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OMNIA HOLDINGS LIMITED - Trading Statement for the Six Months Ended 30 September 2018

Release Date: 12/11/2018 07:51
Code(s): OMN     PDF:  
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Trading Statement for the Six Months Ended 30 September 2018

OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1967/003680/06
JSE code OMN
ISIN ZAE000005153 (“Omnia” or “the Group”)



TRADING STATEMENT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2018


In terms of the Listings Requirements of JSE Limited, companies are required to publish a trading statement as soon
as they become reasonably certain that the financial results for the period to be reported on will differ by more than
20% from that of the previous comparative period.


Accordingly, a review by management of the financial results for the six months ended 30 September 2018 has
indicated that the basic (loss)/earnings, headline (loss)/earnings, earnings per share (‘EPS’) and headline earnings
per share (‘HEPS’) are expected as follows:


                                      Six months to              Expected change in                Six months to
                                   30 September 2018                 percentages                30 September 2017
                                    Expected Values                                                Actual Values
 
 Basic (loss)/earnings             (R57m) to (R114m)               -120% to -140%                     R285m
 Headline (loss)/earnings          (R57m) to (R113m)               -120% to -140%                     R283m
 EPS                           (85 cents) to (170 cents)           -120% to -140%                    423 cents
 HEPS                          (84 cents) to (168 cents)           -120% to -140%                    420 cents


Shareholders are reminded of the cyclical nature of the Group’s Agriculture business which constitutes approximately
half of Group revenue. Profitability for the first six months of the financial year is historically low with this business
peaking during the South African summer planting season that typically runs from September to December each
year. The Fertilizer margins are however reflective of the financial pressure being experienced by farmers and the
competitive environment. The Mining business continues to experience pressure on volumes and margins across
the various commodities and geographies in which the business operates. The Chemicals business remains under
significant pressure due to the under-performing manufacturing and mining sectors along with the general slowdown
in the South African economy.


The decline in earnings for the first 6 months ended 30 September 2018 is attributable to the following items:


    •   Lower profitability in the Agriculture division due to the delayed planting season in certain territories.
    •   Margin pressure on emulsions, detonators and accessories in the Mining division as well as a further write
        down of a problematic debtor in Angola of R44 million where the client defaulted on the payment
        arrangements committed to in the prior reporting period.
    •   A constrained manufacturing and mining sector in South Africa impacting the performance of the Chemicals
        division.
    •   Higher unrealised foreign exchange gains in the prior period compared to foreign exchange losses in the
        current period due to the volatility of the South Africa rand against the US dollar. The Group does
        economically hedge foreign exchange risk however the recognition of the movements in the income
        statement do not always match.
    •   Interest payable on long-term working capital loans raised following the utilisation of cash to acquire Umongo
        Petroleum effective 1 December 2018 and Oro Agri effective 1 April 2018.
    •   Earnings for the six months for both Umongo Petroleum and Oro Agri have been negated in part by the
        amortisation of the intangible assets arising from the acquisitions.


Protea Chemicals that forms part of the Chemicals division, is continuing to face deteriorating market conditions that
are negatively impacting on the performance of the business. In light of the current market conditions, the business
strategy has been reviewed and restructuring process commenced. The benefit of these interventions is only
expected to improve the financial performance of the business in the next financial year.


The Group is in the process of completing the financial results for the six months ended 30 September 2018 that are
expected to be released on SENS on or about 27 November 2018.


The financial information on which this trading statement is based has not been reviewed or reported on by Omnia’s
independent external auditors.



Johannesburg
12 November 2018

Date: 12/11/2018 07:51:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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