JSE-listed speciality chemicals group AECI on Tuesday announced that it expected to report higher earnings per share (EPS) and headline earnings per share (HEPS) for the six months ended June 30, mainly owing to the sale of the group’s surplus property assets at Modderfontein.
The company stated that it expected EPS for the half-year to be between 45% and 55% higher than the 356c achieved during the prior corresponding period, while HEPS were expected to be between 5% and 15% higher than the 356c of the prior corresponding period.
AECI had, in March, received the R1.06-billion payment for the sale of about 1 600 ha of land and the buildings thereon, as well as its property development business Heartland Properties and investment holding company AECI Real Estate to Chinese diversified property development company Shanghai Zendai Property in 2013.
Profit from operations relating to the transaction was R421-million before tax, which was included in EPS. However, owing to the nature of the property sold, only R240-million of this amount was recognised as revenue profit and was, therefore, included in HEPS.
Further, the HEPS benefits of the property transaction were partially offset by the negative impact of the strike in the South African platinum sector on the group’s businesses between January and July, AECI added.
The group expected to release its financial results for the six-month period on or about July 29.