Dawn expects interim headline loss a share to widen

7th December 2018 By: Marleny Arnoldi - Deputy Editor Online

JSE-listed Distribution and Warehousing Network (Dawn) on Friday advised its shareholders that it expects its headline loss per share (HLPS) for the six months ended September 30, to deteriorate by between 174% and 188%.

It expects to report a HLPS of between 37.6c and 39.5c, compared with the HLPS of 13.73c reported for the six months to September 30, 2017.

The loss per share (LPS) will reflect a deterioration of between 98% and 112% to between 38.5c and 41.2c, compared with the LPS of 19.45c reported for the prior period.

Meanwhile, a South African company whose share capital is owned by Derek Tod and Luis Baeta, has recently offered to buy out Dawn’s shares at R0.01 apiece, which will result in Dawn delisting from the JSE.

Dawn distributes branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products, as well as manufacturing pipe and fittings.

It has been facing liquidity constraints, notwithstanding progress made with a turnaround strategy.

The transaction has been approved by the competition authorities in South Africa, and is pending shareholder approval.