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Johannesburg - Astrapak said on Wednesday that combined headline earnings per share (Heps) from both continuing and discontinued operations in the year ended February is expected to be between 40% and 60% higher than those reported in the comparative period, which will result in anticipated combined Heps of between 100.9c and 115.3c, from 72.1c in 2009.
Heps from continuing operations is expected to be between 80% and 100% higher than those reported in the comparative period. This will result in anticipated Heps of between 112.2c and 124.6c compared with 2009's 62.3c.
Earnings per share (EPS) from continuing operations is expected to be between 175% and 195% higher than those reported in the comparative period, which will result in anticipated EPS from continuing operations of between 106.2c and 113.9c compared with 38.6c for the reporting period.
Combined EPS, from both continuing and discontinued operations, is expected to be between 150% and 170% higher than that reported in the comparative period, which will result in anticipated combined EPS from both continuing and discontinued operations of between 88.8c and 95.9c (2009: 35.5c) for the reporting period.
Astrapak said the results in the comparative period were negatively impacted by certain once-off items of expenditure and the reversal of deferred tax assets totalling about R20m.
This resulted in a much lower base being established for comparative purposes and the improvements in EPS and Heps as reported in this announcement should be normalised for these items to determine the true growth from operational activities.
The strategy of extracting value by improving internal efficiencies and adopting best practices continues to reap rewards. In addition, much improved cost and working capital management, the cash proceeds from disposals, improved cash generation and capital allocation, assisted by a lower interest rate environment, all had a positive impact on the results for the reporting period.
Astrapak also announced that it has disposed of certain of its flexible operations to Afripack Consumer Flexibles. In addition to the disposal transaction, which has been successfully concluded, Astrapak also advised that it had entered into separate sale agreements in terms of which Afripack would also acquire the two properties occupied by Cape Wrappers and the group's equity interest in its Mauritian Joint Venture for a combined purchase consideration of R30m.
Continuing with its stated strategy to focus on its core strengths, the group also advised it has disposed of its equity interests in Izakhamzi, ITT and IET for a combined consideration of R6.9m to the existing management shareholders of these companies.
The disposal has been completed and the purchase consideration settled, while the disposal of the group's equity interest in ITT and IET is still subject to the fulfilment of certain conditions precedent and the board anticipates that these will be fulfilled in the near future.
The group's results are expected to be released on 10 May 2010.
- I-Net Bridge
