JSE-listed WeBuyCars expects its core headline earnings for the six months ended March 31 to be between R500.2-million and R516.3-million – a 24% to 28% increase from the R402-million in core headline earnings reported for the six months ended March 31, 2024.

Core headline earnings per share (HEPS) for the period are expected to be between 119.4c and 124.2c, a 0% to 4% increase from core HEPS of 119.9c reported for the prior comparable period.

Basic earnings are expected to be between R505.3-million and R508.8-million, compared with the prior comparable period’s basic loss of R69.5-million.

Basic earnings per share are expected to be between 121c and 122c, compared with the prior comparable period’s basic loss a share of 20.7c.

Headline earnings are expected to be between R506.5-million and R510-million, compared with a headline loss of R69.5-million in the prior comparable period.

HEPS are expected to be between 121.3c and 122.3c, compared with a headline loss a share of 20.7c in the prior comparable period.

The company points out that it issued about 83.19-million new shares in February, March and April last year,  which had an unfavourable impact on the core HEPS, basic earnings per share and HEPS for the six months ended March 31 this year.

These new shares were issued in terms of the prelisting capital raise, which was approved by shareholders prior to the listing of WeBuyCars on the main board of the JSE in April 2024.

There were no basic earnings per share or headline earnings per share adjustments in the six months ended March 31.

However, basic earnings per share and headline earnings per share for the previous corresponding period were impacted by noncore, one-off transaction costs and non-cash call option derivative accounting adjustments.

Pursuant to the successful listing on the JSE, the company incurred one-off professional, legal and JSE listing fees totalling R45-million.

Also, the call option derivative asset of R426.5-million (as at September 30, 2023) relating to the prelisting call options on the founders’ 25.1% shareholding in the group was derecognised on March 25, 2024.

This fair value loss on derecognition of the call option derivative was once-off in nature, noncore and had no cash flow impact.

The company expects to release its results for the period on or about May 19.