Argent sees silver lining


Argent sees silver lining

Published Date: 2019-05-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Argent sees silver lining

The group expects to report a strong rise in full-year earnings after it downsized and restructured its operations.

Argent Industrial's shares jumped close to 10% at their best yesterday after it forecast a strong rise in full-year earnings.

In a trading statement, the steel-based beneficiation group said it expected to report headline earnings per share of between 89.5c and 104.9c for the year to end-March. That's an increase of between 16.6% and 36.6% on last year. Earnings per share are expected to jump by between 138.3% and 158.3% from the 205.2c loss it reported a year ago.

The group gave no reason for the increase but has been through a restructuring. Its 2018 earnings were affected by impairments and retrenchment costs as it closed motor component maker Sentech Industries and prepared to downsize a number of other businesses due to the weak economy. Businesses affected included Jetmaster, Toolroom Services, Gammid Cape and Gammid Johannesburg. The restructuring allowed it to sell a number of buildings. At the time, it said it would use excess funds to repurchase up to 20% of its shares.

It retraced most of its gains to close 1.4% higher at R5.08 yesterday.

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