SEPHAKU FORECASTS TURNAROUND IN HEADLINE EARNINGS PER SHARE

SEPHAKU Holdings (SepHold) said group headline earnings per share were expected to be between 5.79 cents and 6.39c for the year to March 31, compared with a headline loss per share of 7.97c last year. SepHold, subsidiary Métier Mixed Concrete and Dangote Cement SA, an associate investment, expected the group’s basic earnings per share to be between 7.44c and 8.22c, also well up from the headline loss of 8.12c last year. In a trading update on Friday, the group said Métier’s turnaround programme had improved its profitability, resulting from a combination of lower costs and income from the disposal of under-utilised assets. Métier’s earnings contributed to the group’s positive earnings before equity accounting for the associate, thereby supporting SepHold’s operational expenses for the period under review. SepCem’s sales volumes were 9 percent higher year-on-year for the 12 months ended December 31, in spite of zero sales during level 5 of the national lockdown. SepCem is a subsidiary of Dangote. Postperiod and following the Dangote Cement plc results announcement for the first quarter to the end of March, SepCem’s sales volumes continued to increase by 6 percent compared to the initial quarter to the end of March last year. SepCem’s revenue increased by 16 percent for the period due to a combination of increased volumes and unit prices. SepCem’s firstquarter results would be accounted for in SepHold’s interim financial results for the six months to the end of September. Sephaku’s core investments are a 36 percent stake in Dangote Cement SA and 100 percent in Métier Mixed Concrete. Recent economic and other trade data have shown that the demand for building materials grew by double digits in South Africa last year, through the recession and lockdowns, with the trend continuing into this year. |