AECI Limited Summarised interim financial results to 30 June 2021
July 28 2021 - 2:00AM
UK Regulatory
TIDM87FZ
AECI LIMITED
(Incorporated in the Republic of South Africa)
(Registration No. 1924/002590/06)
Tax reference No. 9000008608
Share code: AFE ISIN: ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
Summarised interim financial results to 30 June 2021, cash dividend declaration
and Board responsibility changes
REVENUE
+5% to R11 802m
Foreign & export revenue: 43% of total revenue
EBITDA
+23% to R1 453m
PROFIT FROM OPERATIONS
+70% to R948m
HEPS
+120% to 529c
GEARING
27% (1H20: 32%)
INTERIM CASH DIVIDEND
180c DECLARED
IMPROVED SAFETY PERFORMANCE
TRIR of 0,36
(0,42 in Dec '20)
AECI delivered a strong performance for the first half of 2021 (the period).
Our results demonstrated the benefits of our diversity, agility and our
strategic pillar structure. This bolstered our resilience as we recovered very
well from the COVID-19 effects that severely impacted results to 30 June 2020
(the prior corresponding period).
RECOVERY FROM THE EFFECTS OF COVID-19
As the world recovered from the initial wave of infection, the trading
environment began to normalise in the second six months of last year. This
improvement trend continued into 2021, albeit that the recovery has not
occurred at the same rate internationally and across all sectors of activity.
Whereas the US and Chinese economies are on rapid growth trajectories, others
are lagging. South Africa and Europe are among these.
The net asset value per share attributable to ordinary shareholders decreased
by 9% (from 10 537 cents at June 2020 to 9 556 cents in 2021) and basic
earnings per share increased by 117% (from 245 cents in 2020 to 531 cents in
2021). Headline earnings per share (HEPS) was 529 cents or 120% higher than the
240 cents reported last year.
SAFETY
The Total Recordable Incident Rate (TRIR), which measures the number of
recordable incidents per 200 000 hours worked, improved to 0,36 from 0,42 at
the end of last year. A Group-wide programme to reinforce the focus on holistic
wellness and safety was launched early in 2021. Some key elements of the
programme cover people engagement, behaviour-based safety, risk management and
process safety. Although the benefits of the programme are beginning to emerge,
much work remains to be done.
FINANCIAL PERFORMANCE
All Group businesses were operational in the half-year, unlike in 2020 when
restrictions associated with mitigating the spread and effects of the
coronavirus required some of our businesses and those of our customers to scale
back or suspend their activities.
In the prior corresponding period, management estimated that the impact of the
COVID-19 pandemic on revenue and profit from operations was R1 015 million and
R454 million, respectively. The negative effect on HEPS was estimated at 294
cents.
While there was a strong year-on-year recovery, some markets have yet to return
to pre-pandemic levels.
1H21 1H20
Revenue EBITDA Profit HEPS Revenue EBITDA Profit HEPS
(Rm) (Rm) from (cps) (Rm) (Rm) from (cps)
ops ops
(Rm) (Rm)
REPORTED 11 802 1 453 948 529 11 265 1 180 558 240
Restructuring 92 92 59
Impairment 69
Net profit from sale of (108) (108)
business
UNDERLYING EXCL. COVID-19 11 802 1 453 948 529 11 265 1 164 611 299
Estimated net impact of 1 015 454 454 294
COVID-19
UNDERLYING 11 802 1 453 948 529 12 280 1 618 1 065 593
% change
Revenue EBITDA Profit HEPS
(%) (%) from (%)
ops
(%)
REPORTED 4,8 23,1 69,9 120,4
Restructuring
Impairment
Net profit from sale of
business
UNDERLYING EXCL. 4,8 24,8 55,2 76,9
COVID-19
Estimated net impact of
COVID-19
UNDERLYING (3,9) (10,2) (11,0) (10,8)
Revenue increased by 5% to R11 802 million (2020: R11 265 million). Growth was
restricted by the key considerations outlined below and this also affected the
improvement in EBITDA and profit from operations:
* not all mining customers on the African continent have resumed their
operations; some remain on care and maintenance
* four large customers in the oil refining and industrial sectors did not
resume their operations in the period
* last year's sanitiser order at AECI Schirm did not recur
* the stronger average rand foreign exchange rate against the US dollar and
the Euro
EBITDA of R1 453 million was 23% higher than 2020's R1 180 million. Profit from
operations increased by 70% to R948 million (2020: R558 million).
