Famous Brands set for earnings growth boost
DURBAN - Africa's largest branded food services franchisor, Famous Brands, expects to report strong earnings growth for the six months to the end of August as result of no impairment charges relating to its subsidiary in UK.
Its basic earnings per share (Eps) are expected to increase by between 125percent and 131percent, to between 143cents and 175c, improving on last year’s loss a share of 572c.
“The anticipated increase in Eps relates primarily to recognition of an impairment of R874million in the Gourmet Burger Kitchen UK business in the prior comparable period. No impairment has been recognised for the current review period,” the group said in a trading statement on Friday. Last month Famous Brands also released a voluntary performance update for its South African and Rest of Africa and the Middle East operations, as well as for the GBK restaurants business, for the 26 weeks to August 25.
“GBK’s results are in line with management’s projections, with the business continuing to benefit from extensive operational improvements and the company voluntary arrangement restructuring programme completed in the past year,” the group said. Famous Brands will release its results on October 28.