Lib­erty has dis­ap­point­ing re­sults

The Star Early Edition - - COMPANIES - Sandile Mchunu

LIB­ERTY Hold­ings dropped more than 6 per­cent on the JSE on Fri­day after it re­leased a set of dis­ap­point­ing half-year re­sults, where it showed a 30 per­cent de­cline in prof­its.

Chief ex­ec­u­tive David Munro said the group’s re­sults re­flected dif­fi­cult mar­ket con­di­tions and the chal­lenges it faced as a busi­ness.

“While these re­sults are dis­ap­point­ing, our sales vol­umes and net cash in­flows are show­ing pos­i­tive growth, high­light­ing the strength of our brand, the value cus­tomers see in what we of­fer and the power of our sales and dis­tri­bu­tion team,” Munro said.

The share price closed 6.04 per­cent down at R105.52.

The fi­nan­cial ser­vices group cited weak eco­nomic growth in South Africa as part of the rea­son for a de­cline in its busi­ness dur­ing the six months to June.

“The down­grade in the coun­try’s sov­er­eign credit rat­ing, the cur­rent so­cio-po­lit­i­cal en­vi­ron­ment and ris­ing un­em­ploy­ment lev­els con­tin­ued to place pres­sure on con­sumer dis­pos­able in­come,” the group said.

These dif­fi­cult op­er­at­ing con­di­tions and cer­tain op­er­a­tional is­sues re­sulted in a de­cline in head­line earn­ings com­pared with the six months to end June 2016. Nor­malised head­line earn­ings per share of 456.7 cents a share were down 29.74 per­cent from the prior pe­riod, while head­line earn­ings de­clined 15 per­cent to R1.54 bil­lion from R1.81bn.

De­spite the chal­lenges, the group re­mained pos­i­tive about the fu­ture.

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