Hits&Misses

African Bank staff win, Metair reports recovery, CA Sales operating profit up

AFRICAN

Bank has obtained shareholder approval for its employee share ownership scheme, which is part of a first phase of preparations for the group’s initial public offering (IPO). The bank intends to implement a broad-based employee share ownership scheme to align employee and shareholder interests, allowing employees to participate in the value created following the IPO and to support the attraction and retention initiatives of the bank, it said.

AUTOMOTIVE

components manufacturer Metair reported headline earnings per share of 135c for the year ended December after a loss of 17c the year before. Group revenue increased 14% to R15.9bn, supported by improved original equipment manufacturer production volumes in South Africa as well as increased price growth, mainly due to higher material cost content and complexity.

FAST-MOVING consumer goods company CA Sales reported a 40.7% rise in operating profit to R747.31m for the year to December, helped by organic growth, acquisitions, expansion into new regions and the onboarding of new clients to its portfolio. Revenue increased 19.4% to R11.32bn. Headline earnings per share increased 25.3% to 97.97c. The group, which was unbundled from investment holding group PSG when it delisted, operates in several Southern and East African countries.

ELLIES has filed for business rescue after failed attempts to diversify into the lucrative renewable energy market. The company has been under pressure since the downturn of its mainstay business, which was closely tied to the fortunes of DStv’s satellite service. Its proposal to acquire Bundu Power for R203m was scrapped after it failed to secure backing from its lenders.

IMPALA Platinum expects half year headline earnings per share to be “at least 20% lower” than the previous year. It was hit by an almost one-third decline in metal prices as well as fallout from an accident at its Rustenburg mine and a three-day strike at the Bafokeng Rasimone Platinum Mine.

ADIDAS expects weaker operating profit this year on the back of reduced profits from selling off Yeezy shoes after its break-up with musician Kanye West. Its projection echoes statements from Nike,

Puma and JD Sports, which have all warned of weaker profits this year.

CONSTRUCTION,

manufacturing and mining were among industries that contributed to a decline in formal employment in the fourth quarter of 2023, Stats SA said. Formal employment in the fourth quarter decreased by 194,000 jobs, or 1.8%, quarter on quarter. The quarterly employment statistics show total employment in the formal sector dropped from 10.9million in September to 10.7million in December.