Wrap Text
Summarised audited consolidated annual financial results for the year ended 31 March 2020
Short form announcement
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2005/003306/06)
Share code: SEP
ISIN: ZAE000138459
Summarised audited consolidated annual financial results for the year ended 31 March 2020
Short form announcement
Sephaku Holdings Limited (“SepHold” or “the Company”) hereby reports on the group’s summarised
audited consolidated annual financial results for the year ended 31 March 2020. 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 at R727 million (2019: R836 million)
- Operating loss at R4,6 million (2019: operating profit R14,7 million]
- Net loss after tax at R17,4 million (2019: net profit after tax R44,0 million)
- Basic loss per share at 8.12 cents (2019: basic earnings per share 21.21 cents)
- Headline loss per share at 7.97 cents (2019: headline earnings per share 21.08 cents)
- Net asset value per share at 432.54 cents (2019: 521.25 cents)
- SepCem equity accounted earnings at R0,5 million (2019: R46,3 million)
Métier
- Sales revenue at R727 million (2019: R836 million)
- EBITDA margin at 4.8% at R34 million (2019: 6.2% at R52,2 million)
- EBIT margin at 1.7% at R12,1 million (2019: 4.7% at R54,7 million)
- Loss after tax of R0,6 million (2019: net profit after tax of R21,5 million)
SepCem¹
- Sales revenue at R2,2 billion (2019: R2,3 billion)
- EBITDA margin at 16.4% at R359,0 million (2019: 20,2% at R464,0 million)
- EBIT margin at 8,2% at R178,7 million (2019: 12.2% at R280,6 million)
- Profit after tax at R1,3 million (2019: R128,7 million)
1
SepCem has a December year-end as a subsidiary of Dangote Cement PLC. The FY 2020 figures are for the 12 months
ended December 2019 and FY 2019 figures are for the 12 months ended 31 December 2018.
Remarking on the results, Chief Executive Officer, Neil Crafford–Lazarus said,
“The building materials industry has been impacted by the continued decline in demand as both public
and private infrastructure investment decrease. The challenges we have experienced in the past
several years are well known however, our focus on the sector is informed by our executive’s
extensive knowledge and expertise in the construction value chain. We are convinced that our
strategy will result in exceptional returns for shareholders in the long term and remain fully committed
to being a renowned manufacturer of high-quality building materials.
The concrete sector performance is closely linked to the highly cyclical construction industry. The
longer the period of the business cycle contraction, the more the infrastructure investment declines.
By March 2020, South Africa had experienced over 70 months of a downturn in the business cycle,
the longest on record. The low barriers to entry and their lower operating costs provided an impetus to
the independent mixed-concrete manufacturers to use aggressive pricing tactics to secure supply
contracts. The aggregates producers intensified the competition by increasing the opportunistic
production and supply of mixed concrete. Despite these daunting challenges, we have developed
counter strategies to ensure the successful implementation of Métier’s strategic objectives going
forward.
For cement manufacturing, the contest between primary manufacturers, blenders and importers
ensued during the year. Cement demand was largely constrained with a significant decline observed
in the rural consumer markets which have been the driving force for bagged cement demand since
2018. The Statistics South Africa data on building plans completed as approved by the large
municipalities recorded unexpected year-on-year (y-o-y) quarterly growth as large construction
projects such as Fourways Mall and The Leonardo were being completed. The reality on the ground
was better reflected by the sharp contrast of the leading indicator in building plans passed that
recorded y-o-y quarterly decline throughout 2019 resulting in an annual contraction of 12.6% following
-1.4% in 2018.
In this unprecedented time of COVID-19, the welfare of all stakeholders, especially our employees,
is critical to business continuity. To that effect, I am pleased to state that the operations have
demonstrated the ability to respond quickly to create a safe workplace for all group employees.
Numerous measures to mitigate workplace exposure to the virus are in place and regularly assessed
for efficacy.”
Audit report
The Company’s independent auditor, BDO South Africa Incorporated, has issued an unqualified audit
opinion. The independent auditor’s report includes a section on key audit matters. The key audit
matters raised in the auditor’s report relates to assessment of goodwill for Impairment and Investment
in Subsidiary. The full auditor’s report is available on the Company’s website:
www.sephakuholdings.com/investor-centre/results-and-reports
Annual General Meeting
The annual general meeting ("AGM") of SepHold shareholders will be held by way of electronic
communication at 10:00 (SA time) on Monday, 14 September 2020. A letter to SepHold shareholders
containing, inter alia, the summarised audited financial results for the year ended 31 March 2020 and
the Notice of the AGM has, today, been distributed to SepHold shareholders and is also available on
the Company’s website: www.sephakuholdings.com/investor-centre/results-and-reports
Analyst results presentation conference call
A results conference call for analysts will be at 10:00 (SA time) on Friday, 14 August 2020.
Registration is required and can be done using the following link to obtain the dial-in details:
SEPHAKU HOLDINGS FY 2020 FINANCIAL RESULTS PRESENTATION
The results presentation can be downloaded from the Company website from 9:45 (SA time) on
Friday, 14 August 2020 on the following link:
https://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/2020/JSE/ISSE/SEP/FY2020.pdf
and on SepHold’s website at www.sephakuholdings.com
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@sephold.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.
Availability of BEE compliance certificate
In accordance with the JSE Listings Requirements, notice is given to shareholders that the
Company’s Annual Compliance Certificate, in terms of section 13G (2) of the Broad-Based Black
Economic Empowerment Amendment Act No. 46 of 2013, is available on the Company’s website:
https://sephakuholdings.com/corporate-governance/governance-documents/
11 August 2020
Enquiries contact:
Sakhile Ndlovu
Investor Relations Officer
sakhile@sephold.co.za
012 612 0210
Sponsor:
Questco Corporate Advisory Proprietary Limited
www.questco.co.za
About Sephaku Holdings Limited
Sephaku Holdings Limited is a building and construction materials company with a portfolio of investments in the cement and
mixed concrete sectors in South Africa. The company’s core investments are a 36% stake in Dangote Cement South Africa
(Pty) Ltd and 100% in Métier Mixed Concrete (Pty) Ltd. SepHold’s strategy is to generate income and realise value for
shareholders through the production of cement and ready mixed concrete in Southern Africa.
www.sephakuholdings.com
Date: 11-08-2020 05:06:00
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