Here’s what caught our attention on Tuesday:
1. SAA recalls planes
SAA has recalled some of its aircraft to undertake compliance verification in line with South African Civil Aviation Authority requirements. This comes after an oversight inspection conducted by SACAA at SAA’s maintenance subsidiary SAA Technical. According to Bloomberg, the recall will impact the flight schedule on Tuesday, will some flights rescheduled and others cancelled.
2. Pick n Pay results
Pick n Pay is reporting a 17.5% increase in headline earnings per share to 91.28 cents and a 0.9% increase in basic earnings per share to 81.31 cents for the 26 weeks ended September 1, 2019. The company’s revenue increased by 4.8% to R44.2 billion and the gross profit margin increased by 19.8% for the period. The company attributes its productive results to a positive performance by its core operations in South Africa, which resulted in overall earnings growth at group level, despite challenges in Zambia and Zimbabwe, the company says. The board is declaring an interim dividend of 42.80 cents per share, up 9.5% for the period.
3. Hans Klopper denies wrongdoing
Corporate lawyer and business rescue practitioner, Hans Klopper has denied all wrongdoing after an enquiry found that he was negligent in his role as business rescue practitioner in the Harrison and White insolvency case. Moneyweb is reporting that Klopper is criticising the Section 417 inquiry report, labelling it as inaccurate and unfair and has lamented being found ‘guilt[y] without trial’. Klopper also criticised Moneyweb for an article detailing the findings of the report.
4. Eskom takes Deloitte to court
Eskom has filed court papers against Deloitte in an attempt to recover R207 million tied to contracts it alleges were improperly awarded to the auditor by Eskom executives in 2016. Reuters is reporting that Eskom CEO Jabu Mabuza is asking the court to declare the activities under the batch of tenders as ‘unlawful and unconstitutional’ and says Deloitte must pay the money back.
5. Sale of Group Five Projects saves jobs
Group Five Construction subsidiary Group Five Projects is being sold to the Mauritian-based Teichmann Group after going into business rescue. The sale of the subsidiary effectively saves the jobs of nearly 500 permanent employees and contractors. Moneyweb is reporting that the sale, which was disclosed on Monday, will include all of Group Five’s assets, including the construction plant and equipment in its operating locations.