The shares of PPC, the 129-year-old cement maker, closed weaker on the JSE when the company slumped in annual earnings in late March and announced the sale of its subsidiary PPC, Aggregate Quarries Botswana, for R61 million as it slumped amid rising debt.
The stock closed 4.18 percent lower at R3.21 on the JSE yesterday.
PPC announced in a trade statement released yesterday that its subsidiary PPC Botswana has entered into a binding purchase agreement with a Botswana-based construction and mining company to acquire a 100 percent stake in the quarrying business. “PPC assumes that the conditions precedent will be met before August 1, 2021,” said PPC.
Last month, the group announced that it had entered into an agreement to sell PPC Lime for 515 million as part of an ongoing capital restructuring program. The group said the net proceeds of R500 million would be used to relieve PPC’s South African balance sheet.
PPC expects total earnings per share from continuing operations to be between zero and 5 cents per share, a decline of between 91 and 100 percent from 54 cents per share in the same period last year.
She expects a total loss per share of up to 18 cents per share, which corresponds to a decrease of 167 percent compared to the profit of 27 cents per share in the previous year.
“The headline result is influenced by the impairment losses on property, plant and equipment as of March 31, 2020, some of which will now be reversed as of March 31, 2021,” announced the group.
The group said that earnings and total earnings for fiscal year 2021 were affected by hyperinflation accounting as defined in IAS 29 – Financial Accounting in Hyperinflationary Economies – resulting in a net cash loss of 200 million the previous period.
However, earnings per share from continuing operations is likely to be between 63c and 68c per share for the 12 months ended March, PPC said, up 247 to 258 percent from a loss of 43c per share in the previous year.
PPC also said it would likely report a 108-112 percent increase in net income per share, to 10-15 cents per share, compared to a loss of 124 cents per share a year earlier.