Photo by: BLOOMBERG
Explosives and specialty chemicals group AECI expects the R400-million in revenue it earned through the recent bulk sale of land in Somerset West to the City of Cape Town to bolster its headline earnings per share (HEPS) for the half-year ended June 30 by up to 47% to between 168c and 183c, it said on Friday.
The transaction, which saw the group realising profit of R294-million, was also expected to lift earnings per share (EPS) by between 7% and 11% to between 38c and 59c for the six-month period.
The group noted that, while earnings in the prior corresponding period were positively impacted by proceeds from the bulk sale of the group’s surplus property assets in Modderfontein, Gauteng, the EPS and HEPS benefits of this were partly offset by the negative effects of the strikes in South Africa’s platinum mining sector on AECI’s businesses between January and June.
The company expected to release its results on July 28.