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2020-02-20 07:05:00 AM

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AIP: ADCOCK INGRAM HOLDINGS LIMITED - Unaudited group financial results and cash dividend declaration for the six month period ended 31 December 2019
AIP: ADCOCK INGRAM HOLDINGS LIMITED - Unaudited group financial results and cash dividend declaration for the six month period ended 31 December 2019

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Unaudited group financial results and cash dividend declaration for the six month period ended 31 December 2019 Adcock Ingram Holdings Limited (Incorporated in the Republic of South Africa) (Registration number 2007/016236/06) Share code: AIP ISIN: ZAE000123436 ("Adcock Ingram" or "the Company") UNAUDITED GROUP FINANCIAL RESULTS AND CASH DIVIDEND DECLARATION FOR THE SIX MONTH PERIOD ENDED 31 DECEMBER 2019 Continuing operations - B-BBEE level 1 - REVENUE AND TRADING PROFIT INCREASES 1% - OPERATING EXPENSES FLAT - CASH ON HAND R363 million - INTERIM DIVIDEND 100 cents per share Introduction On 29 July 2019, Adcock Ingram became a subsidiary of The Bidvest Group Limited, with minority shareholders owning 49% of the Company. Closer interactions are now taking place between Adcock Ingram and Bidvest, including the appointment of an additional Director to the Adcock Ingram Board of Directors to assist in exploring strategic possibilities for Adcock Ingram, to complement its range of trusted healthcare products. In November, Adcock Ingram was certified as a B-BBEE level 1 provider, endorsing the Group's focus on Transformation as an imperative. South African consumers remain under financial pressure, due to the country's low economic growth, high levels of unemployment and ongoing utility problems. The results for the six-month period ended 31 December 2019 reflect the difficult trading conditions and constrained consumer environment. Against this background, the Board is satisfied with the profits for the half year under review, particularly that with strict cost control and a relentless focus on customer service, growth in both revenue and trading profit was achieved. Unaudited Unaudited Six months Six months ended ended Change 31 December 31 December % 2019 2018 Continuing operations Revenue from contracts with customers (R'000) 1 3 628 386 3 594 581 Gross profit (R'000) - 1 394 855 1 389 661 Trading profit (R'000) 1 490 134 485 454 Operating profit (R'000) 1 461 776 456 956 Headline earnings per share (cents) 1 218,5 217,2 Basic earnings per share (cents) 3 219,3 213,0 Total operations Revenue from contracts with customers (R'000) (1) 3 628 386 3 680 821 Gross profit (R'000) (1) 1 394 855 1 414 751 Trading profit (R'000) - 490 134 490 372 Operating profit (R'000) - 461 776 461 874 Headline earnings per share (cents) - 218,5 219,5 Basic earnings per share (cents) 2 219,3 215,3 Total assets (R'000) 6 850 967 6 416 768 Net asset value per share (cents) 2 608,9 2 412,5 Dividend per share (cents) 100,0 100,0 Prospects The effect of the current economic climate on consumer spending and behaviour remains concerning. In the absence of sustainable SEP increases, margins will continue to be under pressure from cost increases, particularly labour, transport and utilities, and active ingredient prices which are directly linked to currency fluctuations. To attempt to protect margins, the Group has placed a heightened focus on driving productivity in the factories, strict cost control and expanding the Group's product portfolio, by acquisition or partnership, particularly in less regulated product classes. Dividend policy Shareholders are advised that the Board has approved a change to the Company's dividend policy, from dividends covered 2 to 3 times by headline earnings, to 2 to 2.5 times. Dividend distribution The Board has declared an interim gross dividend out of income reserves of 100 cents per share in respect of the six months ended 31 December 2019. The South African dividend tax ("DT") rate is 20% and the net dividend payable to shareholders who are not exempt from DT is 80 cents per share. Adcock Ingram currently has 175,758,861 ordinary shares in issue and qualifying for ordinary dividends. The income tax reference number is 9528/919/15/3. The salient dates for the distribution are detailed below: Last date to trade cum distribution Tuesday, 10 March 2020 Shares trade ex distribution Wednesday, 11 March 2020 Record date Friday, 13 March 2020 Payment date Monday, 16 March 2020 Share certificates may not be dematerialised or rematerialised between Wednesday, 11 March 2020 and Friday, 13 March 2020, both dates inclusive. LP Ralphs AG Hall Chairman Chief Executive Officer Approved by the Board: 19 February 2020 SENS release date: 20 February 2020 Company secretary NE Simelane Registered office 1 New Road, Midrand, 1682 Postal address Private Bag X69, Bryanston, 2021 Transfer secretaries Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann Avenue, Rosebank, Johannesburg, 2196. PO Box 61051, Marshalltown, 2107 Auditors PricewaterhouseCoopers Inc, 4 Lisbon Lane, Waterfall, 2090 Sponsor Rand Merchant Bank (a division of FirstRand Bank Limited), 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196 Bankers Nedbank Limited, 135 Rivonia Road, Sandown, Sandton, 2146. Rand Merchant Bank, 1 Merchant Place, corner Fredman Drive and Rivonia Road, Sandton, 2196. Investec Bank Limted, 100 Grayston Drive, Sandton, 2146 The full-long form announcement is available at https://senspdf.jse.co.za/documents/2020/JSE/ISSE/AIP/AIP012020.pdf The contents of this short-form summary announcement are the responsibility of the Board of Directors. Any investment decision should be considered and based on the content of the information contained in the full announcement which will be published on the Company's website at www.adcock.com/investors/financialreports. Copies of the full announcement are available for inspection at the registered office of the Company and may be requested without charge during office hours by phoning +27 11 635 0143. Date: 20-02-2020 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
   Source: JSE News Service (SENS)
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