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Five things making headlines in South Africa today

Tsogo Sun reports 6% income increase, Reinet Investments NAV decreased by millions, Lewis improves due to merchandise sales, CPI increases and workers wage bill is stalling.

Here’s what caught our attention on Wednesday:

1. Tsogo Sun – income up 6% 

Luxury hotel and casino management company Tsogo Sun released its condensed results for the year ended March 31 2018. Income for the period increased 6% to R14 billion, Ebitdar is up 4% to R5.3 billion, adjusted headlined earnings per share are down 5% to 197.8 cents and a final dividend of 70 cents has been declared, unchanged from 2017. The company said its trading was impacted by the macro-economic environment, as well political uncertainty.

2. Reinet Investments results

For the financial year ended March 31 2018, Reinet Investments reported a net asset value (NAV) of €5.1 billion, which constitutes a compound return of 12 cents per annum in euro terms and includes dividend paid. The company said the NAV as reported is down €875 million, and is a result of a decrease in the fair value of certain investments. Net asset value per share is at €26.17 and Reinet dividends are at €0.615 per share, paid during the year.

3. Lewis Group’s slight recovery

Furniture retailer Lewis said it continues to show recovery in its performance, as merchandise sales are up by 9.9% to R 2.9 billion. The retailer said it has tight expense control and lower debtor costs, which have been reduced by 10%, while operating cost growth has been limited to 3.3%. Headline earnings per share are down 24.3% to 302.6 cents. Lewis maintained its dividend at 200 cents for the year ended March 31 2018, however a decline in other revenue affected profitability.

4. Inflation rate increases to 4.5%

Headline consumer inflation increased to 4.5% year-on-year in April from 3.8% in March, data from Statistics South Africa showed on Wednesday. Stats SA said the increase was a result of higher taxes on specific products, namely alcohol, fuel and sugary drinks. 

5. Where does the workers wage deal sit?

The government workers’ wage deal, which was meant to be signed on Monday by unions and government, is stalling as the parties did not settle on an agreement on Tuesday. Bloomberg reported that some unions delayed the signing as they consulted other members, while others rejected the terms. An above-inflation increase has been proposed – at 7% for workers and 6% for already highly paid workers. The Ministry of Public Service and Administration said it is hopeful that the deal will be signed this week.

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