AECI LIMITED
Incorporated in the Republic of South
Africa
(Registration number: 1924/002590/06)
Share code: AFE ISIN:
ZAE000000220
Hybrid code: AFEP ISIN: ZAE000000238
Bond company code: AECI
LEI: 3789008641F1D3D90E85
(AECI or the Company or the Group)
TRADING STATEMENT FOR THE FINANCIAL
YEAR ENDED 31 DECEMBER 2021
In compliance with the JSE Limited Listings Requirements,
shareholders and noteholders are advised that, for the financial
year ended 31 December 2021 (the
period or the current period), AECI’s headline earnings per share
(HEPS) is expected to be between 1 090
cents and 1 135 cents, that is
between 24% and 29% higher than the reported 880 cents for the financial year ended
31 December 2020 (the prior
corresponding period). Earnings per share (EPS) is expected to be
between 1 110 cents and 1
135 cents, more than 100% higher than
the reported 127 cents in the prior
corresponding period.
The significant contributors to the expected improvement in the
period were as follows:
- Trading results reflected a strong recovery from the effects of
COVID-19 as the Group returned to near pre-pandemic levels of
activity. This recovery was achieved notwithstanding steep
increases in certain raw material prices, supply chain
interruptions and volatile demand patterns.
- In 2020, R821 million (or 778
cents in EPS terms) of the R1 530 million goodwill
recognised at the acquisition of AECI Much Asphalt was impaired.
There were no goodwill impairments in the current period.
AECI has maintained its solid financial position, with good cash
generation, and has repaid a large portion of its term debt from
the cash generated. Net borrowings as a percentage of equity
remained stable.
AECI is currently finalising its results for the period and it
is expected that these will be released on the Stock Exchange News
Service on or about Wednesday, 2 March 2022.
The financial information on which this trading statement is
based has not been reviewed, reported on or audited by the
Company’s external auditor. The information provided does not
contain, and should not be construed as containing, any
forward-looking statements or projections of any nature for the
financial year ended 31 December
2021.
Woodmead, Sandton
23 February 2022
Sponsor and Debt Sponsor: Rand Merchant
Bank (A division of FirstRand Bank Limited)