Star 2021-05-25

Dineo Faku dineo.faku@inl.co.za SHARES of partly state-owned Telkom closed higher on the JSE yesterday after it upgraded its medium-term growth targets and said it would reconsider the suspension of dividends. This was after profits for the year to the end of March soared. Telkom, South Africa’s third-largest mobile operator, said it expected both revenue and earnings before interest, taxation, depreciation and amortisation (Ebitda) to grow in the mid-to-high single digits between the 2022 and 2024 financial years. The higher growth forecast for revenue came as service revenue was now the main driver of revenue, cushioning the impact of muted growth from fixed voice business, which now contributed 15 percent to the entity, said Telkom. It also projected capital expenditure of between R8 billion and R8.5bn a year over the…

Siphelele Dludla siphelele.dludla@inl.co.za THE SOUTH African liquor industry has warned the government of the potential negative impact on economic recovery and jobs if another ban on the sale of alcohol is imposed. Fears within the industry have been growing since three provinces officially declared a third wave of Covid-19 infections, as this could prompt the government to implement stricter lockdown measures. The tavern sector is worth over R60 billion annually, accounting for 80 – 90 percent of liquor sales in townships, and approximately 43 percent of total alcohol sales. A coalition of liquor traders has written to President Cyril Ramaphosa seeking his audience to help find sustainable solutions to combat the pandemic without banning alcohol. The National Liquor Traders Council (NLTC) and Liquor Traders Association of SA yesterday said any…

EDWARD WEST edward.west@inl.co.za THE PRICE of Barloworld’s shares increased 3.15 percent yesterday afternoon after it resumed dividend payments and returned a special dividend of 200 cents per share to shareholders. The international heavy equipment, automotive and food processing group declared an interim dividend of 137c per share, compared with no dividend declared in the first half of last year during the Covid-19 pandemic. This was after a strong balance sheet was maintained in the six months to March 31, and the cash balance was robust at R8.3 billion. Headline earnings per share leapt to 367c per share for the six months to March 31, compared with 70c in the first half last year. Group revenue of R28.6bn was up 6.5 percent, with revenue from continuing operations up…

Information and communications tech- nology group, Ayo Technology Solutions (AYO) said yesterday it expected a sub- dued performance in the six months to February 28, 2021, with the basic loss per share expected to be between 29.22 and 31 cents per share. The headline loss was expected to be between 24.19 and 25.99 cents per share, the group said in a trading statement. The decrease in earnings was attributed to lower revenues for the six months, driven by the declining overall trading environment, non-renewal of significant contracts, and a decrease in interest income. “While AYO was not immune to the Covid-19-induced economic decline, which affected every business in South Africa, I am confident the group is in a solid position to weather this storm and continue on its growth trajectory…

THE RAND yesterday rose to a one-year high amid a subdued dollar in spite of rating agencies maintaining their junk status and negative outlook on South Africa’s sovereign debt. The domestic currency strengthened 0.03 percent to R13.91 against the greenback by 5pm, its highest level since early January last year, on a positive growth forecast. The South African Reserve Bank (SARB) last week upwardly revised its 2021 growth forecasts to 4.2 percent, from an earlier projection of 3.8 percent. The rand appears to want to stay below the R14 mark around which it traded last week, despite an increase in global risk aversion. Investec chief economist Annabel Bishop said the rand continued to benefit from the dollar’s weakness, as investors fear increasing interest rates in the US. She said the…

Edward West edward.west@inl.co.za THE LEASE on the iconic former SAB World of Beer building in Newtown is up for grabs to the highest bidder. Broll Auctions and Sales hopes to attract an investor to secure a 32-year lease for use of a 5 215m² erf, zoned industrial, when the building goes on auction on Thursday. The building has been valued at R27 million. The World of Beer was opened by President Nelson Mandela in 1995 in celebration of SAB’s centenary year. The museum and conference venue helped to rejuvenate tourism in the city centre, hosting almost 50 000 visitors a year, before closing in 2019. The venue is owned by the City of Joburg. Its lease expires on December 31, 2053.…