Yesterday, local markets were relatively quiet with the All-Share Index rising by just 0.05%. The Resource sector managed to post gains of 0.46% but these were largely offset by the Financial Sector which declined 0.37% on the day.
On the company front, there was a lot of activity, starting with Imperial which released its interim results for the six months ended 31 December 2016. The financial highlights showed that revenue was up 2% to R61.3 billion (42% foreign), operating profit rose 4% to R3.2 billion (36% foreign), core EPS declined 8% to 795 cents per share, HEPS dipped 15% to 682 cents per share while EPS fell 23% to 679 cents per share. The company also announced an interim cash dividend which was 14% lower at 320 cents per share. The company generated a return on equity of 13.2% and had a weighted average cost of capital of 10.0%.
Anglogold also released results to 31 December 2016. These showed that free cash flow of $278m was up 97% from 2015 (after once-off bond redemption costs) the company’s high yield $1.25bn bond has been fully redeemed, reducing interest and improving free cash flow. The company reported production of 3.628Moz, which was within its original guidance. Total cash costs came in at $744oz, while all-in sustaining costs (AISC) were $986oz, also within the revised guidance. Adjusted headline earnings (AHE) of $143m, was up from $49m in 2015 and the company reported a reduced net debt level of $1.92bn. The net debt to Adjusted EBITDA ratio came in at 1.24 times while dividends are to resume after 3 year hiatus - ZAR 130 cents per share (approximately US 10 cents per share).
Shoprite released interim results to 31 December 2016. These showed that trading profit was up 19.2% to R3.907 billion, turnover climbed 14.0% - from R62.519 billion to R71.297 billion and diluted headline earnings per share was up 15.5% to 460.0 cents. Shoprite declared a dividend per share of 180 cents, an increase of 15.4% over the 156 cents of the corresponding period.
Cashbuild released a trading statement indicating that Cashbuild expects to announce that basic, headline, diluted basic and diluted headline earnings per share (“EPS”), for the six months ended 31 December 2016, to be between 38% and 48% higher than the prior comparative period. Shareholders are referred to a special resolution which was adopted on 30 November 2015, whereby 200,000 shares were repurchased by the company from the Cashbuild Empowerment Trust (“the BEE Transaction”). The related cost was provided for as a personnel expense in the group’s prior interim results. Excluding the impact of the prior period BEE Transaction, Cashbuild expects that basic, headline, diluted basic and diluted headline EPS, for the interim results, to be between 5% and 10% higher than the prior comparative period.
Mediclinic released a trading update where CEO Danie Meintjes said, “During the year we have seen a good trading performance from our two largest platforms in Switzerland and Southern Africa in line with full year expectations for the full year 201617. The challenging environment in Abu Dhabi has unfortunately continued into the second half of the year. We are taking many steps to build the foundations for a successful, sustainable, long term business in the Middle East, leveraging our excellent reputation and operational performance in Dubai. One key step is the re-branding of our Abu Dhabi facilities to Mediclinic and we expect this project to be implemented during 201718.” The market didn’t take confidence in this trading update and we saw the counter sell off 4.6% on the day.
Anglo American released preliminary results showing that net debt reduced 34% to $8.5 billion, driven by $2.6 billion attributable free cash flow and asset disposals, capital expenditure reduced by 37% to $2.5 billion and disposal proceeds of $1.8 billion were received. The company saw cost and volume improvements of $1.5 billion, net of headwinds, driven by production volumes which increased by 2% and unit costs which decreased by 9% in US dollar terms. Group underlying EBITDA increased by 25% to $6.1 billion, despite a 3% decrease in average prices and profit.
Clover released a trading statement advising shareholders that the company now expects headline earnings and earnings for the period to be between 11.0% and 16.0% and between 7.1% and 12.1% lower, respectively, compared to the prior comparative period HEPS for the period are expected to be between 12.1% (14.20 cents) and 17.1% (20.05 cents) lower than HEPS of 116.96 cents reported for the comparative period. EPS for the period are anticipated to be between 8.3% (9.60 cents) and 13.3% (15.41 cents) lower than EPS of 116.07 cents reported for the comparative period.
Pioneer Food Group released a trading statement advising shareholders that a reasonable degree of certainty exists that the earnings per share of the company for the six month period ending 31 March 2017 is expected to be between 38% and 55% lower than that reported in the previous corresponding period. Accordingly, earnings per share is expected to be between 252.1 and 347.3 cents per share compared to the 560.1 cents per share reported for the previous corresponding period. The headline earnings per share of the company for the six month period ending 31 March 2017 is expected to be between 38% and 55% lower than that reported in the previous corresponding period. Accordingly, headline earnings per share is expected to be between 250.2 and 345.0 cents per share compared to the 556.4 cents per share reported for the previous corresponding period.
Tiger Brands released a trading update indicating that group turnover increased by 12% for the four month period ended 31 January 2017, compared with the corresponding period last year. Turnover in the corresponding period excludes the contribution from TBCG (DFM), which was disposed of with effect from 25 February 2016. The growth in turnover was driven by a solid domestic performance while weak trading conditions on the rest of the continent, coupled with a stronger rand, impacted Exports and International.
Grindrod released a trading statement advising shareholders that the headline loss for the year ended 31 December 2016 is expected to be between R 455 million and R 465 million. Following the first half headline loss of R 381 million the result reflects a gradual improvement in volumes and rates in the second half of the year. The prior year reflected positive headline earnings of R 559 million.
The total value traded for the day was R18.55bn.