The Daily Update: 18 May

July 17, 2023

FinMeUp

South Africa

Tsogo Sun Gaming Limited- Trading statement

EPS is expected to be between 161 and 171 cents, representing an increase of between 20% and 28%.

Afrimat Limited- Announcement of audited summary consolidated financial statements for the year ended 28 February 2023

Group revenue increased by 4.9% to R4.9 billion.
Headline earnings per share declined by 15.7% to 457.6 cents.
Net debt:equity ratio decreased to 4.4%.
Final dividend per share of 110.0 cents.
Return on net operating assets was 24.0%.
Group revenue increased, but operating profit decreased by 13.3% due to increased operating activity and rising costs.
Jenkins iron ore mine and Nkomati anthracite mine performed well.
Industrial Minerals segment was affected by economic slowdown and electricity supply interruptions.
Construction Materials segment also experienced a decrease in operating profit.
Future Materials and Metals segment was added to support diversification.
The Afrimat Board approved a spend of R300.0 million to purchase all shares in Glenover to optimize its value.

Investec Limited- Results for the year ended 31 March 2023 and Dividend Declaration

Adjusted earnings per share increased by 25.0% to 68.9p
Funds under management (FUM) decreased by 4.5% to 61.0 billion
Net inflows were 377 million, with 810 million inflows in discretionary FUM partly offset by 433 million net outflows in non-discretionary FUM.
Net core loans increased to 30.2 billion, driven by corporate lending and residential mortgage lending.
Customer accounts (deposits) increased by 5.8% in constant currency but decreased by 1.4% to 39.6 billion on a reported basis.
Revenue grew by 14.6%, benefiting from higher global interest rates and loan growth, but fee and commission income was impacted by unfavorable market movements.
The cost to income ratio improved to 59.6% as operating costs grew by 9.5%.
Pre-provision adjusted operating profit increased by 28.0% to 917.0 million.
Expected credit loss (ECL) impairment charges increased to 81.1 million, resulting in a credit loss ratio (CLR) of 23bps.
Return on equity (ROE) was 13.7% and return on tangible equity (ROTE) was 14.7%.
Tangible net asset value (TNAV) per share remained broadly flat at 474.3p.
The Group proposed a final dividend of 17.5p per share, resulting in a full-year dividend of 31.0p.

Purple Group Limited

Purple Group has finalized its rights offer, which has received approval from the JSE Limited.
The offer aims to raise R105 million and is partially committed and partially underwritten.
Shareholders who have provided irrevocable commitments will follow their rights in full.
An underwriter will cover the remaining shares not subscribed by existing shareholders.
The rights offer includes 129,629,630 renounceable rights to subscribe for new shares.
The offer price is 81 cents per rights offer share, representing a discount of approximately 31.87% to the average share price.
Trading of letters of allocation will begin on May 24, 2023.
Shareholders can apply for excess rights offer shares if they wish to.
Fractional entitlements will be rounded up or down to the nearest whole number.

Capitec Bank Holdings Limited- Dealings in securities

Netcare Limited- Trading statement

EPS is expected to be between 45.6 cents and 46.1 cents, representing an increase of between 48.5% and 50.2%.

Sanlam Limited- Operational Update

The group reported a strong start to the year with robust performance on key metrics.
Cash net result from financial services increased by 26%.
Net result from financial services increased by 25%.
Net operational earnings increased by 38%, driven by higher investment income and lower project expenses.
Life insurance new business volumes were 3% lower on a present value of new business premiums (PVNBP) basis compared to the prior year.
The group conducted R347 million in share buybacks in the first quarter of 2023.