Three years after listing on the JSE, integrated mobility group Zeda says it plans to scale up by expanding its reach into the rest of Africa.

Announcing the company’s financial results for the financial year ended September 30 on Tuesday, CEO Ramasela Ganda said the Avis/Budget group had offered Zeda just under 20 licences to establish operations in countries in East, West and Central Africa.

The group currently operates the Avis and Budget businesses in South Africa and ten other countries in sub-Saharan Africa, Ghana included, under a long-term licence agreement with the Avis Budget Group.

Ganda emphasised that the group would accept the offer to expand into Africa with “discipline” and with a focus on “return on investment”.

Zeda saw revenue increase by 1.7%, to R10.6-billion for the year under review, compared with the previous financial year, with operating profit up 10.8%, to R1.6-billion.

The group also signed off on a total dividend of 181c a share.

“We delivered strong earnings growth and operating margin expansion in a constrained market, while maintaining our commitment to shareholder returns,” said Ganda.

“The quality of our performance reflects the strength and robustness of our diversified business model, which has effectively countered the pressures facing traditional car rental services and vehicle sales.”

Zeda’s leasing business helped to fuel the group’s revenue growth, with revenue from leasing activities expanding by 15.7%, to R3.2-billion.

Notably, this region now contributes 23.5% of the group’s overall leasing revenue.

"The exceptional growth trajectory witnessed in the leasing segment is in line with our strategic focus on corporate leasing, heavy commercial and the greater Africa region,” noted Ganda.

The car rental business saw a 3.4% drop in revenue, to R7.4-billion. Operating profit, however, was up 23.3%, to R872-million.

Used car revenue was down 4.1% in a tough market, while subscription volumes were up 53%.

Ganda said Zeda made notable progress in its selected strategic focus areas.

In terms of funding, the group accessed the debt capital markets to reduce its refinancing exposure and increase long-term debt to 60%.

Innovation efforts included launching an e-commerce platform to grow the retail segment of the car-sales business.

Internally, the company enhanced its digital channels and aligned its structures to become more customer centric.

“Zeda enters the new year with the strategic clarity, financial strength and operational momentum to scale with purpose,” noted Ganda.