Latest news with #R2.4
IOL News
22-05-2025
- Business
- IOL News
Pick n Pay predicts significant recovery in headline loss per share
Pick n Pay Retail giant Pick n Pay reported an improvement in headline losses per share for the 52-week period to end February 2025, but its core store segment was still reporting trading losses.. Image: Supplied. Pick n Pay Stores' share price soared nearly 5% on Tuesday, after it predicted that its headline loss per share (HLPS) would improve by between 55% and 75% for the 52-week trading to February 25, which is indicative of its turnaround strategy starting to take effect. The HLPS for the major grocery store group that struck financial difficulties during the past two years would be between -77.49 cents and -43.05 cents for the period, compared with the HLPS of -172.21 in the same period last year. The share was trading at R27.43 late afternoon Thursday, 4.89% higher than the opening price, but sharply down from R53.85 three years ago, as the share price followed the declining financial performance of the group. Pick n Pay management said in a trading statement that the reduced losses at the HLPS level were due to better trading profit in its Pick n Pay stores, lower second-half interest charges due to the successful implementation of a two-step recapitalisation plan, and trading profit growth in the majority-held subsidiary, Boxer Retail, which listed on the JSE recently. 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 There was a substantial reduction in impairments, declining to less than R500 million in the 2025 financial year from R2.4 billion in 2024. 'While the guided result signals a very meaningful 2025 earnings recovery, the group continues to incur a loss within the Pick n Pay segment on a trading profit after lease interest basis, and the group cautions that this is likely to remain the case for some time,' Pick n Pay's management said. The annual results are due to be released on Monday. Visit:
TimesLIVE
21-05-2025
- Business
- TimesLIVE
We need to put our fiscal house in order: D-G Duncan Pieterse
Despite an underperforming economy and having this year's budget challenged twice from within the same cabinet in which he serves, finance minister Enoch Godongwana still has his real GDP growth projection on the upside for the medium-term. In his budget overview, he estimates South Africa's real GDP growth to be 1.4% in 2025, 1.6% in 2026 and 1.8% in 2027. This despite the International Monetary Fund (IMF) recently slashing South Africa's GDP growth outlook to 1%. It must be noted, as Godongwana told parliament in March, that the National Treasury's domestic GDP growth figures have consistently outperformed external estimations . In the foreword to the latest budget overview, Treasury director-general Duncan Pieterse said the budget was being tabled in a difficult international environment, characterised by trade volatility and policy uncertainty. 'As global growth has faltered, South Africa's economic outlook has also weakened, with GDP expected to grow by only 1.4% in 2025. Global risk and economic weakness reinforce the need for us to put our fiscal house in order.' Pieterse said South Africa's fiscal strategy remained on course so the government could 'spend less on debt-service costs and more on critical public services'. The government still planned to stabilise debt in 2025/26 at 77.4% of GDP and Pieterse said signs of progress were already emerging. 'For the first time since the 2000s, government is consistently running a primary surplus, where revenue exceeds non-interest expenditure. In time, this growing surplus will reduce rising debt-service costs. 'These costs will consume 22c of every rand collected in revenue in 2025/26 — money that could be better spent to build fiscal shock absorbers and fund health, education and security. Structural reforms are laying the foundation for future prosperity.' He said transformative changes would make it easier for the state and private sector to invest in the critical infrastructure needed to build the economy and create much-needed jobs. 'Yet success hinges largely on a willingness to act on all roadblocks that stifle investment. This budget projects consolidated spending growth averaging 5.4% annually, from R2.4- trillion in 2024/25 to R2.81-trillion in 2027/28.' The director-general said revisions to the March 2025 budget review projections reduce anticipated revenue and spending, but departments largely retain their baselines and critical service delivery areas are protected. 'Major reforms to state spending and the budget process are also under consideration. Public spending is inefficient. Previous spending reviews have identified tens of billions of rand in potential savings from poorly performing programmes that can be redirected in future budgets.'
IOL News
18-05-2025
- Business
- IOL News
Tshwane's 2025/2026 budget: A risky reliance on property tax revenue
The Freedom Front Plus expressed concerns about City of Tshwane's 2025/2026 budget, citing its dependence on property tax revenue and potential financial risks. Image: Jacques Naude/Independent Newspapers The Freedom Front Plus has warned that the City of Tshwane's fully-funded budget for the 2025/2026 financial year relies heavily on increased property tax revenue, making its funding status more of an assumption than a certainty. Deputy Mayor Eugene Modise last week presented a R54.6 billion budget, comprising a R2.4 billion capital budget and a R52.2 billion operational budget, describing it as pro-poor and focused on service delivery. The multiparty coalition partners in Tshwane, including the ANC, EFF, and ActionSA, praised him for presenting a fully funded budget that had been endorsed by National Treasury. 'This is the first fully funded budget since 2022 and represents a significant milestone in our turnaround strategy for Tshwane. It is a clear indication of our coalition commitment to responsible governance, sound financial management and inclusive service delivery to all communities in the City,' the parties said. FF Plus councillor Peter Meijer criticised the funded budget, saying it is primarily based on increased property tax revenue, which has already drawn criticism from the party. 'At this stage, it can only be considered an assumption since the process surrounding the revision of the valuation roll, which determines the increase in property tax collection, has not yet been finalised,' he 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 ✕ Meijer noted that the budget speech's mention of settling Eskom debt has been praised, but argued this is simply compliance with a court order, not an actual achievement. 'If the court order is not complied with, it could plunge Tshwane into a financial crisis,' he said. He also said reducing the debtors' book from nearly R30 billion to R25 billion is being touted as a success, attributed to improved revenue recovery and a recent overdue debt write-off scheme. 'However, since no concrete figures have been provided, the question remains whether collection efforts have been successful in comparison to the debt write-off, and what impact this has on cash flow,' he said. He warned that if creditor obligations are not settled, they could undermine any perceived financial progress and limit Tshwane's ability to allocate resources effectively. "Persistent creditor liabilities can also affect investor confidence, as they signal potential liquidity challenges. Without clear strategies for settling these debts while maintaining financial stability, the risk of cash flow shortages increases—making budget sustainability a pressing concern,' he said. Kholofelo Morodi, Member of the Mayoral Committee for Corporate and Shared Services, welcomed the fully-funded budget, highlighting its commitment to critical infrastructure projects that will improve electricity stability, connectivity, and public safety. Morodi, who is a political head for Region 4, said the investment demonstrates a commitment to providing residents with reliable infrastructure that meets their needs. 'Key initiatives such as the Eldoraigne, Olievenhoutbosch, Noordwes, Claudius, and Cornwall Hill Substations, as well as the Louwlardia supply augmentation, play a crucial role in reinforcing our power network,' she said. She added that installing remote terminal units and fibre will enable real-time monitoring and improve service responsiveness, while high-mast lighting will enhance community safety by illuminating public spaces. The multiparty coalition parties said: 'We particularly commend the decision not to rely on borrowing. The positive revision of the City's credit outlook, and the transparent and consultative process followed in arriving at this credible financial plan.'
