Last checked at 16 Jul 2021 13:39
AECI Limited - Trading Statement for 6 Months ended 30 June 2021AECI Limited - Trading Statement for 6 Months ended 30 June 2021
PR Newswire
London, July 16
AECI LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1924/002590/06)
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
TRADING STATEMENT FOR THE HALF-YEAR ENDED 30 JUNE 2021 AND UPDATE REGARDING CIVIL UNREST
In compliance with the JSE Limited Listings Requirements, shareholders and noteholders are advised that for the half-year ended 30 June 2021 (the period), AECI’s headline earnings per share (HEPS) and earnings per share (EPS) are expected to be between 515 cents and 540 cents. This is between 115% and 125% higher than the 240 cents HEPS reported for the half-year ended 30 June 2020 (the prior corresponding period) and between 110% and 120% higher than the 245 cents EPS reported for the prior corresponding period. The significant contributors to the changes were as follows:
Although the negative effects of the COVID-19 pandemic continue to have an impact on some of the sectors in which AECI’s customers operate, this impact has been less severe than in the first six months of 2020. The costs incurred to restructure businesses in AECI Chemicals in 2020, to enhance sustainability in South Africa’s low growth environment, did not recur and the benefits of restructuring were realised in line with expectations. EPS in the prior corresponding period was negatively affected by the impairment of goodwill, property, plant and equipment as a result of the Group exiting non-performing businesses. This negative EPS effect was offset by the profit on disposal of the Group's paper chemicals business unit.The financial information on which this trading statement is based has not been reviewed and reported on by the Company's external auditor.
AECI's results for the half-year ended 30 June 2021 are expected to be released on SENS on or about Wednesday, 28 July 2021.
CIVIL UNREST IN SOUTH AFRICA
The violence, looting and general lawlessness being experienced in South Africa is a matter of extreme concern and the Company condemns it in the strongest terms.
The safety of our people is our priority. Some of our employees and their families, in KwaZulu-Natal and parts of Gauteng, have been directly affected by the unrest. We continue to monitor their wellbeing and assist them wherever possible.
All our businesses remain operational at this time and we are collaborating closely with our customers and suppliers to safeguard the supply chain.
At this time, the Company is unable to quantify the real or potential impact of the prevailing volatility on its businesses. Information in this regard will be shared, as appropriate, when it is possible to do so.
Woodmead, Sandton
16 July 2021
Equity and Debt Sponsor: Rand Merchant Bank (A division of FirstRand Bank Limited)