The Company’s earnings per share (“EPS”) and headline earnings per share (“HEPS”) for the fiscal year ended 31 August 2017 are expected to be between 25% and 35% lower (being between 165.75 cents per share and 191.25 cents per share for EPS and between 165.95 cents per share and 191.25 cents per share for HEPS) compared to the EPS of 255.0 cents per share and HEPS of 255.3 cents per share respectively for the fiscal year ended 31 August 2016.
The Company’s latest acquisition, Conlog (Pty) Ltd. (“Conlog”), and other group businesses have performed in line with management’s expectations with the exception of:
- Consolidated Power Projects(Pty) Ltd’s (“Conco”) South African division which was negatively impacted by the highly uncertain macro-economic environment in South Africa and the delays in decision making in South African Utilities and Municipalities and specifically the delay of South Africa’s Renewable Energy programme through which it had signed contracts of R2.3 billion and anticipated up to R4 billion worth of contracts for rounds 4 and 4.5 of the programme. Conco had expected R800 million of work to be executed in the year ended 31 August 2017 which did not materialise;
- Angola Environmental Services’ performance continues to be negatively impacted by the slowdown in the Angolan Oil Sector. There has been no increase in the number of rigs in the market since reporting our interim results. The business however still delivers attractive earnings before interest and depreciation. All fees and remittances due are being paid timeously through the Central Bank approved contracts. The business remains debt free and has significant cash resources.
Shareholders are further advised that should CIG become reasonably certain that the range detailed above is no longer correct, the Company will issue a further trading statement.
The information on which this trading statement has been based has not been reviewed or reported on by CIG’s auditors.
The reviewed results for the year ended 31 August 2017, are anticipated to be released on 8 November 2017.