South African investment trust Hosken Consolidated Investments Limited, which is suspended from the JSE Securities Exchange South Africa pending the outcome of court action over its plans to delist, on Monday reported diluted headline earnings per share of 2,65 cents for the year ended March 31 from a diluted headline loss per share of 32,02 cents the year before.
Releasing the results, HCI said that its proposed delisting from the JSE remained in abeyance until the finalisation of minority shareholder Consilium Capital’s application in the High Court of South Africa.
HCI announced its proposal to delist in May last year, offering minority shareholders R3,50 per share, but the offer was criticised as being based on a massive negative value put on e.tv, its main investment, in which it holds a 66% stake.
Critics said e.tv had been sustaining losses in its start-up phase, but was about to turn profitable. HCI attributed its improved results to a turnaround at e.tv as well as reduced finance costs resulting from a reduction in debt.
Basic earnings per share rocketed to 117,5 cents from a 285,53 cents loss the year before.
Revenue from continuing operations rose to R862,6-million from a comparable R508,6-million, with pre-tax profit jumping to R168,4-million from a loss of R869,2-million.
Headline profit came in at R3-million from a loss of R32,1-million. About R520,4-million of HCI’s revenues came from its media and broadcasting operations.
HCI said that continued growth in revenue during the year and stable operating costs had enabled e.tv to record a profit for the first time. The station had contributed R21,02-million to the group headline profit.
It said that the key challenge facing the station would be to increase market share and revenue while maintaining an efficient cost structure. — I-Net Bridge