Star 2023-03-28

FINANCE Minister Enoch Godongwana has placed Habib Overseas Bank under curatorship to deal with governance and operational failures, while other banks in the “healthy and robust” local banking sector are unlikely to be impacted. Habib Overseas has five branches including Oriental Plaza, Laudium, Lenasia, Cape Town and Durban. The curator has closed the Bank for 72 hours or a longer period as the curator deems appropriate. Godongwana said the curatorship was not related to recent difficulties with banks in the US and Switzerland, and that Habib Overseas Bank was also not related to Habib Bank AG Zurich, which also operates in South Africa, but is a different bank and not under curatorship. The curatorship followed recommendations by the Prudential Authority (PA) of the SA Reserve Bank (SARB). In May last…

Consumption expenditure predicted to shrink by more than half this year MOMENTUM Investments has warned that South African consumers could face a prolonged period of dwindling disposable cash, as sentiment remains weak across all income groups due to bleak economic conditions. In the Consumer Pulse report yesterday, Momentum also forecast that consumption expenditure would shrink by more than half this year on the back of weak job creation. This comes as the South African Reserve Bank (SARB) is expected to hike its benchmark lending rate by a further 25 basis points on Thursday to curb inflation, which rose from 6.9% to 7% in February. This would be the ninth consecutive rates hike since November, 2021, and would bring the repurchase rate up to 7.5% from 3.5% in November, 2021,…

WOOLWORTHS Holdings Limited (WHL) has finally closed the chapter on its ill-fated Australian purchase of David Jones, placing the retailer on a stronger footing. The retailer informed its shareholders yesterday that it had successfully concluded the sale of shareholding in David Jones to an Australian equity fund, Anchorage Capital Partners, after years of underperforming. Woolworths bought David Jones in 2014 for about R21.4 billion, but the investment soured leaving it struggling with debt and a poor performance. Last year the group announced that it was looking to sell David Jones despite its performance having improved. Woolworths cut David Jones store space in order to improve cost controls and trading densities, as well as renegotiate leases. At the time, Woolworths CEO Roy Bagattini said: “The strategic rationale at the time…

SOUTH Africa has been seeing anecdotal accounts of solar panel shortages, largely contained to residential and small commercial installations, according to the South African Photovoltaic Industry Association (Sapvia). The demand for alternative energy solutions in South Africa is surging amid a power crisis and as the country faces an 18.65% energy tariff increase primed to take effect from April 1, 2023. Sapvia CEO Dr Rethabile Mela- mu, in response to a Business Report enquiry on reported solar shortages in the country, said: “Large Commercial and industrial Engineering, Procurement and Construction procure panels in the multi-MW scale and would have predicted and planned for any increased demand. “However, no formal communication from either our panel original equipment manufacturer members or from our supplier and distributor members have been circulated.” She…

THE ADvTECH Group grew the operations of all its private education brands in the year to December 31, and raised normalised earnings per share by 20% to 145.7c. Operating profit for the private education provider that has grown steadily over more than five years increased by 20% to R1.33bn. A full-year dividend of 60 cents per share was declared compared to 50c previously. A sound balance sheet and reduced borrowings meant the dividend was at the same cover ratio as the previous year. CEO Roy Douglas said in a telephone interview the performance had come from continued enrolment growth and operating profit enhancements, particularly in their other African markets. The rest of Africa tertiary division, in particular, continued to increase its presence and number of placements in 19 countries,…

ASCENDIS Health’s headline loss per share improved 75% to -29.4 cents in the six months to December 31, a period that marked the first time since listing in 2013 that it has an unleveraged balance sheet. Further signs of being restored to financial health included the operating loss more than halving to R123 million, while net finance costs reduced by R354m. Revenue maintained at R777m. Gross profit fell 9% to R312m. Net asset value per share increased by 34% since June 30, 2022, following the disposal of Ascendis Pharma for R444m. During the period R101.5m was raised in an oversubscribed rights offer. The senior debt was fully repaid post-period end. “Ascendis and its subsidiaries have undergone fundamental change across the business and the team has worked to…