Knock for AfroCentric despite favourable trading
AFROCENTRIC Investment Corporation’s share price took a knock yesterday on the JSE, despite the company releasing a favourable trading statement.
The company’s share price dropped by 4.13 percent to close at R6.50 a share on the JSE yesterday.
The company said in a trading statement it expected earning a share for the six months to end December to be between 21.38c and 22.28c.
This would represent an increase of between 18.91 percent and 23.91 percent compared with 17.98c reported in the prior comparative period.
AfroCentric, established in 2008 and listed in the health care sector on the JSE, is a black-owned diversified investment holding company. It has major investments in health care administration, electronics and communications.
AfroCentric said it anticipated that headline earnings a share for the period would also improve compared to last year.
Headline earnings a share for the six months to December are expected to be between 20.91c and 21.81c, reflecting an increase of between 15.51 percent and 20.51 percent compared to 18.10c reported in the prior comparative period, the company said.
AfroCentric has a relationship agreement with Rio Tinto for mineral prospecting and exploration projects and more recently concluded a distribution agreement with Hanwha Corporation, one of the largest industrial conglomerates in South Korea.
In a forward-looking statement issued last year, chairperson Anna Mokgokong, she said the company would drive efficiencies throughout the health care value chain and support the government, as
appropriate, in the transformation of health service delivery.
“We believe the Competition Commission’s recommendations will help to reduce health care costs but it is the national health insurance that will level the playing field.
“Our focus for the foreseeable future is on delivering value for the health care rand,” she said.
The company increased its dividend by 20 percent to 24c a share for the year to June.
Last year, AfroCentric acquired 100 percent of Pharmacy Direct, 100 percent of Curasana and 26 percent of Activo Health.
The company expects to release its interim results next month.