Wescoal’s profit growth fails to impress investors
BUSINESS LIVE / 26 JUNE 2018 - 10:13 / ROBERT LAING
Wescoal’s share price fell 7.4% to R2 on Tuesday morning, with the jump in revenue and profit it reported following its acquisition of Keaton apparently failing to meet the market’s expectations.
The colliery group said it would distributed R35m as a final dividend to shareholders. With 450-million shares in issue, this implies a final divided of about 7.8c per share, which, with its 3.1c interim dividend, takes the total for its 2018 financial year to 10.89c.
Waheed Sulaiman. Picture: FINANCIAL MAIL
The Keaton deal helped Wescoal’s revenue grow 67% to R3.5bn and its net profit of R202m was nearly seven times the previous year’s R30m.
"The group is now strongly positioned to meet increased demand, both from Eskom as well as other domestic and export customers," CEO Waheed Sulaiman said in the results statement.
"Wescoal maintained BEE [black economic empowerment] ownership subsequent to shares issued for the Keaton acquisition and the effective BEE shareholding at 58%, of which 48% is secured for five years via the BEE structure."
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER