Revenue for the interim period fell to R1.3 billion (R2.7 billion) whilst LBITDA came to R774.5 million (earnings of R328.5 million). Loss attributable to equity holders was R1.2 billion (profit of R203.1 million). In addition, headline loss per share was 341.7cps (earnings of 111.1cps).
The group’s policy is for the board to consider a dividend on an annual basis after reviewing the annual results.
Company Outlook and Prospects
The trading period has been the toughest ever experienced by the management team. The failure to anticipate the impact as well as the poor response to the challenges cannot be repeated. The effort to revise and revitalise the business, together with the loan advanced by FSA and the underwritten rights offer, provides the liquidity lifeline as well as the necessary time horizon for the group to emerge positively from the current environment.
The recommencement of the Round 4 REIPPP bodes well for Conco, and will contribute to earnings in the next financial year. The niche expertise in CIGenCo, CPM and Conco as late-stage investor operator and constructor will be harnessed as the continent adopts cost-efficient clean energy.
The BECX range of meters were launched by Conlog on 15 May 2018. CIL is optimistic that the new generation of radio frequency and power line communication meters will establish new markets across the continent. Extensive efforts are under way to develop a services and product platform, the result of which will contribute to a higher proportion of annuity revenues. These initiatives are set to contribute positively to the next financial year.
The management team and the CIL board firmly believe that the Fairfax Africa transaction presents shareholders with the best opportunity to maximise value over the medium to long term by aligning the group with a strategic investor with common objectives for long-term capital growth. Further, with an aligned Africa expansion strategy based on shared conviction that infrastructure will continue to power African growth, positions the group to deliver sustainable returns.