Zeder expects SOTP value growth - CNBC Africa

Zeder expects SOTP value growth

Earnings

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Zeder Investments Limited focuses on investment in the agricultural, food, beverages and food processing sectors. PHOTO: Getty Images

The South African investment company, which focuses on the agricultural, food, beverages and food processing sectors, expects its sum-of-the-parts (SOTP) value, as at 28 February 2014, to be between 4.90 rand and 5.05 rand per share.

“The increase in recurring headline earnings per share was mainly due to improved contributions from Agri Voedsel or Pioneer Foods, Capespan, Zaad, Kaap Agri and Chayton,” [DATA ZED:Zeder Investments Limited] said.

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“However, the positive effect was to some extent offset by the cash proceeds from the disposal of the bulk of Zeder’s Capevin Holdings shares and a weaker performance from NWK and Suidwes, prior to disposing of same during September 2013, as a result of drought conditions experienced in   their geographical locations.”

See-through SOTP value per share, as at 28 February 2014, is expected to be between 5.15 rand and 5.30 rand per share while recurring headline earnings per share should be between 29 cents and 30 cents.

Headline earnings per share are expected to be between 25 cents and 26 cents, or between 24.4 per cent and 29.4 per cent higher than that of the previous year. Attributable earnings per share however are expected to be between 42.6 per cent and 44.6 per cent lower than in 2013.

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“The aforementioned, coupled with higher marked-to-market gains, resulted in the increase in headline earnings per share. The decrease in attributable earnings per share was mainly as a result of the one-off non-headline gain on the disposal of the bulk of Zeder’s Capevin Holdings shares during the prior year,” it said.

The company’s audited results for the year ended 28 February 2014 should be published on or around 7 April 2014.

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