Our business was performing ahead of the prior year in terms of revenue and operating profit until March 2020. In quarter four, the Group experienced a significant decline in demand for our products and services as a consequence of national lockdowns, during which time our operations were either closed or subject to drastically reduced activity levels. Delays in the reopening of certain public services, especially in South Africa, further impacted activity.

Our financial response to COVID-19

The Group responded by shifting our financial priorities to align the business to the new reality that COVID-19 has presented, including:

• Specific focus on preserving cash and access to funding.
• Containing costs and focused on rightsizing of operations.
• Review of the carrying values of operating assets to adjust to the changed environment.

Performance review

Revenue decreased by 8%, with all business segments impacted, except for the Financial Services segment which was in line with prior year. The decrease was mainly due to lower vehicle unit volumes attributable to the global COVID-19 crisis, which resulted in severe vehicle market contraction across all geographies in which we operate as well as a reduction in parts and service sales. This was partially offset by an increase in selling prices and the bolt-on acquisitions in the UK and Australia.

Operating expenses, excluding depreciation, decreased by 12%. The decline in operating expenses is due to cost containment and the rationalisation of our operational footprint and staff compliment across our business segments.

Overall, the Group has contained costs successfully over the past three years, but the COVID-19 crisis has required the implementation of a number of additional cost-cutting measures which focused on reducing costs and preserving cash. Swift and purposeful actions were targeted at aligning the Group to the changing economic environment.