Wrap Text
Trading update and trading statement for the six months ended 31 August 2016
Astrapak Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1995/009169/07
ISIN: ZAE000096962
Share Code: APK
ISIN: ZAE000087201
Share Code: APKP
("Astrapak" or "the Group" or "the Company")
Trading update and trading statement for the six months ended 31 August 2016
Astrapak is currently finalising its financial results for the six months ended 31 August 2016 ("the
current reporting period").
The Group concluded the reporting period with higher revenue and improved gross profit and profit
from continuing operations. Performance in Q2 was significantly better than in Q1.
Despite the tough economic climate, the Group is well placed due to the benefit of the business re-
engineering journey and the generation of a reasonable proportion of volume on multi-year contracts
in relatively defensive categories.
The macro effects currently affecting South Africa have exacerbated short-term exchange rate
volatility, which in turn creates a lag effect on raw material price recovery. The working capital
implications of this are however being well managed and working capital days will be in line with the
six months ended 31 August 2015 ("the previous corresponding reporting period"). Furthermore, the
Group has achieved not only an increase in total volumes during the reporting period, with a
particularly pleasing improvement in Moulding volumes, but achieved an increased selling price per
kilogram.
As communicated to shareholders in the audited financial statements for the year ended 29 February
2016, whilst major new projects were coming on stream later than envisaged they are now
commercialising and will deliver at an accelerating pace as the fiscal year progresses. Machines
relocated from Gauteng to Kwazulu-Natal in the early part of the reporting period are now
consolidated on a single site and producing ahead of budget.
Flexible operations classified as held for sale are performing well and ahead of budget, which is
supportive of the businesses realising full value on sale. Surplus properties are in the process of
transfer to new owners. Shareholders are reminded of the Stock Exchange News Service ("SENS")
announcement dated 8 July 2016 announcing that properties associated with the businesses of
Barrier Film Convertors and Peninsula Packaging had been sold for R49,6 million, a premium to book
value of R6,2 million.
The net realisable value of all assets classified as held for sale as at 31 August 2016 is anticipated to
be in line with the carrying values recorded in the Statement of Financial Position.
Net interest bearing debt to equity, which excludes near-cash implicit in net realisable value of assets
held for sale, is not materially different to the position at year end.
The high corporate costs are being methodically eliminated as the business is right-sized and made
more efficient in line with previously communicated strategic objectives.
In terms of the Listings Requirements of the JSE Limited, companies are required to provide guidance
to the market when they are satisfied that a reasonable degree of certainty exists that the financial
results for the current reporting period will differ by at least 20% from the results of the previous
corresponding reporting period.
The directors anticipate:
• Headline earnings per share ("HEPS") from both continuing and discontinued for the current
reporting period is expected to reflect a profit of between 4,3 cents and 4,6 cents compared to
headline loss per share of 6,5 cents reported in the previous corresponding period.
• HEPS from continuing operations for the current reporting period is expected to reflect a loss
of between 4,6 cents and 4,8 cents compared to a headline loss per share of 6,4 cents
reported in the previous corresponding period, an improvement of between 25% and 28%.
• Earnings per share ("EPS") for the current reporting period for both continuing and
discontinued operations is expected to reflect a loss in the range of 3,5 cents and 3,7 cents
compared to an EPS of 16,6 cents reported in the previous corresponding period. The
previous corresponding period did however include capital profits which contributed 23,1
cents to the comparative EPS.
• EPS from continuing operations is expected to reflect a loss in the range of 4,0 cents and 4,2
cents compared to a loss of 7,0 cents reported in the previous corresponding period, an
improvement of between 40% and 43%.
• Earnings and headline earnings include the servicing cost of the preference shares and the
minorities share of after tax profits. Profit after tax from continuing operations before these
two items is anticipated to increase by between 65% and 68%.
Astrapak’s financial results for the six months ended 31 August 2016 are scheduled to be released on
SENS on Thursday, 29 September 2016.
The financial information on which this trading statement is based has not been reviewed or reported
on by the Company’s external auditors and represents the best estimates of management.
Sandton
23 September 2016
Sponsor:
RAND MERCHANT BANK (A division of First Rand Bank Limited)
Date: 23/09/2016 04:19:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
