EOH back in the green but needs R750 million
Unlock the Stock: Afrimat and Spear REIT
Afrimat’s track record is spectacular. Spear REIT is a highly respected property fund. On Unlock the Stock, you can learn about both companies.
RCL is far more than just a chicken business
RCL is far more than just a chicken business these days, which isn’t a bad thing.
Bidvest: strong trading profit growth in every division
Bidvest closed 3.8% higher after releasing results for the six months to December 2021.
Liberty Two Degrees: reversions continue to bite
Liberty Two Degrees holds stakes in some of the most iconic properties in the country
Alviva: 20% revenue growth excl. Tarsus
After teasing the market with a trading statement, Alviva has now released all the details of the interim results for the six months ended December 2021.
PSG Group and the Great Value Unlock
This is one of the biggest news stories on the JSE that we’ve seen in a while
JSE Limited: a cash cow in a shrinking field
You may not be aware of this, but the JSE Limited is listed on the JSE. You’re right in thinking that this sounds like the financial version of the movie Inception
Capital Appreciation on the deal train
The company has announced the acquisitions of three technology companies in South Africa and a 20% stake in a company in the Netherlands.
Woolworths won’t miss 2021
as released results for the 26 weeks to 26 December 2021. The share price rallied 6% despite a fair share of negative commentary on Twitter.
Cashbuild’s negative sales momentum continues
Cashbuild released its interim results for the six months ended 26 December 2021
EOH climbed 9.4% to R5.80 per share after a trading statement for the six months to January 2022 was released, along with an update on the disposal of Sybrin.
In a significant milestone, EOH achieved a positive operating profit and HEPS number. If you know where the company has come from, you’ll know how big a deal that is.
Profit margins have increased at gross profit and adjusted EBITDA level.
HEPS for this interim period is expected to be between 38 and 44 cents per share. That’s a strong result vs. a headline loss per share of 36 cents in the comparable period.
The group had a cash balance on 31 January 2022 of R625 million as well as undrawn overdraft facilities of R250 million. Of that cash balance, R85 million is restricted and R116 million is in entities held for sale.
The Sybrin disposal has met all conditions precedent and the final pricing for the deal is an EV/EBITDA multiple of 6x. Once the proceeds are received, the group would’ve repaid R360 million of debt since 31 January 2022.
The bridge facility repayable in October 2022 stands at R1.2 billion. The sale of the last-remaining IP division will raise R417 million gross of transaction fees. This still leaves a significant amount of debt that needs to be settle and there aren’t many ways left to do it, with an equity capital raise clearly one of the possibilities here.
The market cap is R1 billion and the immediate debt problem is around R750 million, so the worries aren’t over yet for shareholders.
