Tongaat Hulett SENS
Unaudited interim financial results for the six months ended 30 September 2019
Salient features:
- Revenue of R8,085bn (Sep 2018: R8,207bn), down 1,5%;
- Operating profit of R1,278bn (Sep 2018: R315m);
- EBITDA of R1,586bn (Sep 2018: R703m);
- Basic loss per share improved to -235 cents (Sep 2018: -356 cents);
- Headline loss improved to R314m (Sep 2018: loss of R354m);
- Headline loss per share improved to -233 cents (Sep 2018: -322 cents);
- Operating cash flows before working capital movements of R1,478bn (Sep 2018: R1,076bn);
- Net asset value of -R3,925bn (Sep 2018: R886m);
- No interim dividend was declared in the current year.
Tongaat Hulett has taken decisive steps to stabilise the business, strengthen its governance and financial structures, restructure its high debt levels and initiate processes to start reducing the debt to more sustainable levels. While early in the process, it is encouraging to note signs of progress emerging on several fronts, in terms of the positive steps being taken towards positioning Tongaat Hulett for its return to sustainable value creation for shareholders. Steady progress is being made on improving cash flow, with an increased focus on operational performance and cost curtailment. Tongaat Hulett has also met and exceeded its first debt reduction milestone.
For a more comprehensive analysis of Tongaat Hulett’s financial results, strategy and outlook, please refer to the full results announcement on www.tongaat.com.
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The contents of this short-form announcement are the responsibility of the board of directors. Shareholders are advised that this short-form announcement represents a brief summary of the information contained in the full announcement, published on the JSE and on Tongaat Hulett’s website.
Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement and shareholders are encouraged to review the full announcement as directed above. Investors and/or shareholders may request copies of the full announcement by contacting the company secretary, details of whom are set out in this announcement.
The full announcement is available for inspection at the registered office of the group, or the offices of the sponsor or copies of the full announcement may be requested during business hours from the company at no charge.
Lifting of the suspension on Tongaat Hulett’s shares
Shareholders were advised in December 2019 that the Board viewed the suspension of its shares on the JSE Limited (“JSE”) as a temporary measure until the company is in a position to provide sufficient further information to the market and that it is expected that the suspension will be lifted once the company has released its trading statement for the six-month period ended 30 September 2019.
Accordingly, the Board has entered into discussions with the JSE to request the potential lifting of the suspension of its shares. The JSE has agreed to lift the suspension with effect from Monday, 3 February 2020 to enable investors to absorb the financial information that is now available.
