Star 2023-06-15

But financiers had wavered the breached covenants and had been very supportive, the group says RETAILER Spar’s debt woes were in the spotlight yesterday after it posted its interims and said it had breached debt covenants with banks, due to the weakening of the rand and translation of foreign debt into reporting South African currency. Its financiers had wavered the breached covenants and been very supportive, it said. For the six months ended March 31, 2023, the group said diluted headline earnings per share declined by 30.2% to 447.7 cents as it reported lower sales in South Africa and Switzerland. Turnover for the group increased by 7.9% to R72.9 billion. Spar said on March 31, 2023, owing to the weakening of the rand and translation of foreign debt…

SOUTH Africa’s captains of industry have urged the government to resolve the diplomatic fallout with the US, as it threatens billions of rand in trade and investment, which could cripple an already subdued economic growth trajectory. This comes as Business Confidence Index (BCI) plunged to its lowest in nine months in South Africa amid lower trade volumes, fewer tourists and a weaker rand. South Africa is on the verge of losing the benefits of the African Growth and Opportunity Act (Agoa) from the US government, due to the country’s decision to remain neutral in Russia’s invasion of Ukraine. The SA Chamber of Commerce and Industry (Sacci) yesterday said the economic sensitivity of South Africa to international trade relations was evident from the substantial swing from a surplus on the trade…

THE NATIONAL Assembly's approval of the National Health Insurance (NHI) Bill has been met with an outcry and threat of litigation by the Solidarity Movement and other critics. The approval of the bill means the ANC-led government is one step closer to its plans for achieving universal health coverage. According to Parliament, the NHI Bill seeks to provide universal access to healthcare services in the country in accordance with the National Health Insurance White Paper and the Consti- tution. “The bill envisages the establishment of a National Health Insurance Fund and sets out its powers, functions, and governance structures. The fund will purchase healthcare services for all users who are registered with it,” it said. The bill still needs to be reviewed by the National Council of Provinces, SA’s second…

SHAFTESBURY Capital’s integration was progressing well, CEO Ian Hawksworth said in a trading update on the annual general meeting that was held yesterday. The merger of Capital & Counties Properties and Shaftesbury to create Shaftesbury Capital was completed on March 6. Shaftesbury Capital’s property portfolio is located in London’s West End, focused primarily on Covent Garden, Carnaby, Soho and Chinatown. On the JSE Shaftesbury’s share price gained 1.81% to close at R28.12 yesterday. “We are pleased with the first 100 days of activity across Shaftesbury Capital ... We are encouraged by operational progress, prospects for our prime West End portfolio and the benefits we are seeing from the combined platform,” he said. Actions to integrate undertaken so far were expected to result in annualised cost savings of £7.5 million…

CONSUMERS in South Africa continued to feel the impact of elevated inflation and high interest rates in April as retail trade sales fell for the fifth month in a row as the adverse effects of the prolonged power crisis weighed on general dealers, food and beverages retailers. Data from Statistics South Africa (StatsSA) yesterday showed that retail trade shrank by 1.6% year-on-year in April 2023, following a downwardly revised 1.5% fall in March. This marked the fifth consecutive month of decline in retail activity and at the quickest pace since June 2022, and also higher compared with market estimates of a 1.4% decrease. StatsSA said that five of the seven retail categories included in the index declined year-on-year. StatsSA’s deputy director for distri- butive trade statistics, Raquel Floris, said the…

NASPERS expected its headline earnings per share to slump by between 82.1% to 75.1% in the year to March 31, but remains committed to bring its businesses to profitability by first quarter of 2025. Its businesses had “scaled meaningfully and each segment showed a clear path to profitability” following years of investment and significant growth, the group said in a trading statement yesterday. Meanwhile, its listed Europe-based subsidiary Prosus said it expected headline earnings a share would decline between 80.9% and 74% for the year to March 31. The financial results of Prosus almost completely account for Naspers’s results. Prosus said in a trading statement yesterday that the decrease in earnings per share related to lower contributions from equity-accounted investments of about $4.1 billion (R76.18bn) or 233 US cents…