PEPKOR Holdings said improved trading in the year to September 30, relative to the 2020 financial year, was expected to result in headline earnings per share increasing by at least 20 percent to at least 78.6 cents, the group said in a trading statement yesterday.
Earnings per share were expected to increase by a minimum of 164.8c to at least 78.6c compared to the loss per share of 86.2c reported for the 2020 financial year.
The increase in earnings was also attributed to lease modification gains in terms of IFRS 16 as a result of favourable lease renewals and retail footprint consolidation in specific retail brands.
Finance costs reduced to a marked reduction in debt, while earnings were also impacted by impairment charges recognised in the 2020 financial year.
The Building Company subsidiary, which was not sold as planned, would be re-measured and represented as continuing operations in the group’s 2021 and 2020 financial results. The earnings guidance included the results from The Building Company.
Pepkor’s financial results were expected to be announced on or about November 19. Pepkor’s share price increased 2.6 percent to R21.63 yesterday afternoon.
BUSINESS REPORT ONLINE