Latest news with #R1.6bn
IOL News
26-05-2025
- Business
- IOL News
Barloworld's interim earnings drop amid onging Zahid Group takeover attempt
A 550 kVA Cat C15 diesel generator set being assembled at Barloworld Power's Boksburg facility. The group is experiencing tough trading conditions in line with macro-economic volatility in the markets where it operates, especially in its Russia business, where sales has decline due to the impact of sanction. Image: Supplied Barloworld, still the subject of a controversial takeover bid by Saudi Arabia-based Zahid Group and CEO Dominic Sewela, nearly halved its interim dividend to 120 cent a share (210 cents per share). This followed a 20.5% decline in headline earnings per share (HEPS) to 423.2 cents for the six months to March 31, with the results impacted by a weak performance in the Russia business due to the impact of sanctions in that country. Many JSE listed companies exited their businesses in Russia after the onset of the war in Ukraine, but Barloworld opted to retain Vostochnaya Technica (VT). Excluding VT, normalised HEPS was flat at 356 cents per share. Sewela said trading conditions were broadly aligned with their expectations of stable to modest economic growth, guarded optimism, moderated by cyclicality and subdued commodity markets. "Barloworld has shown remarkable resilience, especially excluding the VT results. The positive impact of the restructuring of Ingrain in 2024 is especially evident. We continue to navigate the evolving environment by pulling the levers within our control,' said Sewela in a statement. Regarding the Zahid takeover bid that was initially rejected by shareholders, an announcement about the requisite 90% acceptances from shareholders to be received in terms of a standby offer, or whether the bidding company wishes to waive the threshold, was expected to be made by June 30, 2025. Group revenue fell by 5.8% to R18.1 billion, weighed down by a significant reduction in VT revenue. 'The board remains vigilant in overseeing the investment in VT and will conclude and communicate an official strategy in due course,' the board said in the results.. Earnings before interest, tax, depreciation and amortisation (EBIDA) fell by 9.1% to R2.2bn. Excluding VT revenue EBITDA increased by 3%. The EBITDA margin fell to 12.4% from 12.9%. Excluding VT, EBITDA margin expanded from 11.9% to 12.5%. The group invested in working capital to support growth objectives and used free cash flow to reduce floor plans, which were more expensive than its available facilities. As a result, net debt increased by R1.6bn to R4.8bn. Net asset value per share increased to 9 235 cents from 9 111 cents. Solvency and liquidity remained strong. On the outlook, Sewela said that since the end of the first quarter, financial markets and commodities were very volatile, rapidly reacting to developments regarding US tariffs and associated uncertainties. 'In such an unpredictable environment, effective risk management and scenario planning are crucial, especially for complex supply chains as well as the fragile geopolitical state of affairs.' The board said several major South African mining corporations reported that, despite prevailing market turbulence, primary commodity trade routes were largely unaffected due to the exclusion of platinum group metals, coal, gold, manganese and chrome from tariff implications. 'We continue to assess the potential impact of tariffs on our iron ore, steel, and diamond customers.' Some reorientation and dislocation of physical trade flows was anticipated in the near future, which could present both opportunities and challenges for Barlworld's customers. 'The potential consequences of slower economic growth and a fragmented trading environment may be more significant. The future effects of tariffs on our business remains uncertain, and we are mapping out the medium- to long-term ramifications for our business,' the board said. The US Department of Commerce's Bureau of Industry and Security (BIS) had extended a deadline to September 2 for Barloworld to complete an investigation on potential export violations. VT's EBITDA fell 68.1% to R133 million. Operating profit of R104m decreased by 73.1% compared to the prior period. VT was expected to trade at breakeven levels as the structure was optimised for lower activity levels. VT was self-sufficient in terms of its funding requirements. EBITDA for Equipment Southern Africa fell 1.9% to R1.3bn. Operating profit declined 15.1% - the margin reduction resulted mainly from changes in the sales mix, from lower aftermarket activity.
