Wrap Text
Condensed consolidated unaudited financial results for the six months ended 30 September 2021
Sephaku Holdings Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 2005/003306/06)
JSE share code: SEP
ISIN: ZAE000138459
(“SepHold” or the “Company”)
Condensed consolidated unaudited financial results for the six months ended 30 September 2021
Short Form Announcement
SepHold hereby reports on the condensed consolidated unaudited financial results for the six months
ended 30 September 2021 (“Interim Results”). 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
SepHold¹
- Group consolidated revenue: R411,8 million (H1 2021: R291,1 million)
- Net profit after tax: R17,8 million (H1 2021: net loss after tax R29,6 million)
- Basic earnings per share: 6.98 cents (H1 2021: basic loss per share: 11.65 cents)
- Headline earnings per share: 7.03 cents (H1 2021: headline loss per share: 13.47 cents)
- Net asset value per share: 447.81 cents (H1 2021: 421.08 cents)
Métier¹
- EBITDA margin: 10.8% at R44,6 million (H1 2021: 9.4% at R27,4 million)
- EBIT margin: 7.6% at R31,4 million (H1 2021: 5.5% at R15,9 million)
- Net profit after tax: R20,1 million (H1 2021 net profit after tax: R7,5 million)
SepCem²
- Sales revenue: R1 197,0 million (H1 2020: R883,7 million)
- EBITDA margin: 12.4% at R148,8 million (H1 2020: 6.8% at R59,8 million)
- EBIT margin: 5.7% at a profit of R67,7 million (H1 2020: nil at a loss of R0,95 million)
- Net profit after tax: R7,7 million (H1 2020 net loss after tax: R83,7 million)
- SepCem 36% equity accounted profit: R2,8 million (H1 2020: loss R30,1 million)
¹ Figures refer to the interim period ended 30 September 2021 for FY 2021 ending 31 March 2022 and H1
2021 refers to the six months ended 30 September 2020 for the financial year-ended 31 March 2021.
² SepCem has a December year-end as a subsidiary of Dangote Cement PLC, therefore the figures refer to the
six months ended 30 June 2021 and H1 2020 refers to the figures for the interim ended 30 June 2020.
Remarking on the results, Chief Executive Officer, NR Crafford-Lazarus said,
“As we get to the end of the 2021 calendar year, I am sure numerous management teams would echo
my sentiment that the worst of the pandemic seems to be over. Although we lost valuable colleagues
who were essential participants in our pursuit of group success, we have renewed focus and energy to
achieve our goals going forward.
We continued to meet our bank debt obligations during the reporting period, thereby reducing the
burden on our balance sheet. The capital balance on the SepCem project loan is R786 million, and
Métier is R55 million with a target to reach balances of R570 million and R47 million respectively by
year-ending 31 March 2022. Demand for cement has remained strong, albeit not at the levels of the
surge that occurred in Q3 CY2020 following the pandemic-related national lockdown.
SepCem and the other cement manufacturers await the ITAC decision to impose effective tariffs
against cement and clinker imports. If positive, the decision will provide much needed demand
resulting in increased sales volumes for domestic producers who create employment for South Africans.
The imports absorb approximately one million tonnes of demand annually, which would improve their
financial performance if available for the incumbents. SepCem is well placed to benefit from the tariffs
because the KZN market constitutes 15% – 20% of its annual sales volumes which is the port of entry
for almost 70% of the imported cement.
Unfortunately, further downstream, the mixed-concrete demand remains constrained, which has
placed downward pressure on volumes. We remain cautiously optimistic for the planned government
infrastructure plans to stimulate the economy, which if implemented would provide impetus to the
construction value chain. Metier's improved profitability margins demonstrate the benefits of the
turnaround.
The July social unrest characterised by the looting and destruction of retail outlets impacted our
performance during the interim period. Specifically, SepCem's bagged cement volumes were negatively
impacted due to damaged hardware retail branches that were subsequently closed. Engagement with
retail chains has revealed that several outlets have not reopened, but plans are to repair them soon.
For Métier, there was an indirect impact mainly due to the rioting in the KZN province that resulted in
downtime of 5 days and therefore a loss in revenue for this period.
As we enter the second half of the 2022 financial year, we continue to operate within the COVID-19
protocols and retain the cautious approach of implementing stipulated guidance from the government
and own governance processes.”
No dividends were declared or paid during the period under review or during the six months ended
30 September 2020.
Investor results presentation conference call
A results conference call for investors will be at 11:00hs SAST on 19 November 2021. Registration is
required and can be done using the following link to obtain the dial-in details:
Sephaku Holdings-Interim Results conference call
The results presentation can be downloaded from the Company website from 17:00hs SAST on
18 November 2021 on the following link:
https://sephakuholdings.com/investor-centre/presentations/
Conference replay
South Africa: 010 500 4108
UK: 0 203 608 8021
Australia: 073 911 1378
USA: 1 412 317 0088
International: +27 10 500 4108
Replay Access Code: 40825
Forward-looking statements
Any forward-looking information is the responsibility of the board of directors and has not been
reviewed or reported on by the company’s external auditors.
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/2021/jse/isse/SEP/Int2021.pdf
and on SepHold’s website: www.sephakuholdings.com on 18 November 2021. 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.
Centurion
18 November 2021
______________________________________________________________________________
Enquiries contact:
Sakhile Ndlovu
Investor Relations Officer
info@sephold.co.za
012 648 6300
Sponsor to Sephaku Holdings: Questco Corporate Advisory (Pty) Ltd
About Sephaku Holdings Limited
Sephaku Holdings Limited 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 SA (Pty) Ltd and 100% in Métier
Mixed Concrete (Pty) Ltd. SepHold's strategy 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: 18-11-2021 05:00:00
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.
Sharenet Sites 
