Barloworld – Trading Update
Key message: Barloworld released a Trading Update. HEPS guidance for continuing operations in 1H FY20 has gone negative. We adjust our forecasts based on the new information.
PPC: FY21 Earnings Examined
Key message: We look at FY21 potential earnings as lockdowns ease. A loss at the HEPS level is likely, but debt covenants are not breached.
Nampak 1H FY20 Results
Key message: Weakness in all regions before any Covid-19 impact means cash flows remain under pressure, and currency liquidity in Angola and Nigeria is deteriorating. Debt covenants remain a concern, with a relaxation most likely required for year-end.
WBHO – Trading Statement
Key message: A big negative surprise in Australia…….again. An announcement that Probuild has had an unsolicited offer may signal a full retreat from Australia – and that is probably the right move.
Raubex FY20 Results
Key message: There is a relatively high probability that government will use SANRAL to kickstart infrastructure spending as a stimulus for the economy. Long overdue, this would boost the road construction sector.
Auto Anemometer: New Vehicle Sales – May 2020
Key message: Vehicle sales recover slightly in May after a total collapse in April.
Imperial Logistics Investor Day and Trading Statement to March
Key message: Management point to an unsatisfactory result even before the lockdown. Continued portfolio rationalisation points to a struggling core business – hence the desire to grow into a new sector (international freight management).
Bidvest: Trading update – 10 months to April 2020
Key message: Remarkable ability to cut operating costs as revenue falls due to Covid-19. The portfolio will have its ups and owns but generally looks set to sail through the Covid era unscathed.
Afrimat – FY20 Results
Key message: High iron ore prices boosted results, but the Demaneng mine is now producing at full production. Acquisition opportunities are available, with the announcement post results of an offer for Unicorn Capital Partners – with the target asset the Nkomati Anthracite Mine.
Super Group – Further earnings adjustments
Key message: We make further adjustments to our forecasts as a gradual easing of lockdown restrictions occurs.