IOL News
21-05-2025
- Business
- IOL News
Strong performance doubles Southern Sun's dividend and occupancy reverts to normal levels
Southern Sun Elangeni & Maharani A view from the Southern Sun Elangeni & Maharani in eThekwini. Lower event activity in the Durban International Conference Centre negatively impacted the occupancy of the group's hotels in the city in the year to March 31. Image: Supplied Southern Sun doubled its dividend after lifting adjusted headline earnings per share a sturdy 34% to 75.6 cents for the year to March 31, following strong growth in the Western Cape and in Gauteng. Income was up by 9% to R6.6 billion. Occupancy increased by 2.2 percentage points to 60.8%. Net debt reduced to R266 million. A 25 cents a share dividend was declared. The refurbishments of Southern Sun Cullinan and Sandton Towers – reopened in July 2024 and December 2024, respectively – along with upgrades to the restaurant and rooms at Southern Sun Rosebank and Southern Sun Sandton, were well received by the market, directors said. These improvements contributed to increased occupancy and rate growth in Cape Town and Gauteng during the latter half of the financial year. The 12% increase in operating profits, with finance cost savings, resulted in a 30% increase in adjusted headline earnings for the year to R1bn. 'The cost restructuring in 2021 enabled the group to deliver 14% EBITDAR (earnings before interest, tax, depreciation, amortisation, and restructuring), from 9% income growth,' the group directors said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading Total income comprised room revenue growth of 10% to R4.4bn, supported by average room rate growth of 5% and the increase in occupancy. Food and beverage revenue increased 6% to R1.6bn in line with occupancy growth, property rental income has grown by 19% to R272m, while other revenue has increased by 7% to R330m. The recovery of occupancies to the group's long-term average, especially in regions that had underperformed in the current year, presents an opportunity in the medium term, directors said. However, some regions hindered overall performance in the past year, particularly KwaZulu-Natal and Mozambique. In South Africa, corporate and leisure bookings rebounded after the May 2024 elections, but government demand outside of G20-related events was slower to recover. There were signs of improvement in the third quarter, but activity slowed again in the last quarter due to the uncertainty surrounding the approval of the national budget. Additionally, reduced event activity at Durban International Convention Centre negatively impacted the group's hotels in Durban, although trading in Umhlanga remained stable. In Mozambique, political unrest and rioting in Maputo since November 2024 significantly affected demand at the Southern Sun and StayEasy hotels. Although this situation stabilised after the inauguration of the president in January, 2025, and supported by the fact that the hotels are in a secure zone surrounded by embassies and security forces, occupancy levels continued to lag. 'The group intends to maintain the dividend payout ratio, and in the absence of major expansion capex, will continue to apply available cash resources towards share buybacks when appropriate,' the directors said. A 3% reduction in the weighted average number of shares reflected the impact of the share buyback implemented in 2024. Visit:
The Citizen
20-05-2025
- Business
- The Citizen
Mining fails to deliver jobs to local communities
Despite R72 billion in profits, mining towns report extreme unemployment and missing development funds. Mining companies are failing to create jobs for the communities where they operate, recent statistics released by the organisation, Mining Affected Communities United in Action (Macua), indicate. These show that the unemployment rate in communities situated near the biggest mining operations is more than 65%. This means mining firms are not fulfilling their role in the Social Labour Plan (SLP) to create jobs for local communities. Mining firms not fulfilling role in SLP 'Macua is deeply alarmed but not surprised by the latest unemployment data released [last week] by Statistics SA. 'Our research confirms that unemployment in communities located next to some of the wealthiest mining operations consistently exceeds 65%, with some areas having 82% unemployment rate. ALSO READ: Here's why Amplats will still pay Anglo R1.6bn a year after unbundling 'These figures dwarf the official national average. They expose a central truth that policymakers continue to ignore – that the growth of mining profits is not translating into jobs, justice or dignity for those most impacted by the extraction,' said Macua spokesperson Magnificent Mndebele. 'Government leaders parade Operation Vulindlela and sectoral reforms as solutions to inequality and unemployment. But our audits reveal the opposite. 'The mining sector, empowered by expedited licences, deregulation and policy favouritism, has become a site of elite enrichment, not shared prosperity. Site of elite enrichment 'With record profits of over R72 billion from just 11 audited mining companies, communities have seen less than 0.13% of that reinvested in their development. 