We know that the JSE is shrinking every year in terms of number of listings, but Friday was notable for two intended delistings being announced.
To be fair, one of them is chemicals business Spanjaard which has a market cap of R29.5m. There is no point being listed as a company of that size, even though Spanjaard has been listed on the JSE since 1987. The primary rationale is that the company wants to do transactions without bearing the costs of issuing a circular!
The second was Stellar Capital Partners, which has been a disappointment of note for investors. Refer to today's feature article for more detailed information on the delisting.
Some small caps have done well from their listing on the JSE. One such example is Alaris Holdings, a technology company in the radio frequency ind ustry whose latest trading statement for the year to June 2021 confirms that HEPS will be between 40% and 60% higher than last year.
RCL Foods has updated its earnings guidance and shareholders will be pleased to note that the guidance has gone in the right direction, with HEPS expected to be between 721% and 740% higher, suggesting a range of 106.8 to 109.2 cents. The Sugar and Baking business units are delivering strong results for the group that is trading on a P/E of around 8.7x.
Dipula shareholders should note that there are corporate actions underway, with Resilient proposing to invest R1bn in Dipula provided the company simplifies its dual share structure. Dipula A shares will be repurchased by the company for either R6.61 per share (subject to adjustments) or for two B shares for each A share.
In the nine months to June 2021, Steinhoff's continuing operations managed to gro w revenue by 15%. Finalising the litigation settlement remains the priority, as the underlying businesses are posting pleasing results. Steinhoff's share price is up more than 120% year-to-date.
Massmart is still struggling, with the detailed results announcement noting that sales have been "subdued" in the past 7 weeks and that discretionary spending in the Game customer segment is "severely constrained" - not words that any investor wants to hear.
Day surgery business Advanced Health has struggled during Covid, with elective surgery postponements as a key trend during the pandemic. The Australian business generated a profit of R62.5m in the year to June 2021, while the local business lost R84.7m.
Grindrod has posted a headline loss per share of 0.7 cents and has not declared a dividend for the six months to June 2021.
In addition to the Stellar article, I've wri tten on Discovery growing earnings despite the mortality provisions from the pandemic. There is also a new Magic Markets episode, in which ETF expert Nerina Visser joined us to discuss advanced concepts and strategies around ETFs and ETNs - a must-listen for serious investors.
Finally, Chris Gilmour updates us on the macroeconomic and political news around the world.
Good luck for a new week!
The Finance Ghost
