While the majority of market watchers continue to focus on developments at Naspers and Steinhoff, these were the announcements which caught our eye on Friday.
Net1 provides some [potential] good news for Blue Label
While Net1 continues to be tied up in the South African Social Security Agency (SASSA) debacle around the payment of social grants, the business delivered a pleasing third quarter update to the market. The share was up 19% (on 34 628 shares) with an announcement that revenue was expected to be 10% higher and “Fundamental Earnings Per Share” will be up 32%. Investors in Blue Label Telecoms will be interested in the announcement from Net1 saying that it has revalued its stake in cell operator Cell C higher describing an “improving operational performance”. Blue Label holds a significant stake in Cell C and will benefit from any improvement in the underlying Cell C operations.
Insimbi chugs along
A share which receives very little attention, Insimbi Refractory and Alloy Supplies has released a trading update which indicates that Earnings Per Share and Headline Earnings Per Share will be between 65% and 70% higher. While highly illiquid, Insimbi has delivered a 30% improvement in share price in the year-to-date.
Grand Parade loses another executive
The investment holding company announced the departure of its Chief Financial Officer Shaun Barends, adding to a list of senior executives leaving the business. Grand Parade is down 34% year to date.
Huge hitting its straps
Late on Friday, the telecoms group announced that it expected to EPS and HEPS to increase by 65 – 85% for the 12 months ended 28 February 2018. An interesting observation related to Huge Group is that the company has delivered a 1400% return over the past 5 years.
Stadio (and other education players) struggles along
The listed education players in South Africa continue to battle in the face of a struggling SA middle-class. Stadio – which was unbundled from Curro not too long ago – hit an intra-day 52 week low and is off 25% year to date. Competitor AdvTech is down 12% this year while Curro is off 30%.