Vunani interim results August 2018
Revenue for the interim period increased to R233.7 million (2017: R160.1 million), results from operating activities rose to R40 million (2017: R22.3 million), profit from continuing operations attributable to equity holders of Vunani climbed to R25.2 million (2017: R12.8 million), while headline earnings per share from continuing operations grew to 15.7 cents per share (2017: 8.2 cents per share).
Overview and prospects
Business conditions proved to be challenging over the reporting period as the South African economy officially slipped into recession in the second quarter of the calendar year. US- led global trade wars amidst rising interest rates, culminated in a general risk-off stance by investors. That put emerging market currencies under severe pressure. The Rand weakened by more than 24% and 15%, against the US dollar and on a nominal and a trade weighted basis over the reporting period, respectively. International energy prices also continued to rise. While Vunani benefited from higher coal prices, significant increases in domestic fuel prices had a detrimental effect on business conditions in general. Moreover, elevated levels of uncertainty amidst weak economic growth and the run-up to the 2019 national elections, further dampened interest and activity in the domestic financial markets. A concomitant mediocre performance by the domestic equity market as reflected by the JSE All Share Index's mere 0.6% growth, limited growth in domestic financial asset values and as such, also detrimentally affected performance in Vunani's related businesses.
Despite difficult market conditions, Vunani performed considerably well for the six month period to 31 August 2018.
Vunani generated total comprehensive income for the period of R31.4 million (2017: R15.8 million), while total comprehensive income attributable to equity holders of the company amounted to R26.6 million (2017: R13.1 million).