Group Five full year FDHEPS up 88 per cent, total dividend per share up 86 per cent

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Group Five full year FDHEPS up 88 per cent

This was compared to 177 cents registered during the same period in 2012.

The group also reported 86 per cent rise in its total dividend per share for the year up to 67 cents per share.

“A dividend for this period of 35 cents per share has been declared. The full year dividend for the year is 67 cents. The dividend policy therefore remains unchanged, based on the medium term business outlook and the availability of liquid resources,” Group five said in a statement.

Headline earnings (HEPS) of 298 cents per share represents an increase of 156.9 per cent, and fully diluted HEPS (FDHEPS) of 296 cents per share an increase of 157.4 per cent, compared to HEPS and FDHEPS of 116 and 115 cents per share respectively in F2012.

Earnings per share (EPS) was 279 cents per share and fully diluted EPS (FDEPS) was 277 cents per share compared to a loss of 288 cents per share in F2012.

The Group said the difference between earnings and headline earnings was mainly as a result of an impairment  charge of R11,0 million (net of tax) on assets, reflected as non-current assets classified as held for sale on the group’s statement of financial position, relating to the disposal of the Construction Materials businesses.

Group revenue from continuing operations increased by 26.7 per cent from R8,8 billion to R11,1 billion as a result of increased activity in all of the group’s businesses.

All of the group’s businesses, with the exception of the Building and Housing segment, delivered increased operating results. This resulted in the group’s core operating profit increasing by 71.7 per cent and core operating margin percentage improved to 5.0 per cent for the full year.

Not included in the core operating profit above, but included in earnings, is a surplus on the group’s pension fund of R29, 6 million as a result of an actuarial valuation assessment. This is offset by a share-based payment expense of R25, 0 million in H2 F2013 as a result of the implementation of the group’s revised BBBEE ownership transaction which was approved by shareholders during the year under review.

Included in operating profit is fair value net upward adjustments of R86, 5 million relating to the group’s interests in Eastern European road transport concessions. This positively affected the group’s results in the year.

Group total operating margin increased to 5.0 per cent. In line with expectations, net finance cost of R8, 3 million were recorded for the period compared to R3, 8 million in the prior year as a result of a year-on-year reduction in other finance income earned. The effective tax rate of 38 per cent was higher than the South African statutory tax rate of 28 per cent.

The company said this was due to the group adopting a prudent approach in assessing tax positions, under provision of taxation liabilities in the prior year and, to a lesser extent, profits realised in jurisdictions with higher tax rates than South Africa, which was offset by profits earned in jurisdictions with lower taxation rates.