Our data analytics suggest an increased interest in JSE-listed Huge Group over the past 4 weeks. We provide a snapshot of the company for your interest.

For a relatively illiquid mid-cap share, Huge Group has proven relatively resilient on the JSE up 2% in the past 6 months and down just 5% for the year to date. The company trades on a price to earnings multiple of 18 times earnings.

Cautionary announcement:

The company has indicated that it remains under cautionary with a potential category 2 transaction. This represents a deal that is classified as below 30% of the market capitalization of the business (Currently R1.5bn).

Annual General Meeting:

The company held an Annual General Meeting (AGM) on 30 August where 62% of the shares were represented. There were no significant votes against management beyond the 16% of shareholders voting against the authority to issue shares for cash.

Huge Telecom MD resignation

On 6 November, Gunter Engling (MD of subsidiary Huge Telecom) resigned. He is to be replaced by Huge Telecom CFO Robert Burger in an acting capacity. Burger joined Huge in August 2018 and was previously with Vodacom for 17 years where he was actively involved in the commercial credit operations.

Trading Update

The company released a trading update on 27 November 2018 saying: “Shareholders are accordingly advised that a reasonable degree of certainty exists that the Company’s results will reflect an increase in earnings per share (EPS) of between 55% to 70%, when compared to the EPS of 17.10 cents per share in the comparative period, resulting in EPS of between 26.50 and 29.07 cents per share, and an increase in headline earnings per share (HEPS) of between 40% to 55%, when compared to the HEPS of 19.10 cents per share in the comparative period, resulting in HEPS of between 26.74 and 29.60 cents per share.”