Headline earnings increased to R559 million from R254 million in the prior
corresponding period.
Given the progress made by the Company in its recovery from the effects of
COVID-19, the Board has declared an interim ordinary cash dividend of 180 cents
(80% higher than the 100 cents for the half-year ended 30 June 2020).
CHANGES IN SIGNIFICANT BOARD RESPONSIBILITIES
Patricia (Patty) Mishic O'Brien joined the Board as an Independent
Non-executive Director with effect from 1 July 2021. She was appointed in
accordance with AECI's Board Nomination, Composition and Diversity Policy. She
will also join the Social and Ethics and the Integrated Chemicals Financial
Review Committees from 1 August 2021.
DIVIDEND
Declaration of interim ordinary cash dividend no. 175
NOTICE IS HEREBY GIVEN that on Tuesday, 27 July 2021, the Directors of AECI
declared a gross interim cash dividend of 180 cents per share, in respect of
the six-month period ended 30 June 2021. The dividend is payable on Monday, 6
September 2021 to holders of ordinary shares recorded in the register of the
Company at the close of business on the record date, being Friday, 3 September
2021.
A South African dividend withholding tax of 20% will be applicable to all
shareholders who are not either exempt or entitled to a reduction of the
withholding tax rate in terms of a relevant Double Taxation Agreement,
resulting in a net dividend of 144 cents per share to those shareholders who
are not eligible for exemption or reduction. Application forms for exemption or
reduction may be obtained from the Transfer Secretaries and must be returned to
them on or before Tuesday, 31 August 2021.
The issued share capital at the declaration date is 109 944 384 listed ordinary
shares, 10 117 951 unlisted redeemable convertible B ordinary shares and 3 000
000 listed cumulative preference shares. The dividend has been declared from
the income reserves of the Company.
Any change of address or dividend instruction must be received on or before
Tuesday, 31 August 2021.
The salient dates for the dividend will be as follows:
Last day to trade cum dividend Tuesday, 31 August 2021
Ex dividend trade Wednesday, 1 September 2021
Record date Friday, 3 September 2021
Payment date Monday, 6 September 2021
Share certificates may not be dematerialised or rematerialised from Wednesday,
1 September 2021 to Friday, 3 September 2021, both days inclusive.
By order of the Board
WJ Strydom
Acting Group Company Secretary
Woodmead, Sandton
28 July 2021
The full long-form announcement is available at:
https://senspdf.jse.co.za/documents/2021/JSE/ISSE/AFE/hy21.pdf
https://investor.aeciworld.com/s/2021-results-announcement.pdf
The contents of this short-form announcement are the responsibility of the
Board of Directors of AECI. This short-form announcement is only a summary of
the information in the full announcement and does not contain full or complete
details. Any investment decisions made by investors and/or shareholders and/or
noteholders should be based on consideration of the full announcement as a
whole. Investors, shareholders and noteholders are encouraged to review the
full announcement which is available on SENS and on AECI's website. The full
announcement is available for inspection at the registered office of AECI, at
no charge, during normal business hours from 28 July 2021. Copies of the full
announcement, at no charge, can also be requested by contacting the Group
Company Secretary: WJ Strydom, Private Bag X21, Gallo Manor, 2052,
wynand.strydom@aeciworld.com or groupcommunications@aeciworld.com.
REGISTERED OFFICE
First floor, AECI Place, 24 The Woodlands, Woodlands Drive, Woodmead, Sandton
SHARE TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited, Rosebank Towers, 15
Biermann Avenue, Rosebank, Johannesburg, 2196
Computershare Investor Services plc, PO Box 82, The Pavilions, Bridgwater Road,
Bristol BS99 7NH, England
EQUITY AND DEBT SPONSOR
Rand Merchant Bank (a division of FirstRand Bank Limited), 1 Merchant Place,
cnr Fredman Drive and Rivonia Road, Sandton, 2196
DIRECTORS
KDK Mokhele (Chairman), SA Dawson*, FFT De Buck, WH Dissinger?**, MA Dytor
(Chief Executive), G Gomwe??, KM Kathan (Executive), PM Mishic O'Brien??, R
Ramashia, AM Roets, PG Sibiya
* Australian ** German ? Zimbabwean ? American
AECIWORLD.COM
END
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