Revenue from continuing operations soared to R160.1 million (2016: R72.7 million), results from operating activities increased to R22.3 million (2016: R18.4 million), profit from continuing operations attributable to equity holders of Vunani decreased to R12.8 million (2016: R13.6 million), while headline earnings per share from continuing operations lowered to 8.2 cents per share (2016: 12.5 cents per share).
The reporting period was dominated by the country going into a technical recession after two consecutive quarters of negative economic growth. The economy did recover slightly in the second quarter of the year as the gross domestic product grew a seasonally-adjusted 2.5% quarter-on-quarter. The recovery was due to increased economic activity in the agriculture, finance and mining sectors. The agricultural sector has seen bumper maize and wheat crops, which have resulted in lower prices during the period. As a result of the improved inflation outlook the Reserve Bank reduced interest rates by twenty-five basis points. The Rand however remains vulnerable to further ratings downgrades, global risks and political uncertainty.
Despite difficult market conditions, Vunani performed considerably well for the six month period to 31 August 2017.