Delta interim results 27 June 2011
Revenue for the half year ended 27 June 2011 reduced to R130 million from
R199 million for the comparable period last year. The decline was
attributable to reduced sales volumes, a lower average selling price and no
repeat of the lithium manganese sales recorded in the comparable period
The group's profit before tax of R4.5 million for the half year ending 27
June 2011 was considerably lower than the profit before tax of R170.1
million for the half year ended 27 June 2010, which included R132.5 million
related to the sale of the Australian residue disposal site. Profit also
was reduced by business interruption and additional expenses related to a
transformer failure, for which a R6.1 million insurance recovery was
received subsequent to period end.
Net interest received of R2 million was lower than the R6 million received
in the comparable period in 2010, due to lower interest rates and reduced
cash balances after payment of a special dividend in the second half of
Attributable earnings after taxation totalled R2.5 million (2010: R138.4
The group's earnings per share for the half year ended 27 June were 5.1
cents (2010: 281.6 cents), and headline earnings per share were 5.3 cents
(2010: 166.4 cents).
No interim dividend was declared.
The group's second half sales volumes are expected to improve over both the
first half of 2011 and second half of 2010. Whilst the average Rand
selling prices are expected to be lower due to more competitive USD selling
prices, the additional sales volume and revenue are expected to provide
improved manufacturing overhead recoveries.