To view the PDF file, sign up for a MySharenet subscription.

SEPHAKU HOLDINGS LIMITED - Unaudited interim financial results for the six months ended 30 September 2019

Release Date: 14/11/2019 07:30
Code(s): SEP     PDF:  
Wrap Text
Unaudited interim financial results for the six months ended 30 September 2019

Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459

Unaudited interim financial results for the six months ended 30 September 2019

Sephaku Holdings Limited (“SepHold” or “the Company”) hereby reports on the group’s interim financial results for the six months ended 30 September 2019.
SepHold, Métier Mixed Concrete (Pty) Ltd (“Métier” or “the subsidiary”) and Dangote Cement SA (Pty) Ltd (“SepCem” or “the associate”) are collectively
referred to as the group.

SALIENT POINTS
SepHold
-   Group consolidated revenue: R425,8 million (H1 20191: R467,9 million)
-   Net loss after tax: R7,7 million (H1 2019: net profit after tax R26,5 million)
-   Basic earnings per share: (3.70) cents (H1 2019: 12.83 cents)
-   Headline earnings per share: (4.11) cents (H1 2019: 12.59 cents)
-   SepCem equity accounted loss: R7.8 million (H1 2019: profit R16,2 million)
-   Net asset value per share: 518.51 cents (H1 2019: 512.30 cents)

Métier
-  Sales revenue: R425,8 million (H1 2019: R467,9 million)
-    EBITDA margin: 7.0% at R29,9 million (H1 2019: 8.3% at R38,9 million)
-    Profit after tax: R7,7 million (H1 2019: R20,3 million)

SepCem²
-  Sales revenue: R996,9 million (H1 2018: R1,2 billion)
-    EBITDA margin: 15.2% at R151,5 million (H1 2018:22.0% at R255,5 million)
-   Net loss after tax: R21,6 million (H1 2018: net profit after tax R44,9 million)

¹ H1 2019 refers to the interim period ended 30 September 2018
² SepCem has a December year-end as a subsidiary of Dangote Cement PLC.
Remarking on the results, Chief Executive Officer, Dr Lelau Mohuba said,
“The building materials industry remains under pressure because of declining infrastructure investment. The operating landscape has resulted in some
competitors engaging in extremely aggressive marketing tactics to secure market share. The consequences of these tactics include the growth of the blenders
due to the price competition in bulk cement supply and irrational pricing in the mixed concrete markets.

As stated in the Chairman and CEO statement in our FY2019 integrated report, we are focussed on sustainability through lowering debt, improving cost
efficiencies, defending market share, enhancing risk management processes and strengthening our stakeholder engagement efforts. Furthermore, we continue
to explore diversification investment opportunities to enhance shareholder value. Therefore, in spite of the challenging interim period characterised by negative
earnings, we are committed to weathering the downturn so as to emerge a renowned building materials entity.

I make these final remarks as the CEO with mixed emotions of sadness and excitement. Sadness – because I have had to retire due to health challenges, in a
period requiring all hands-on deck as well as resilience to ensure the fulfilment of the SepHold vision. Excitement – for the future prospects I know are ahead
for me personally and for the group. Nonetheless, I exit with immense confidence in the remaining executive management team to achieve the strategic goals
and vision.”

Analyst results presentation conference call
A results conference call for analysts will be at 11:00hs (SA time) on 14 November 2019. Registration is required and can be done using the following link to
obtain the dial-in details: Sephaku Holdings - Interim Results conference call registration link
The results presentation can be downloaded from the company website from 1045hs on 14 November on the following link:
http://sephakuholdings.com/investor-centre/presentations/

Directors statement
The contents of this short-form announcement are the responsibility of the board of directors of the company. Shareholders are advised that this short-form
announcement represents a summary of the information contained in the full announcement, published on the Stock Exchange News Service (SENS) at
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/SEP/Sept2019.pdf and on SepHold’s website : www.sephakuholdings.com on 14 November 2019. The
full announcement is available for inspection at no charge during normal business hours at SepHold’s registered office. Copies of the full announcement may
also be requested by email at info@sepman.co.za.

Any investment decisions by investors and/or shareholders should be based on consideration of the full announcement as a whole, and shareholders are
encouraged to review the full announcement, which is available for viewing on SENS and on the Company’s, website set out above.

On behalf of the board
Pretoria
Dr. Lelau Mohuba                                                                                              Neil Crafford Lazarus
Chief executive officer                                                                                       Financial director
14 November 2019

Enquiries contact: Sakhile Ndlovu, Investor Relations Officer, 012 612 0210.

Sponsor: Questco Corporate Advisory Proprietary Limited.
About Sephaku Holdings Limited
Sephaku Holdings Limited (“SepHold”) is a building and construction materials company with a portfolio of investments in the cement sector in South Africa. The Company’s core investments are a
36% stake in Dangote Cement South Africa (Pty) Ltd (Sephaku Cement) and 100% in Métier Mixed Concrete (Pty) Ltd. The strategy of SepHold is to generate growth and realise value for
shareholders through the production of cement and ready mixed concrete in Southern Africa.

www.sephakuholdings.com

Date: 14/11/2019 07:30:00
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.

Share This Story