Holdsport headline earnings up 6.7 % - CNBC Africa

Holdsport headline earnings up 6.7 %


by Trust Matsilele 0

Holdsport headline earnings up 6.7 per cent . PHOTOS: Cameron Construction

The group declared an interim gross dividend of 85 cents per share up from 75 cents a share in 2013.

The [DATA HSP:Holdsport Limited] group comprises the retail divisions Sportsmans Warehouse and Outdoor Warehouse and Performance Brands, a wholesale business that includes the First Ascent and Capestorm brands.

(READ MORE: S.Africa’s Holdsport continues retail expansion)

The company’s core headline earnings per share surged to 174 cents in 2014, a 6.7 per cent increase on the comparable period.

“Core headline earnings, excluding the effect of foreign exchange adjustments, was 175.4 cents per share, an increase of 8.8 per cent from the 161.2 cents per share in the first half of last year,” said the company in a SENS announcement.

The group also saw its earnings before interest, taxes, depreciation, and amortisation (EBITDA) rising by 8.4 per cent to 123.6 million during the comparable period.

“In a challenging retail environment total sales increased 7.3 per cent to 677.1 million rand and retail sales increased 8.1% to R648.5 million,” reported the group.

The group expressed concerns over immediate future prospects.

(WATCH VIDEO: Holdsport - Hot or Not)

“We expect trading conditions to remain challenging for the remainder of the year but, as always, the second half is heavily dependent on Christmas trading, which will strongly influence the performance of the group in the second half and for the year.”

Holdsport recently concluded an agreement to dispose off its 50 per cent share of its distribution centre in Philippi to [DATA RDF:Redefine Properties Limited](Redefine) for gross proceeds of 42.5 million rand.

The deal will see Redefine owning 100 per cent of the distribution centre and Holdsport will continue to use the distribution facility under the existing lease terms, which remain unchanged.