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A E C I LIMITED - Summarised financial results, cash dividend declaration, and Board changes for the year to 31 December 2019

Release Date: 25/02/2020 07:05
Code(s): AFE AFEP AECI03 AECI04 AECI01 AECI02     PDF:  
 
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Summarised financial results, cash dividend declaration, and Board changes for the year to 31 December 2019

AECI Limited

(Incorporated in the Republic of South Africa)

Registration number 1924/002590/06

Tax reference number 9000008608

Share code: AFE  ISIN: ZAE000000220

Hybrid code: AFEP  ISIN: ZAE000000238

Bond company code: AECI

LEI: 3789008641F1D3D90E85

("AECI" or "the Company" or "the Group")



Summarised consolidated financial results, cash dividend declaration, and Board changes 

for the year to 31 December 2019



HIGHLIGHTS



- Revenue up 6% to R24 799m

- Profit from operations up 2% to R2 031m

- Solid HEPS growth up 10% to 1 150c

- Receipt of proceeds from sale of shareholding in Crest Chemicals; and land sale

- EBITDA up 26% to R3 326m

- EPS up 30% to 1 223c

- Realignment projects delivered  

- Excellent improvement in safety performance: TRIR of 0,38

- Final ordinary cash dividend: 414cps declared, up 13% (2018: 366cps)

- Total FY19 dividend: 570cps declared, up 11% (FY18: 515cps)



FINANCIAL PERFORMANCE

AECI achieved another pleasing result in the year ended 31 December 2019. Revenue increased by 6,4% 

to R24 799 million (2018: R23 314 million), with all operating segments achieving growth. The 

inclusion of results from Schirm and Much Asphalt for the full 12-month period accounted for 2,5% 

of the revenue increase.



Of the Group's total revenue, 40% or R10 033 million, was generated outside South Africa 

(2018: R9 207 million). In addition to the contribution from Schirm, the majority of the foreign 

revenue amount was generated by Mining Solutions' operations in the rest of Africa and denominated 

mainly in US dollar. 



Businesses in South Africa continued to be challenged by external factors such as depressed GDP growth, 

power supply constraints, high unemployment rates and hence subdued consumer demand.

 

EBITDA of R3 326 million was 26% more than 2018's R2 631 million. Two key contributors to this 

significant increase were the profit realised on the sale of Crest Chemicals and the effects of 

IFRS 16.



Profit from operations was 2% higher at R2 031 million (2018: R1 999 million). The year-on-year 

improvement was curtailed by a goodwill impairment of R147 million in the Food and Beverage segment. 

Higher profitability was recorded in Mining Solutions, Water and Process and Plant and Animal Health. 

The business realignment projects initiated in 2018 in the Explosives business and in Water and Process 

delivered to expectations. The performance in Food and Beverage and Chemicals disappointed.



Earnings per share ("EPS") was 1 223 cents, reflecting 30% growth from the 938 cents reported in the 

2018 financial year. The increase in EPS was underpinned by the following:



- receipt of the proceeds from the sale of the Group's 50% shareholding in Crest Chemicals Proprietary 

  Limited to its joint venture partner, Brenntag (Holding) BV; and

  

- receipt of the proceeds from the sale of land, in Modderfontein, in the second half of the year.



Neither of these transactions were included in the calculation for headline earnings per share ("HEPS").



HEPS of 1 150 cents was 10% higher year-on-year (2018: 1 045 cents). Headline earnings increased to 

R1 213 million from 2018's R1 103 million.

 

The Board has declared a final gross cash dividend of 414 cents per ordinary share, 13% more than the 

366 cents paid for 2018. It brings the total dividend for the 2019 financial year to 570 cents, an 

11% year-on-year increase (2018: 515 cents). A South African dividend withholding tax of 20% will be 

applicable to the dividend, resulting in a net dividend of 331,2 cents per share payable to those 

shareholders who are not eligible for exemption or reduction.



The net asset value per share attributable to ordinary shareholders increased by 8,6% (from 9 135 cents 

in 2018 to 9 925 cents in 2019) and basic earnings per share increased by 30,4% (from 938 cents in

2018 to 1 223 cents in 2019).



DIRECTORATE CHANGES AND CHANGES IN SIGNIFICANT RESPONSIBILITIES

During the year, Graham Dempster and Zellah Fuphe resigned from their positions as Non-executive 

Directors of AECI. The Board thanks both of them for their highly valuable contributions to the affairs 

of the Board and the Company during their respective tenures.



