Grand Parade’s prospects improve


Grand Parade’s prospects improve

Published Date: 2019-09-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Grand Parade’s prospects improve

The casino and quick service restaurant group expects to report a improvement in full-year profit.

Grand Parade Investments has prompted shareholders to expect improved earnings when it reports full-year results later this month.

In a trading statement, the casino and quick-service restaurant investment group said its basic loss per share for the year to end-June would narrow by between 18% and 38% from last year's 11.66c loss. Headline earnings per share would increase to between 7.97c and 10.21c, a rise of as much as 191% from last year's 11.18c headline loss. It gave no reason for the improvement.

The group's half-year results were impacted by impairments at its Dunkin' Donuts franchise, which it closed and placed in liquidation along with Baskin-Robbins last December to stem continuing losses. At the time, it said it planned to revert back to an investment holding company and would focus on making its Burger King restaurant chain more profitable. It also recently agreed to sell part of its stake in Spur Corporation back to the group and planned to use the proceeds of the disposal to reduce debt.

Earlier this month, it said it would also sell its remaining stake in limited payout machine operator Sun Slots to Sun International for R504 million, which could result in a special dividend to shareholders or share buybacks, as well as a further debt reduction. That would free up the dividends it receives from its investment in GrandWest Casino operator SunWest, currently used to service debt, allowing the group to become dividend active again.

Its results are scheduled for release on 20 September. Its shares closed 0.4% higher at R2.84 yesterday.

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