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News Archive: 2016

News archive

1 December 2016

One-off costs hurt Omnia – Business Day

Drought, the mining commodities rout, the election of Donald Trump and Brexit have all conspired to keep the world economy volatile in the first half of its financial year, says diversified global chemicals group Omnia. This has led to profit for the six months to September plunging 22.1% to R258m and headline earnings per share diving 24.9%. Aslam Dalvi comments.
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24 November 2016

Tsogo Sun hikes payout – Bdlive

Gaming and hotels group Tsogo Sun, which is controlled by empowerment conglomerate Hosken Consolidated Investments (HCI), hiked its interim dividend 10% to 34c per share despite adjusted headline earnings for the six months to end-September being static at 88c per share. Dirk van Vlaanderen comments. view article

17 November 2016

High-spirited Spar has a big year – Business Day

Spar Group has reported a 12% surge in full year operating profit, largely defying the malaise in the local retail sector and the Brexit -inspired dip in Europe’s consumer confidence. Simon Anderssen comments.
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16 November 2016

Leaner Telkom to pay first interim dividend – Bdlive

Telkom surprised the market with a maiden interim dividend, which sent the share price up 5.33%. The group also revised its dividend policy that will now see it pay 60% of headline earnings as annual dividends following a strong performance. Aslam Dalvi comments. view article

15 November 2016

Huge profit for Tongaat Hulett – Business Day

Tongaat Hulett saw sugar production roar back to life in its interim results for the six months ended September, despite the recent drought across southern Africa. Dirk van Vlaanderen comments.
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14 November 2016

Mediclinic is ailing in Middle East – Moneyweb

Mediclinic International’s global acquisition spree is costing the private hospital group as it is starting to feel the pinch – mainly in the Middle East. Aslam Dalvi comments. view article

14 November 2016

Pan-African outlook pays off for CIG – Bdlive

Consolidated Infrastructure Group (CIG) posted double-digit growth in the year to August, with revenue shooting up 26% to R4.5bn and headline earnings per share jumping 16%. The recent R850m buyout of electricity and smart meter provider Conlog is expected to further diversify revenue in future. Meyrick Barker comments. view article

8 November 2016

Don't bet against the rand – Moneyweb

As the rand hit R13.49 to the US dollar, its strongest point since August and a full 13.5% higher than it was in January, complacent investors would be wise to pay attention. That’s because 73% of the value derived by the top 40 companies on the JSE comes from offshore – up from 43% in 2006.  Gavin Wood comments. view article

25 October 2016

Why BAT needs Reynolds American – Moneyweb

British American Tobacco (BAT) has made an offer to acquire US tobacco giant Reynolds American in a US$47 billion deal that will create the world’s biggest listed tobacco company by turnover and operating profit. The deal will give BAT greater access to the US market and a significant presence in high growth emerging markets. Dirk van Vlaanderen comments. view article

5 October 2016

Altron asset sale plan pays off – Business Day

Allied Electronics’ turnaround strategy is yielding positive results, as seen in results for the six months to August, when the group managed to reverse a headline loss per share into earnings of 31c. This comes after it has disposed of non-performing assets and will continue to sell more businesses, including companies within its Powertech division, to focus on the technology and telecommunications sector. Aslam Dalvi comments.
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4 October 2016

Famous Brands buys stake in catering firm – Business Day

Famous Brands has sealed a deal with a Johannesburg-based catering company, By Word of Mouth, in its first foray into this competitive sector. By Word of Mouth offers a portfolio of services ranging from development of designer food and beverage menus to event management. Dirk van Vlaanderen comments.
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19 September 2016

Aspen: going big in Japan – Moneyweb

Aspen Pharmaceuticals is now one of SA’s top 100 exporters, employing more than 2 000 people at its Port Elizabeth and Cape Town manufacturing plants. And while geographical expansion has been a strategy from the get-go, the group has trod warily when it comes to expanding into China and the US. However, its latest AstraZeneca and GSK transactions provide Aspen with a neat entry into the Chinese market. Aslam Dalvi comments. view article

16 September 2016

Clover churns out solid results despite draught – Moneyweb

Clover Industries continues to ride out the cyclical nature of milk, with the company lifting the prices of its dairy products in response to the severe drought conditions and the oversupply of milk. Dirk van Vlaanderen comments. view article

16 September 2016

Sasol to splurge on capital projects – Bdlive

Sasol, the international energy and chemicals group, will spend R135bn over the next two years on capital projects in Southern Africa and the US despite weak oil prices. The company’s management is also confident it can maintain its expansion programme, while paying a dividend. Abdul Davids comments. view article

