Pepkor hit by R1.2bn writedown as building market contracts

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 63%

South Africa News News

The writedown of its Building Company could result in earnings falling by about a third, due to a slowdown in the market

Pepkor, previously Steinhoff Africa Retail, said on Thursday earnings for its year to end-September may fall by a third due to a contraction in the building materials market.

The company has written down its specialised materials company, The Building Company, by R1.2bn, with earnings per share expected to fall by between 22.1% and 32.1% compared with the 83.6c in the prior comparative period. The group, whose brand’s include Pep, Ackermans, Incredible Connection and Timbercity, was a wholly owned subsidiary of Steinhoff until it was listed on the JSE in September 2017.

The Building Company represented 13% of Pepkor’s revenue and 3% of operating profit in the 2018 financial year. Pepkor has reported that its major business segments had performed well, saying its defensive discount and value-market positioning had paid off. Headline earnings per share was expected to rise by 7.7%-17.7% compared with the prior comparative period. Heps strips out one-off items, such as impairments.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

DIANNA GAMES: Deals worth R1-trillion signed at Africa’s investment marketplaceThe more than 2,000 delegates at the Africa Investment Forum, an initiative of the African Development Bank (AfDB), needed no call to action. 🔒
Source: BDliveSA - 🏆 12. / 63 Read more »

Red tape hits EU firms as market rules ‘overshoot target’Calls grow for tweak to a regulatory regime that has more than 1.7-million paragraphs of text
Source: BDliveSA - 🏆 12. / 63 Read more »

PSL to increase clubs' grants after record breaking billion rand revenue -Khoza - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.For the first time in the history of professional football in Sub-Saharan Africa, the Premier Soccer League has declared a record R1 billion in revenue for the 2018/2019 financial year.
Source: SABC News Online - 🏆 32. / 51 Read more »