Specialty chemicals group AECI (AFE) on Tuesday reported diluted headline earnings per share rose to 264 cents for the six months ended June 2011 from 237 cents a year ago.
An interim dividend of 78 cents per share was declared, compared with 70 cents a year ago.
Revenue from continuing operations was up 10% to 5.969 billion rand, assisted by global increases in commodity prices but tempered by the continued strength of the rand.
Headline earnings improved by 11% to 284 million rand and profit from operations was 13% higher at 546 million rand. Headline earnings were negatively impacted by a higher tax charge due to the higher dividend paid in May as well as additional tax provisioning resulting from the Founders Hill judgement.
Volumes were 2.3% higher.
The company on Tuesday also announced a 1.2 billion rand new broad based black economic empowerment transaction.
As indicated in February 2011, the AECI Board has pursued the B-BBEE transaction that was initially contemplated in 2009. Two B-BBEE transactions are currently being proposed to shareholders - the acquisition of the Kagiso Tiso Holdings consortium's shareholding in AEL Mining Services in exchange for ordinary shares in AECI and the issue of new shares to facilitate the establishment of an Employee Share Trust and a Community Share Trust.
Looking ahead, the group said historically it trades better in the second half-year owing to seasonal effects in agricultural and the consumer sectors. However, the potential impact on Group companies and their customers resulting from the current industrial action is of concern.
AECI management's focus for the rest of 2011 would remain on the successful incorporation of acquisitions into existing businesses in the specialty chemicals cluster; the continued ramp-up of ISAP and of Senmin's new plants; the careful management and reduction of working capital levels; and cost-focused leadership, it said. - I-Net Bridge