7 September 2016

Discovery sure it can continue on growth path- Business Day

Insurer Discovery’s continued bullish investment into new growth initiatives has been met with caution by analysts, who appear to be adopting a wait-and-see approach about the effect of these investments on profit. Justin Floor comments.
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7 September 2016

WBHO upbeat on infrastructure growth – Bdlive

Wilson Bayly Holmes-Ovcon (WBHO) says the group’s building divisions – both in Africa and Australia – have continued to offset lower activity levels in mining and other civil engineering sectors. Victor Seanie comments. view article

7 September 2016

Weak economies test life insurers' health – Business Times

South Africa’s life insurers make for difficult comparisons as they cover a diverse range of target markets, territories and business activities. But in a week when most will be delivering their results, comparisons will be made. For many investors, the only relevant metric will be the dependability of growth and a dividend, something that will become more challenging as economic growth continues to flag. Justin Floor comments.
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31 August 2016

Bidvest shifts focus – Moneyweb

After successfully unbundling its food services business and listing it as Bid Corporation (Bidcorp) on the JSE, industrial conglomerate Bidvest Group is gunning for bolt-on acquisitions and further expansion into international markets. Dirk van Vlaanderen comments. view article

26 August 2016

Woolies to cut food prices in tight year – Business Day

Upmarket food and clothing retailer Woolworths will focus on bringing its prices down in certain categories after it forecast another hellish year for consumers. While the company targets high-end consumers, even they are feeling the effects of a weaker rand and high interest rates. Simon Anderssen comments.
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24 August 2016

Sun International: risks and opportunities – Moneyweb

Sun International is two thirds of the way through a gigantic programme of global expansion, corporate renewal and portfolio streamlining. Positive results seem just around the corner, but a plethora of risks facing the business may cause further bumpiness along the road. Dirk van Vlaanderen comments. view article

24 August 2016

Metair lifts revenue but Toyota launch hits profit – Bdlive

Metair, the battery and automotive component maker, grew revenue 13.7% to R4 billion for the six months to June, but the costs of supporting a new model launch by dominant customer Toyota halved profits in the period. Simon Anderssen comments. view article

24 August 2016

Standard Bank's mortgage strategy pays off – Business Day

Although it saw a 16% rise in credit impairments for the six months to June, Standard Bank has not burnt its fingers on home loans, unlike rivals that reported results recently. Meyrick Barker comments.
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24 August 2016

Mpact: a mixed bag – Financial Mail

Mpact, the diversified JSE-listed packaging maker that was spun out of Mondi five years ago, posted mixed results in the six months to June. This came as a couple of dismal trading updates in past months spooked the market. Dirk van Vlaanderen comments.
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16 August 2016

Massmart slips back despite strong forecast – Bdlive

Massmart’s share price was hit by profit-taking after the retailer released an interim trading statement, in which it said earnings were expected to grow strongly despite a marked slowdown in the local economy. Dirk van Vlaanderen comments. view article

16 August 2016

Old Mutual profit takes first dive in five year – Business Day

Old Mutual’s first half profits declined for the first time in five years, burned by significant once off items. Rand weakness relative to the first half of 2015 hurt profits but, even on a constant currency basis, pretax adjusted operating profits fell 9% to £708m for the six months to June. Justin Floor comments.
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8 August 2016

Core units lift AECI as profit plunges – Business Day

Chemicals and explosives company AECI has reported a 42 percent decline in operating profit to R571 million for the six months to end June, which was dominated by a constrained environment in South Africa and abroad. Aslam Dalvi comments.
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8 August 2016

Strong operations in Africa lift Shoprite results – Business Day

Shoprite’s stronghold in West Africa helped the domestic retailer report better-than-expected results in July, but the company has yet to successfully branch out in East Africa. Simon Anderssen comments.
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8 August 2016

There's nothing sleepy about Aspen – Moneyweb

Aspen is a stock investors love or hate. Some argue that it is an overpriced generics manufacturer that has grown through acquisition and has now reached its peak. Others argue that management is a group of shrewd operators who have proven themselves over the years. Victor Seanie comments. view article

8 August 2016

Packaging portfolio helps grow Mondi profit – Business Day

Mondi continued its strong financial performance across all of its key metrics in the six months to June, with underlying operating profit of €529m rising 8% on the same period in 2015. Dirk van Vlaanderen comments.
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8 August 2016

Kumba: The Anglo shakeup – Financialmail.co.za

If Anglo American doesn’t want to keep Kumba Iron Ore, why should any other investors want it? At Kumba’s interim results last week, outgoing CEO Norman Mbazima reiterated the reasons Anglo American CEO Mark Cutifani had previously given for selling Kumba, which related to the nature of the assets and the long-term fundamentals for iron ore. Abdul Davids comments. 