IOL News
16-05-2025
- Business
- IOL News
Tshwane coalition approves R52. 2 billion draft Budget for 2025
City of Tshwane's New Budget: The Coalition's commitment to responsible governance and service delivery The coalition governing the City of Tshwane has strongly approved the newly tabled budget for the 2025/26 financial year, saying the budget is a product of cooperation, leadership, and a shared vision of building a better Tshwane for all. In a joint statement issued on Friday by the ANC, EFF, ActionSA, AIC, DOP, PA, PAC, ATM, PAC, and GOOD, the coalition partners highlighted the budget's alignment with responsible governance, fiscal discipline, and inclusive service delivery. A Historic Milestone The coalition parties commended the City of Tshwane for presenting a fully funded and credible budget, officially endorsed by the National Treasury. The parties said this is the first fully funded budget since 2022, which signifies a major turnaround in the city's financial health. 'This is a clear demonstration of our coalition's commitment to responsible governance, sound financial management, and delivering services equitably to all communities,' the statement read. The R52.2 billion operational budget, complemented by R2.4 billion for capital projects, embodies shared priorities such as infrastructure development, economic growth, and social upliftment. Notably, the budget's conservative approach excludes reliance on borrowing, positively impacting the city's credit outlook and fostering investor confidence.
The Citizen
16-05-2025
- Business
- The Citizen
Tshwane's R54.6bn budget draws mixed reactions
Tshwane deputy mayor Eugene Modise's 2025-26 budget promises no new borrowing and a fully funded plan. There has been mixed reaction to the City of Tshwane's budget for the 2025- 26 financial year. Deputy mayor and MMC of finance, Eugene Modise, delivered the budget for the 2025-26 financial year which he said National Treasury had endorsed as credible and fully funded. Modise described the budget as a turning point and said the draft included an allocation for the capital budget of R2.4 billion and an operational budget of R52.2 billion. 'Fully funded without borrowing' His budget also included a total of R7.4 billion grant allocations for operational grants and capital infrastructure through the newly introduced Urban Development Financing Grant. 'It is important to note that this budget has been fully funded without borrowing. While no borrowing is planned for the 2025-26 financial year, this may be reconsidered in future, subject to the city's financial recovery and improved credit rating,' he said. Modise's proposed tariff adjustments include electricity tariffs to rise by 10.1%, below the 11.32% bulk tariff increase from Eskom, while water charges will increase by 13%, lower than Rand Water's 15.13% hike. ALSO READ: Here is how Tshwane will be spending its R54.6 billion budget Sanitation tariffs will increase by 6%, followed by waste removal tariffs which will rise by 4.6%. 'Nothing new' Republican Conference of Tshwane councillor Lex Middelberg didn't believe Modise's claim that Treasury had endorsed the budget. 'Treasury doesn't endorse budgets. The budgets do not make allocations for the release of R29 billion on creditors that have heaped up from previous years. Middelberg said the budget as a whole was an adjusted version of budgets of previous financial years. 'There's nothing new in there, the spending patterns in the city do not change. Same old, same old,' he said. Praise from ActionSA Action SA leader Herman Mashaba welcomed the tabling of the first fully funded budget since 2022, led by one of his own, Nasiphi Moya. He also welcomed the R780 million allocated to economic development and spatial planning, saying it aligned with the city's economic revitalisation strategy, which aims to attract over R17 billion in investment and create 80 000 jobs. ALSO READ: The state of the capital: Three major problems Tshwane promises to fix 'ActionSA believes this budget acknowledges the severe infrastructure challenges inherited from years of chronic mismanagement and underfunding, which brought the city to the brink of collapse and represents a commendable turning point through targeted investment.' Mashaba said the party was proud of the City of Tshwane's remarkable progress in achieving the goals set out in its turnaround strategy. DA rejects budget DA Tshwane spokesperson for finance Jacqui Uys said her party would not support the new budget. Uys said the budget put the responsibility of financial rescue instability onto residents, treating them like cash cows. 'The DA maintains that the city must increase the section of property value not included in rates and taxes to R450 0o0 to bring relief to your pockets. Instead of assisting poor households who cannot afford almost R500 per month for waste removal, the ANC-led City of Tshwane has opted to introduce a punitive tax of almost R200 on these households if they choose not to use the city's services,' she said. NOW READ: City of Tshwane says overtime cap won't stall emergency services
