Sea Har­vest ex­pects lower earn­ings

The Star Early Edition - - NEWS - Sandile Mchunu

JSE-LISTED and ver­ti­cally in­te­grated fish­ing com­pany Sea Har­vest ex­pects its in­terim ba­sic earn­ings per share (Eps) to de­cline by at least 31 per­cent as it ab­sorbs the costs re­lated to ac­quir­ing Vik­ing Group. Sea Har­vest Group and a con­sor­tium of black-owned com­pa­nies an­nounced in June that they pur­chased the fish­ing busi­nesses of Vik­ing for R885 mil­lion.

The trans­ac­tion was to be sat­is­fied through a com­bi­na­tion of cash on hand, bank fa­cil­i­ties, an is­sue of Sea Har­vest shares and ven­dor fund­ing. The group ad­vised its share­hold­ers on Fri­day that it ex­pected to re­port ba­sic Eps of be­tween 46 cents and 50c a share for the six months to end June, rep­re­sent­ing a de­crease of be­tween 31and 25 per­cent as com­pared to the Eps of 67c re­ported last year.

How­ever, its head­line earn­ings for the pe­riod were ex­pected to in­crease by be­tween 0 and 3 per­cent, to be­tween R110.7m and R114m, com­pared to the head­line earn­ings of R110.7m re­ported last year. Sea Har­vest said it also ex­pected its ba­sic head­line earn­ings per share (Heps) to de­cline dur­ing the pe­riod.

“Ba­sic head­line earn­ings per share are ex­pected to de­crease by be­tween 20 and 13 per­cent, to be­tween 45c and 49c a share, com­pared to the Heps of 56.6c a share re­ported for the six months to end June 2017,” the group said.

It added that the de­crease in Eps and Heps is mainly at­trib­uted to an in­crease in the weighted av­er­age num­ber of shares in is­sue (Wanos) due to the an­nu­alised ef­fect of the shares is­sued at list­ing on March 23 last year be­ing in­cluded in the Wanos cal­cu­la­tion for only a por­tion of the pe­riod in 2017. Its in­terim re­sults will be out on Au­gust 28.

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