In its first fiscal year following the separation from Barloworld, Zeda has reported robust financial results, with revenue climbing to R9.1 billion and operating profit reaching R1.55 billion. The company's heavy commercial vehicle leasing division notably thrived, showing significant growth even after the termination of a major contract with the city of Johannesburg.
Zeda's CEO, Ramasela Ganda, acknowledged the challenging market conditions but highlighted the company's successful navigation through them. In a strategic financial move, Zeda repaid its unbundling debt earlier than expected and concluded the year with R4.8 billion in net debt. This fiscal prudence was rewarded with an investment-grade rating from Moody's (NYSE:MCO).
Looking ahead, Zeda is set to enhance its mobility services by introducing subscription models such as iLease, aimed at personal long-term leasing. The company is targeting an operating margin improvement to 17%, reflecting its commitment to growth and efficiency.
Following these positive developments, Zeda's share value saw an uptick of over four percent. The company is also laying the groundwork for future shareholder returns by establishing a dividend policy, with expectations to begin payouts in the next fiscal year.
Additionally, Zeda has achieved a B-BBEE Level 1 status for its main business divisions, underscoring its dedication to transformation and empowerment within the South African business landscape.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.