New assurance firm

Aimed at extending the various insurance services that McCarthy Insurance Services already offers, McCarthy Financial Consulting will offer life and investment consulting services to McCarthy's ever-growing customer base of more than 300 000 vehicle owners.

"We are very excited to announce this partnership with the Liberty Group, as we are now able to provide our customers with an even more diverse product offering, sculpted according to their unique requirements and expectations.

"It represents a unique initiative in the motor retail sector," said Brand Pretorius, chairman of McCarthy Motor Holdings.

The new venture will have financial consultants based in the major centres around the country, who will be fully trained by the Liberty Group to analyse and advise customers on their personal finance requirements.

"We believe that this joint venture will draw strength from its major stakeholders, McCarthy Motor Holdings and the Liberty Group, as it is supported by effective and professional customer service, and an innovative range of products," said Tony Alison, managing director of McCarthy Insurance Services.

According to Pretorius, McCarthy Financial Services, of which McCarthy Insurance Services forms an integral part, is continuing to make a growing contribution to McCarthy Limited's overall profitability.

The division recorded a net profit before tax of R23.6m over the six months July to December 2002, up 19.4 percent on the same period in 2001.

"We at McCarthys are therefore confident that this partnership with the Liberty Group will only go from strength to strength, and that it will assist us in reducing our reliance on the new vehicle market, which tends to be quite cyclical and suffering from significant margin pressure, at present."