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8 August 2016

Governments fail to impede BAT growth – Bdlive

British American Tobacco (BAT) delivered a 4.2% rise in group revenue in the first half of its financial year, despite efforts by governments in the jurisdictions it operates in to stomp out smoking as a practice. Dirk van Vlaanderen comments. view article

22 July 2016

Barclays Africa hit by bond arrears – Business Day

Barclays Africa, whose Absa bank is SA’s second-largest retail home loan provider, has reported a 77% surge in soured home loans – the first large bank to put a number on rising mortgage arrears as high interest rates make it increasingly difficult for households to afford their loan repayments. Meyrick Barker comments.
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11 July 2016

MTN revamp aims to boost client services – Bdlive

MTN SA will spend more than R300 million on a revamp of its 430 stores as part of a turnaround plan for the business, which reported weaker results for the six months to June. The aim is to digitise the stores to enable customers to do self-service, and to respond faster to queries. Aslam Dalvi comments. view article

11 July 2016

JSE plans to shorten settlement of equities – Business Day

The JSE plans to launch a shorter settlement cycle for equities trading on Monday, bringing it in line with other exchanges around the world. Equities orders will take three days to settle after execution on the JSE’s new T+3 system, bringing it in line with the US equities market  Satish Gosai comments.
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1 July 2016

Brexit spells trouble for SA banks, economy – Moneyweb

Following the market-spinning Brexit vote, commentators warn that Britain could slip into recession and that London may lose its status as a global financial centre, particularly if the UK loses the easy access to European markets that it has enjoyed for 43 years. As a result, local banks and insurers, particularly those with UK exposure, face challenging times. Justin Floor comments. view article

17 June 2016

Auditor disclaimer and profit dip tank PPC – Business Day Live

Cement maker PPC on Tuesday scrapped its dividend payment for the first time as it posted a sharp drop in profits in the interim period to March. SA’s largest cement manufacturer also made public a disclaimer stating that auditor Deloitte & Touche could not draw a conclusion on its ability to continue as a going concern. Victor Seanie comments.  view article

17 June 2016

Land sweetens pot for Tongaat Hulett – Business Times

In the year to end-March, Tongaat Hulett generated R1.115-billion of profit from the sale of 121 developable hectares of land, an increase from R829-million from a sale of 108ha last year. Against the backdrop of severe drought in KwaZulu-Natal, the company’s sugar operation profit fell to R124-million from R806-million the year before. However, CEO Peter Staude says the most recent financial results do not mean that Tongaat has become a land development company. Dirk van Vlaanderen comments.
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2 June 2016

Diversification pays off for Tongaat – Business Day

Tongaat Hulett turned in record results for its value-added starch and glucose operations and its property development business, as core sugar output withered in severe drought conditions in KwaZulu-Natal and in poor growing conditions in Mozambique and Zimbabwe.  Dirk van Vlaanderen comments.
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26 May 2016

PPC downgrade warning hits stock – Business Day

PPC, SA’s biggest cement producer, warned on Monday of a credit rating downgrade and said it was in the advanced stages of a capital raising exercise for up to R4 billion. The capital raise would reduce current debt levels and fund existing investment projects. Gross group debt was set to rise to between R10 billion and R12 billion in the next few years.  Victor Seanie comments.
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18 May 2016

Bank bid rough for Diamond – Business Times

Former Barclays plc CEO Bob Diamond and his business partners could have a hard time laying their hands on a sought-after stake in Barclays Africa. Jihad Jhaveri comments.
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18 May 2016

Illovo stakeholders favour a takeover by the UK's ABF – Business Report

More than half of Illovo Sugar minority shareholders are in favour of a takeover by Associated British Foods (ABF), the world’s biggest sugar producer, in a R5.6 billion deal that is a boost for investor confidence in SA and the continent. Dirk van Vlaanderen comments.
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25 April 2016

AdvTech bullish on growth prospects – Moneyweb

When private education conglomerate AdvTech rejected takeover advances from its rival Curro Holdings last year, then CEO (now retired) Frank Thompson’s parting shot was “it’s now business as usual”. The group has posted market-pleasing results for the full-year 2015 with revenue growth of 40% to R2.7 billion. Simon Anderssen comments  view article

