Pepkor forecasts higher earnings


Pepkor forecasts higher earnings

Published Date: 2019-05-13 | Source: Stephen Gunnion | Author: Stephen Gunnion

Pepkor forecasts higher earnings

The retail group's 2018 interim results were negatively affected by a R500 million provision.

Pepkor's shares rose over 3% on Friday before closing lower after it told shareholders to expect an increase of as much as 54% in first-half earnings.

In an updated trading statement, the retail group said earnings per share (EPS) for the six months to end-March would be between 34.4% and 54.4% higher than the 36.2c it reported last year. Headline EPS would be up by as much as 54.1%.

Last year, its results were affected by a R500 million provision made to cover a corporate guarantee and associated loans. The once-off costs stripped 14c per share from earnings.

The group changed its name from Steinhoff Africa Retail last year after accounting fraud tainted parent company Steinhoff International.

It expects to publish its results on 29 May. Its shares ended 0.2% down at R19.24.

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