'Our audits uncovered over R284 million in missing SLP funds across 11 sites, with more than 75% of committed development projects incomplete or undocumented.' ALSO READ: SA opened 159 new mines in five years, creating over 15 000 jobs Mining expert David van Wyk said Macua's report was an accurate reflection of what is happening in the mining-affected communities. 'I fully agree with Macua – mining does not create jobs. This country needs to move up into a post-mining economy. 'On a post-mining economy, I mean that we need not export strategic minerals necessary for manufacturing, for example iron, chrome, manganese, lithium and rare earth minerals. These are all required for manufacturing in general and for batteries and AI technologies in particular.' Need for focused state and foreign investment 'Then we need focused state and a foreign investment to kickstart a manufacturing base.' 'That means moving away from the low-wage economy. We have 60 million people either on low wages or unemployed. They cannot afford manufactured goods. This is a disincentive for manufacturing.' ALSO READ: Millions unaccounted for as ex-mine bosses face court over fraud 'We could, for example, manufacture batteries and cars [not assemble foreign cars as we are doing currently] but make electric vehicles as these are replacing combustion engines globally.' Van Wyk said dying mining towns should be repurposed into suppliers of gas and solar energy using old mine electricity substations to feed solar power from mine wastelands into the national grid, and extract methane from old mine shafts. Large-scale mining in decline As large-scale mining is in decline, the state should create the conditions for artisanal, smalland medium-scale mining and facilitate community-based industries to add value to the diamonds, gold and platinum extracted, such as by jewellery manufacturing for example, he said. National Association of Artisanal Miners spokesperson Zethu Hlatshwayo said mines were not equipping people with skills. 'So mines employ people from other areas.'
TimesLIVE
07-05-2025
- Health
- TimesLIVE
Tshwane restores electricity at Weskoppies Hospital after commitment to settle debt
The city of Tshwane has restored electricity at Weskoppies Hospital after the department of health committed to settling a R1.2m debt in overdue electricity charges. On Monday, the city cut off electricity supply due to the outstanding debt, sparking a backlash from the public. The department of health clarified payment processing was under way, but delays occurred due to the transition to the new financial year. 'The hospital normally makes additional payments to ensure continuous electricity supply, but this time it could not do so,' said health department spokesperson Motalatale Modiba. 'The owed amount is being processed for payment. Yesterday [Monday] the department processed R3.8m to the city [for] other facilities in Tshwane. The money was scheduled for payment [for Monday] as part of the payment run to service providers.' Tshwane mayor Nasiphi Moya confirmed the city would proceed with reconnecting power. The health department confirmed power was restored at the hospital on Tuesday after the agreement with the city. Moya said the city had previously agreed not to disconnect services but had to act due to nonpayment. 'The city did not act without due process,' Moya said. 'In good faith, we previously agreed not to proceed with disconnection, recognising the department of health's financial year-end in March and accepting their assurance payment would be made in early April. Despite many follow-ups, no payment was received, leaving the city with no alternative but to act.' The decision to disconnect electricity at the hospital was met with criticism, with many accusing the city of being insensitive to the potential impact on patients. Moya said the decision was not taken lightly. 'We are sensitive to the critical role hospitals play and deeply respect the work of healthcare professionals, and the duty of care owed to the most vulnerable in our society. However, the city has a responsibility to apply its credit control measures fairly and consistently across all customers, including government departments.' She assured residents the hospital's backup power system had been functioning during the disconnection, ensuring patient care was not severely impacted. 'I would not have allowed the disconnection if it would have left the facility without power and the subsequent impact on patient care.' Government departments owe the city more than R1.6bn. Moya emphasised the importance of recovering the funds to deliver quality services and restore Tshwane's financial health. She said it's the city's responsibility to apply credit control measures fairly and consistently across all customers, including government departments. 'It is only fair credit control measures are applied consistently, and all customers are treated equally. This approach strengthens the city's finances and protects the integrity of our service delivery systems.'