25 April 2016

Metair seeks Russian deal – Business Day

Metair is in talks with a leading battery manufacturer in Russia to help it distribute its automotive parts from Turkey that are barred from entering Moscow due to an ongoing political stand-off between the two nations. The SA manufacturer of vehicle components said it was seeking a 50% stake in the Russian company to halt sliding exports from its Turkish plant, Mutlu Akfi. Simon Anderssen comments.
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25 April 2016

Anglo American results dismay – Business Report

Global diversified mining group Anglo American tumbled as much as 8.26 percent on the JSE yesterday before recovering following news that production across most commodities had declined in the March quarter, as well as criticism of its chief executive’s salary. Abdul Davids comments. view article

25 April 2016

Bidvest names its new food spin off – Business Day

Bidvest intends calling its new food-service business, which is to be listed at the start of business on May 30, Bidcorp. In a circular posted to share-holders, it said that the name required the approval of at least 75% of shareholders at a general meeting. This would be held in Johannesburg around May 16. The net asset value of Bidcorp, according to the circular, was about R23 billion. Dirk van Vlaanderen comments.
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25 April 2016

Clover: more defensive, less cyclical – Moneyweb

In ten years, Clover has transformed from a sleepy dairy business into a competitive branded business that is more defensive and less cyclical than most investors realise. While investors are still coming to grips with the fact that margins were not severely affected by the drought or last year’s milk surplus, it is about to transform once again. Dirk van Vlaanderen comments.

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16 March 2016

Menlyn: the best hand for Sun – Business Day

Gaming and hotel group Sun International is likely to abandon its takeover bid for rival Peermont, but executives are hoping a new casino development at Menlyn Maine could significantly strengthen its hand in financial 2017. Dirk van Vlaanderen comments.
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16 March 2016

Sun International: building up a hand – Fin Mail

Sun International’s likely abandoning of the Peermont Global acquisition and the transfer of an existing casino licence to the vibrant Menlyn Maine have lately overshadowed the gaming giant’s efforts to build a niche in Latin America. Dirk van Vlaanderen comments. view article

16 March 2016

Anglo in dramatic portfolio shake-up – IOL

Diversified mining giant Anglo American has  announced a dramatic shake-up of its portfolio after envisioning the disposal of $6 billion (R94.76 billion) of non-core assets by the end of the year and the unbundling of Kumba Iron Ore in 2017. Abdul Davids comments  view article

16 February 2016

ARM forks out to keep B-BBEE status – Business Day

Rainbow Minerals (ARM), in which mining entrepreneur Patrice Motsepe is the biggest shareholder, is putting a R1.9 billion bail-out in place to preserve its broad-based black economic empowerment (B-BBEE) status as volatile markets have rocked its share price. Over the course of last year ARM’s share price fell from about R119 to R40, although it has since recovered to above R70. Abdul Davids comments.
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12 February 2016

Sanlam's results see share fall 6% – BDlive

Sanlam said it had R2.3 billion in discretionary capital to invest in growth initiatives, and had an opportunity to raise more capital if there was a need. CEO Ian Kirk said the insurer had not raised capital for some time and the company had explored some options on how it would raise capital, if needed. Justin Floor comments.  view article

12 February 2016

Anglo Platinum: mixed responses – Financial Mail

Without the burden of one-off restructuring costs and write-downs, Anglo American Platinum’s headline earnings would have increased by about 37% for the past year to December, when compared with 2014. Including the costs of adapting to a weak platinum price, its headline earnings will instead drop by about 90%. The comparison with 2014 looks good only because there was a five-month strike in that year. Abdul Davids comments.
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14 January 2016

Nene sacking an ironic fillip for SA's gold sector – Business Day

Jacob Zuma is causing turmoil in financial markets and unwittingly throwing a lifeline to his country’s struggling gold industry. Mr Zuma’s decision to fire respected finance minister Nhlanhla Nene drove the rand to a record low, instantly reducing labour and other costs in the local currency for mining companies, relative to the US dollars they earn by selling gold. A weak rand offers relief to an industry plagued by labour unrest, ageing mines and power shortages. Gavin Wood comments.
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14 January 2016

Barclays Africa expansion plans intact – BDlive

Barclays Africa on Tuesday said it would not be deterred from expansion on the rest of the continent despite its parents’ shareholding in the African operation falling to about 20% in two to three years. Jihad Jhaveri comments. view article

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