Investment holding group Remgro on Thursday reported a 17,9% increase in headline earnings per share from 491,4 cents to 579,4 cents for the six months ended September.
It said the increase was favourably impacted by a share-repurchase programme, as headline earnings in rands increased by 14,2% from R2,459-billion to R2,809-billion.
The group declared an interim dividend per share of 133 cents, which was 14,7% more than the 116 cents per share declared for the previous comparable half-year.
The contribution of the tobacco interests, which represented 45% (2004: 42%) of headline earnings in the period under review, increased by 22,5%.
“This increase is mainly the result of Remgro’s higher indirect interest in BAT following the investment in 19 281 686 participation securities issued by R&R Holdings SA, Luxembourg during February 2005, effectively increasing Remgro’s interest in BAT from 9,4% [as at September 30 2004] to 10,2% [as at September 30 2005], as well as strong results reported by BAT,” Remgro said.
The contribution of the financial-services interests to headline earnings increased by 14,4% from R789-million in 2004 to R903-million.
With effect from April 1 2005, Absa was reclassified as an “asset held for sale” and consequently no longer equity accounted.
During July 2005, Remgro sold its entire interest in Absa to Barclays plc for R5,064-billion, realising an after-tax capital gain of R2,570-billion on the transaction.
“Dividends amounting to R123-million have been included in income during the period under review, while Absa’s contribution to headline earnings in 2004 was R228-million.”
The combined contribution of FirstRand and RMBH (Rand Merchant Bank Holdings) to Remgro’s headline earnings amounted to R780-million (2004: R561-million), an increase of 39%.
The contribution of the industrial interests decreased by 1,5%, mainly due to a headline loss reported by Dorbyl for the six months under review. The latter was mainly the result of STC payable by Dorbyl on the special dividend paid during the period.
Rainbow reported solid earnings growth and its contribution to headline earnings increased to R95-million (2004: R52-million). Distell and Medi-Clinic also continued to report improved results and their contribution to headline earnings was R57-million and R143-million respectively (2004: R42-million and R125-million).
The total contribution of the mining interests decreased by 6,1% to R77-million. This was the result of lower income from Trans Hex that contributed R16-million to headline earnings (2004: R28-million). — I-Net Bridge