Allen Morgan, who joined the Board in 2010, has indicated his intention to retire at the next Annual 

General Meeting of the Company's shareholders, on 26 May 2020. At that time he will relinquish all his 

other Board responsibilities. This includes chairmanship of the Risk Committee and the Integrated 

Chemicals Financial Review and Risk Committee, as well as membership of the Audit, Investment and Social 

and Ethics Committees. AECI thanks Mr Morgan most sincerely, in advance, for his valued input to the 

Company's affairs during his nine-year tenure.



On 1 June 2019 we welcomed Fikile De Buck as a Non-executive Director. She was subsequently appointed to 

the Audit Committee and to the Social and Ethics Committee. From 26 May 2020 she will succeed 

Rams Ramashia as Chairman of this Committee.



As announced in December 2019, Steve Dawson and Walter Dissinger were also appointed as Non-executive 

Directors with effect from 1 January 2020. We welcome them and look forward to the benefit of their 

international experience in businesses aligned with AECI's strategic growth pillars.



DIVIDEND



DECLARATION OF FINAL ORDINARY CASH DIVIDEND NO. 172

NOTICE IS HEREBY GIVEN that, on Monday, 24 February 2020, the Directors of AECI declared a gross final 

cash dividend of 414 cents per share, in respect of the financial year ended 31 December 2019. 

The dividend is payable on Monday, 6 April 2020 to holders of ordinary shares recorded in the register 

of the Company at the close of business on the record date, being Friday, 3 April 2020.



The last day to trade "cum" dividend will be Tuesday, 31 March 2020 and shares will commence trading 

"ex" dividend as from the commencement of business on Wednesday, 1 April 2020.



A South African dividend withholding tax of 20% will be applicable to all shareholders who are not 

either exempt or entitled to a reduction of the withholding tax rate in terms of a relevant Double 

Taxation Agreement resulting in a net dividend of 331,2 cents per share payable to those shareholders 

who are not eligible for exemption or reduction. Application forms for exemption or reduction may be 

obtained from the Transfer Secretaries and must be returned to them on or before Tuesday, 31 March 2020.



The issued share capital at the declaration date is 121 829 083 listed ordinary shares, 10 117 951 

unlisted redeemable convertible B ordinary shares and 3 000 000 listed cumulative preference shares. 

The dividend has been declared from the income reserves of the Company.



Any change of address or dividend instruction must be received on or before Tuesday, 31 March 2020.



Share certificates may not be dematerialised or rematerialised between Wednesday, 1 April 2020 to 

Friday, 3 April 2020, both days inclusive.



By order of the Board



EN Rapoo

Group Company Secretary



Woodmead

Sandton



25 February 2020



The full long-form announcement including the audit opinion of the external auditor, Deloitte 

and Touche, on the summarised consolidated financial statements, and the basis for its unmodified 

opinion is available at:



https://senspdf.jse.co.za/documents/2020/JSE/ISSE/AFE/fy19.pdf



https://www.aeciworld.com/pdf/investors/annual-results/2019/annual-results-2019.pdf



The annual financial statements including the audit opinion of the external auditor, Deloitte and 

Touche, which sets out a key audit matter and the basis for its unmodified opinion is available at:



https://www.aeciworld.com/reports/ar-2019/pdf/full-afs.pdf



The contents of this short-form announcement are the responsibility of the Board of Directors of 

AECI Limited. This short-form announcement is only a summary of the information in the full 

announcement and does not contain full or complete details. This announcement is itself not audited 

but extracted from audited results. Any investment decisions made by investors and/or shareholders 

and/or bondholders should be based on consideration of the full announcement as a whole. Investors, 

shareholders and bondholders are encouraged to review the full announcement which is available on 

SENS and on AECI's website. The full announcement is also available for inspection at the registered 

office of AECI. Copies of the full announcement are available to investors, shareholders and 

bondholders at no charge, during normal business hours from Tuesday, 25 February 2020.



REGISTERED OFFICE

First floor

AECI Place

24 The Woodlands

Woodlands Drive

Woodmead

Sandton



SHARE TRANSFER SECRETARIES

Computershare Investor Services Proprietary Limited

Rosebank Towers

15 Biermann Avenue

Rosebank

Johannesburg

2196



Computershare Investor Services plc

PO Box 82

The Pavilions

Bridgwater Road

Bristol BS99 7NH

England



SPONSOR

Rand Merchant Bank (a division of FirstRand Bank Limited)

1 Merchant Place

Cnr Fredman Drive and Rivonia Road

Sandton

2196



DIRECTORS

KDK Mokhele (Chairman)

SA Dawson *

FFT De Buck 

WH Dissinger ** 

MA Dytor (Chief Executive) 

G Gomwe *** 

KM Kathan (Executive)

J Molapo 

AJ Morgan 

R Ramashia 

PG Sibiya 



*   Australian 

**  German 

*** Zimbabwean



www.aeciworld.com
Date: 25-02-2020 07:05:00
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