Imperial Holdings reported a 25 per cent rise in headline earnings to R10,46 a share in the year to June, with the motor retailing division being the biggest contributor to the group's outstanding financial performance. Revenue increased by 22 per cent to R42,6-billion and operating profit by 23 per cent to R3,5-billion.The Imperial group sold 46 170 new vehicles in the first half of 2005, which was an increase of 47 per cent over the same period a year ago. Total vehicle sales for the division, including used cars and trucks, amounted to a record 136 882 units.

Imperial not only represents many of the local manufacturers in its retail network, but it is also the dominant player among vehicle importers, with a wide range of source companies around the world. It has recently added Tata, Lotus and Proton to its ranks. During the period under review Imperial added 31 dealerships to its stable, with nine of them due to the acquisition of Ford dealerships in the Sydney metropolitan area in Australia.

Transport group Unitrans was another to cash in on the spending spree on new and used vehicles, with revenue increasing by almost R2-billion to R11-billion in the year to June. Unitrans' profit engine, its motor and financial services division, makes up about two thirds of the group and this division's revenue rose 22 per cent on the back of record sales. The division's operating income, after depreciation, jumped 45 per cent to R213-million. The company spent R24-million on the expansion of its dealer network during this period.

Unitrans said it planned to buy the 40 per cent of the Hertz car rental company it did not already own from empowerment group New Africa Investments Limited so as to have full control if its subsidiaries.

The McCarthy group, which has been through troubled waters in recent times, was another retail motor group to report booming sales and profits McCarthy, now in the Bidvest stable, reported a 24 per cent increase in operating income to R501-million in the 12 months to June. Much improved vehicle sales and an exceptional year for the Yamaha importation business, as well as record results from the financial services division, accounted for the 14 per cent rise in revenue to R13,6-billion.

McCarthy's network of 99 outlets retailed a record 72 603 units during the period under review. New vehicle sales increased by 19 per cent to 41 556 units, while used vehicle sales decreased slightly from 31489 to 31 047 units during the same period.

McCarthy now concentrates on its core motor business after being dragged down by diversified interests in the past. It became technically insolvent as a result of the poor performance of the Retail Apparel Group, which went into liquidation when the banks pulled the plug on its credit lines. Now that is all behind the revitalised company as it benefits from the record vehicle market.

The listed dealer group of Combined Motor Holdings (CMH) is also enjoying the boom times. The company's six-month report, to the end of August, showed a 154 per cent increase in after-tax profit from R22,4-million to R86,9-million. Turnover was up 61 per cent to R2,7-billion. The company is also expecting record results in terms of turnover from its rental company National/Alamo when its results are announced later in the year.