Attacq reports half-year headline earnings decline

Attacq, a leading property company, has recently disclosed its half-year financial results for the six months ending in December 2016. The company's diluted headline earnings per share showed a significant increase at 5.57 cents compared to 53.8 cents in the previous year. Attacq's CEO, Morne Wilken, discussed the company's overall performance and future prospects in an exclusive interview with CNBC Africa. Wilken delved into the details of Attacq's financial performance, highlighting the substantial growth in revenue to a billion rand, a marked improvement from $760 million in the preceding year. He attributed this growth to the positive performance of the company's South African portfolio, which includes regional shopping centers, properties, and strong assets. Despite the challenging foreign exchange environment, with the rand strengthening against the euro and the dollar, Attacq's South African holdings delivered a year-on-year growth of 9.8%. Wilken emphasized the long-term vision of Attacq and its strategic approach to maintaining stability in the face of currency fluctuations. The CEO also outlined Attacq's ambitious development pipeline, with projects such as the construction of the Mall of Africa and the upcoming completion of the PWC development. Additionally, Attacq has strategic investments in MassPLC, Africa, and central and eastern Europe, aiming to diversify its portfolio and leverage growth opportunities in international markets. Wilken discussed the impact of currency fluctuations on Attacq's operations, noting the challenge of navigating unfamiliar territories such as eastern Europe. He emphasized the importance of having local partners with in-depth market knowledge to drive success in foreign markets. When asked about the economic outlook and political landscape in South Africa, Wilken expressed optimism, citing an increase in business inquiries and overall confidence in the market. Despite lingering political uncertainties affecting investment decisions, Wilken highlighted a positive trend in business activity and interest, particularly in the Waterfall development. Addressing concerns of overextension in the property sector, Wilken pointed to Attacq's robust trading densities and successful operations, signaling a strong foundation for future growth. He dismissed claims of cannibalization in the market, emphasizing the company's focus on enhancing the customer experience and driving sustainable growth. Looking ahead, Wilken outlined Attacq's key priorities, including revenue growth in its quality portfolio, advancing the Waterfall pipeline projects, and capitalizing on opportunities in international markets. The CEO expressed confidence in Attacq's revised strategy for central and eastern Europe and projected a positive trajectory for the company in the upcoming year. In conclusion, Wilken refrained from speculating on interest rate movements, highlighting Attacq's prudent risk management approach through interest rate swaps. While acknowledging the potential impact of interest rate cuts on business growth, he remained vigilant and optimistic about Attacq's prospects amidst evolving market dynamics.