Here’s what caught our attention on Tuesday:
1. GDP data due
South Africa’s gross domestic product data for the second quarter is due to be released on Tuesday. In the first quarter GDP contracted by 3.2%, with the largest contributions coming from petroleum, chemical products, rubber and plastic products, motor vehicles and others. The mining and quarrying sector also decreased by 10.8% in the first quarter, according to StatsSA. A survey conducted by Bloomberg predicts that South Africa’s economy will grow, but at a ‘limp pace’.
2. Stringfellow to appear in court
Thomas Stringfellow, a well-known financial advisor who has handed himself over to the police following allegations of misappropriating client funds, is expected to appear in court on Tuesday. This will be Stringfellow’s first appearance since handing himself in. Moneyweb previously reported that Stringfellow raised large sums of money from clients to supposedly fund Lorna Jane SA, the local business for the global women’s sportswear brand, which he ran alongside his wife Leigh.
3. DRD Gold results
Gold miner DRD Gold is reporting a significant increase of 541% in headline earnings per share to 10.9 cents for the year ended June 30, 2019. The company’s earnings per share grew by 687% to 11.8 cents and it is reporting a revenue increase of R2.76 billion, up 11% for the period. The company says gold production increased by 6% to 4 977kg. A final cash dividend of 20 cents per share is being declared for the period.
4. Cashbuild results
Building material retailer Cashbuild is reporting a 6% decrease in headline earnings to R434 million for the 53 weeks ended June 30, 2019. The company’s headline earnings per share also decreased by 6% to 1 910 cents for the period. Revenue went up by 4% to R10.82 billion while operating profit declined by 7% to R559 million. The company says during the year it opened 11 new stores, refurbished 26 and relocated four. It also closed five Cashbuild stores, three P&L Hardware stores and six DIY stores. The company says it plans to continue with its store expansion, relocation and refurbishment strategy in the year ahead. A total dividend of 855 cents per share is being declared, up 2%.
5. Aspen trading statement
Pharmaceutical company Aspen issued a trading statement for the year ended June 30, 2019 on Tuesday The company says it sees revenue increasing between 0% and 2% and revenue from commercial pharmaceuticals in emerging markets decreasing between 3% and 0%. Aspen added that revenue benefitted from a positive relative exchange rate influence. It’s flagging a decrease in headline earnings per share of between 13% and 19%, despite strong cash flows delivered during the period. Results are due on September 11.