Zawya
09-04-2025
- Business
- Zawya
South Africa: Cape Town's luxury homes market skyrockets with $50mln sales in Q1
Sales of luxury trophy homes priced over R20m surged to a record high for the first quarter of this year. These sales have been predominantly in the high-end suburbs of the Atlantic Seaboard and Southern Suburbs, according to the Seeff Property Group. Propstats data shows a record 53 high value sales worth over R1.6bn in the first three months of this year. Half of this value comes from just 25 sales in the Atlantic Seaboard suburbs, the latest being a luxury 383m² apartment in The Aurum in Bantry Bay, sold for R65m by Seeff to a local buyer, says Ross Levin, licensee for Seeff Atlantic Seaboard. Seeff concluded nine high value sales in the first quarter, and Levin says wealthy buyers are currently seeing Cape Town property as a good store of wealth. Properties are selling much faster with sole mandate properties averaging just five weeks on the market. Even older properties which have been on the market for a while are now selling. Adrian Mauerberger and Bryan Ginsberg who sold the R65m apartment, say the majority of buyers are locals, but there is still a big semigration market. For sellers still contemplating, there is no better time than now due to a shortage of stock across all sectors and price ranges, say the agents. The iconic location and lifestyle is drawing buyers from all over. We're seeing an influx of locals, as well as buyers from Gauteng, KZN, the UK and Germany especially who are investing here right now, mostly cash buyers. Further sales include three homes in Camps Bay sold for R45m (local buyer), R21m (German buyer), and R33.75m (UK buyer, shared sale). Additionally, sales of R20m and R23m in Fresnaye (both local buyers), and at the Waterfront of R29.5m (local buyer), R33m (KZN buyer), and R29m (German buyer). As a result of the high value sales at least eight of Cape Town's top 10 suburbs for wealthy buyers currently boast a luxury house price of over R20m, the remaining two being over R15m. Here's a look at how Cape Town's luxury suburbs stack up in terms of average selling price for Q1 2025, according to Propstats and Seeff – with a comparison to what those prices looked like back in 2020: Clifton – R42m vs R37m Bishopscourt – R24.65m vs R15.84m Camps Bay – R24.14m vs R13.18m Llandudno – R23m vs R20.06m Waterfront – R21.61m vs R11.2m Bantry Bay – R21.58m vs R20.45m Higgovale – R21.51m vs R22.51m (massive R85m sale) Constantia – R21.07m vs R12.565m Fresnaye – R17.4m vs R15.07m Oranjezicht – R16.56m vs R9.97m Seeff also made six high-value sales in the Southern Suburbs, mostly Bishopscourt and Constantia Upper. Francois Venter, lead agent for Seeff in the area says here too, agents are seeing a mix of new and old listings selling, with his team scooping six recent high-value sales. These include a vacant plot in Bishopscourt sold for R20.25m (local buyer), along with homes sold in Constantia for R42m (Polish buyer), R24.7m (German buyer), and three sales to local buyers at R36m, R31m and R20.5m respectively. "We're seeing tremendous confidence in the property market right now," says Venter. "Cape Town is also the only city in the country that frequently ranks in top global city indices for tourism and property-value growth. "With its scenic location between mountain and sea—every bit as beautiful as the French Riviera or Monaco—and its cosmopolitan lifestyle and top-quality real estate, the Atlantic Seaboard is the jewel of South Africa's property market," says Levin. Venter says that Constantia and Bishopscourt likewise offer the allure of a picturesque setting with the mountain, lush greenery, and access to the nearby historic wine estates. Properties offer privacy, expansive gardens, and luxurious amenities such as tennis courts and swimming pools, and easy access to leading schools, combining country charm with urban accessibility. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
