The JSE continues to be under pressure in Tuesday trade as broad-based selling weighs on the bourse.
Here are some of the stories from Tuesday in the small and mid-cap sectors:
Strong results from Wescoal
The coal and resources group reported a strong set of results with Headline Earnings Per Share up 311% and strong improvement in cash-flow and dividend. Waheed Sulaiman Chief executive officer told shareholders: ‘I’m delighted to report that Wescoal has grown into a substantial mining and resource trading enterprise having successfully integrated Keaton. The business continues to seek ways to increase its presence as a key component of our country’s energy supply chain while looking at various diversification strategies including the export markets.’
Steady performance from Omnia
Despite a tough mining environment and volatile currency, chemical group Omnia delivered a credible set of full-year results with revenue up 7% and headline earnings per share up 12%. Omnia trades on a forward price to earnings multiple of 9.6 times earnings and offers a 2.95% dividend yield.
Long4Life acquires Rage
The investment holding group has added another acquisition to its portfolio with the acquisition of Rage Distribution. Rage is an apparel business which reportedly has 1.5m active customers across 555 with a further 90 stores being planned. Long4Life will pay up to R3.9bn for the business which presently generates R263m in after tax profit.
4Sight expands US footprint
Technology group 4Sight Holdings informed the market that it had expanded its operations in the US through Digitata Networks Corporation. The SENS from 4Sight indicated that it was now servicing a “Tier 1 Telco in the region”. 4Sight is currently down 60% year to date.
Ferrochrome price dip might impact Merafe
Merafe Resources informed the market that the European Benchmark pricing for ferrochrome would be 2.8% lower for the third quarter. This is in comparison with the second quarter of 2018. Merafe presently trades on a price to earnings multiple of 7 and offers a 7.5% dividend yield.
Go Life reports profit
Nutraceutical and healthcare group Go Life International has delivered a profit for the 12-month period ended 28 February 2018. The group reported a profit of $575 445 for the 12 months on $1.8m in revenue. The company sits with $572 724 in cash at the end of the reporting period. Go Life has a market capitalisation of R630m.
York Timbers appoints CFO
Gerald Stoltz has been appointed as the official CFO of the timber company after previously being appointed in an acting capacity since December 2017. York trades on a price to earnings multiple of 1.6 times earnings and is down 15% year to date.
Argent makes acquisition
Industrial group Argent has announced that it will pay GBP4.6m for the entire share capital of Fuel Proof Limited and Roll-Tec Safety Limited. Argent presently trades on a price to earnings multiple of 6.25 and offers a 5.74% dividend yield. The share trades at R3.75 with a reported net asset value of R10.50/share. Argent is down 20% year to date.
Pallinghurst changes to Gemfields but …
The company held a combined Annual General Meeting and EGM to confirm the name change from Pallinghurst to Gemfields Group Limited. The company did however have pushback against its remuneration policy which was 29.6% of the shareholders present, voting against the proposed remuneration policy.
Sandown releases maiden full year results
Investment holding group Sandown Capital – which was spun out of Peregrine recently – announced its first set of full year results for the year ended March 2018. The company reported a net asset value (NAV) of R4.87/share with the share trading at R3.33/share.
AEP acquires viable asset
AEP Energy Africa has confirmed that it has identified and made a bid for IberAfrica for $61m. According to the SENS, IberAfrica accounts for roughly 5% of the electricity supplied in Kenya.