EOH updates pro forma numbers
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 has released updated pro forma financial effects related to the disposal of the Information Services Group. In simpler terms, this means that the company is helping investors understand what the financial picture will be after the latest sale of assets to help settle debts.
EOH has been managing to dispose of its “intellectual property” assets at EBITDA multiples of just over 5x. This leaves behind the core businesses of iOCO (an ICT distributor and systems integrator) and NEXTEC, focused on people outsourcing solutions and intelligent infrastructure.
When the Information Services Group deal was initially announced, the pro forma effects were based on EOH’s results for the year ended July 2021. As these are outdated and differ from the latest results by more than 10%, EOH is required under JSE rules to provide updated pro forma effects.
“Pro forma” just means that the accountants present numbers at a specific date as though the transaction had gone ahead, even though it hadn’t. In this case, EOH has used 31 January 2022.
On this assumption, Headline Earnings per Share (HEPS) would’ve been 34 cents instead of 41 cents, as the company has sold off some of its earnings. Net asset value per share would’ve been 108 cents instead of 114 cents.
To give an idea of how much trouble the balance sheet is still in, net tangible asset value per share (i.e. excluding intangible assets like goodwill etc.) would be negative 380 cents per share.
These updated pro forma numbers should be read in conjunction with the deal circular. You can read this here
