Rolfes to report a loss on impairments


Rolfes to report a loss on impairments

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

Rolfes to report a loss on impairments

The specialty chemicals group, which may be bought out, says it remains positioned for growth despite a difficult trading environment.

Rolfes says it will report a full-year loss due to impairments at its Agri and Water businesses.

In a trading update, the specialty chemical group said its loss per share for the year to end-June wouldn't be more than 29.4c. Last year, it reported earnings per share of 0.93c. However, headline earnings per share, which exclude the impairments, would be at least 84% higher than last year's 12.24c.

The group is emerging from a tough period after it was forced to restate its results in 2017 due to the understatement of impairments. The problem was detected by new auditors, as well as CEO Richard Buttle, who was acting chief financial officer at the time. The issues were primarily related to its Botswana water business and lead chrome pigment product ranges disposed of after it closed the plant. Buttle was appointed CEO in October 2017, replacing Lizette Lynch who resigned.

Under a restructuring led by Buttle, the group reported a strong rise in revenue from continuing operations for the six months to end-December, while headline earnings per share increased by 33%.

Last month, it confirmed that an expression of interest had been received relating to a potential offer for all, or a majority of its shares in issue. It said a due diligence exercise was currently being carried out on the company.

It expects to release its result on 27 September. Its shares fell 2.1% to R2.74 yesterday.

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