AECI Limited Summarised interim financial results to 30 June 2021

 
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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