Stellar interim results December 2018
Net profit before operating expenses was R175 277 (net loss of R171.2 million). Profit for the period came to R159.7 million (loss of R187.5 million). In addition, headline profit per share came to 14.86cps (headline loss per share of 17.44cps).
No ordinary dividends were declared during the six month period ended 31 December 2018. Preference share dividends are based on 120% of prime on preference share capital of R600 million for the six month period ended 31 December 2018 and preference share dividends of R36.1 million were paid, which included a payment of R0.9 million to Mr. CJ Roodt, an independent non-executive director of Stellar Capital.
Stellar Capital has embarked on a number of disposals of its industrial assets in the period. These have predominantly been driven by the committed intention to reduce group debt and the implementation of all of these transactions in the next period will see the group debt completely settled and Stellar having a strong cash position. Stellar will settle debt as a priority and should the conclusion of any transaction result in surplus cash, Stellar will communicate how it expects to deploy such cash.
Stellar will continue to reduce its exposure to the industrial space in an organised fashion but with cognisance of protecting shareholder value. Stellar expects to build stronger relationships with its partners and co-shareholders in Prescient in exploring its exposure to the financials services market. Stellar will focus its efforts on supporting the growth strategies underway at Prescient as all shareholders seek to expand the platform business into new services and across greater geographies. Stellar is excited about the prospects it sees in its alternative financial service businesses.
The economic and political environment in South Africa remains challenging in a year of elections. International markets are also uncertain with Brexit in Europe as well as turmoil in the United States. This all means we need to remain flexible to change in the global economy and the potential impact on markets that impact our various businesses.