Zeda has delivered a “stellar” performance in its maiden year as an independently listed company, and its share price has surged more than 10%, to R12, yesterday, the company says.
In a trading statement, it said revenue and earnings before interest tax depreciation and amortisation had increased by more than 10% and 15% respectively.
The performance, which saw operating profit margins maintained in the year to September 30, underpinned by the integrated mobility business model, was in spite of a challenging operating environment, Zeda said.
Earnings per share (EPS) was expected to increase between 30% to 35%, while headline earnings a share (HEPS) was expected to increase between 15% to 20%, compared to the previous year.
This was in spite of a rising interest rate environment that led to an increase in net finance costs of more than 60%, or more than R230 million.
Earnings were also supported by a lower effective tax rate, mainly due to the reversal of prior years over-provisions, with a net positive tax benefit of R53m.
The difference between EPS and HEPS related to the disposal of a property that was reported in the first half.
The group had R1.55 billion unbundling legacy debt that attracted the highest interest rate, at prime plus 1%, which was settled in September 2023, two months before schedule, to close the year with a net debt lower than R5.1bn.
The annual results were expected to be released on November 27.