Cape Times 2022-02-25

Edward West edward.west@inl.co.za SPUR Corporation dished up a whopping 119.4 percent increase in headline earnings to R59 million in the six months to December, 2021 as trading conditions improved with the easing of Covid-19 lockdown restrictions. There had been a strong increase in restaurant foot traffic in the last few months of 2021, chief executive Val Nichas said yesterday. Group revenue grew by 40.3 percent to R441m due to improved franchised restaurant turnovers, higher sales in the five company-owned restaurants and increased sales from the manufacturing and distribution division. Comparable profit before income tax, excluding once-off and unusual items, increased by 96.3 percent. An interim dividend of 49 cents per share was declared and the group was ungeared at the end of December, with R259m cash on…

Siphelele Dludla siphelele.dludla@inl.co.za INVESTORS have remained confident that the fiscal path contained in the Budget did enough to starve off a credit ratings downgrade, and provided a firmer footing for an outlook review from negative to stable. Fitch Ratings, one of three major ratings agencies, however, warned yesterday that continuing breaches of expenditure ceilings pointed to difficulties in containing spending. Fitch said there was a risk that recent strong revenue growth might prove temporary. Finance Minister Enoch Godongwana on Wednesday tabled his maiden Budget, showing stronger fiscal revenue. Godongwana said consolidated spending was expected to grow at an annual rate of 3.2 percent over the next three years, from R2.08 trillion in 2021/22 to R2.28 trillion in 2024/25. The finance minister said the improvement in public finances had been enabled…

Petrol price in SA set to come under more pressure leading to higher inflation Siphelele Dludla siphelele.dludla@inl.co.za RUSSIA’S final push into Ukraine caused a seismic risk-off sentiment that reverberated across the globe yesterday, escalating oil prices to an eight-year high while plunging financial markets into turmoil and weakening all major currencies. Global oil prices rose rapidly, the highest in eight years, after Russia launched a full-scale military operation in Ukrainian cities. The escalating Ukraine/Russian conflict spooked investors on fears of supply constraints, driving the price of Brent crude to jump 8 percent to reach $105.29 (R1 610.91) per barrel by 2pm. This was the first time that the price of Brent crude has crossed the $100-mark since September, 2014, as Russian forces fired missiles at several cities in Ukraine, including…

Banele Ginindza banele.ginindza@inl.co.za CABINET and the Takatso Consortium have given the strongest indication yet that national airline South African Airways is still up for a 51 percent takeover by the consortium, eight months after the deal was first put in the public domain. In a statement yesterday, the Takatso Consortium said it could “confirm the recent Cabinet announcement that the sale and purchase process has been concluded”, whereby the Consortium would buy a 51 percent stake in SAA subject to various regulatory approvals and conditions precedent. This was confirmed by an earlier statement issued by the Presidency “that further progress had been made in the disposal of 51 percent of shares in SAA to Takatso. This comes shortly after Finance Minister Enoch Godongwana in his inaugural…

Edward West edward.west@inl.co.za DISCOVERY lifted normalised headline earnings per share by 26 percent to 437.7 cents for the six months to December 31 after it grew through the pandemic, with a strong performance from Discovery Bank and the establishment of Amplify Health. Despite the good performance though, no interim dividend was declared, which saw its share price slide in intraday trade, down 4.35 percent to R153.61. Management said that over the period, their strategy remained three-pronged: navigating the pandemic; building on the business model, with good traction in Discovery Bank; and the conclusion of the Amplify Health transaction with AIA Group on February 15, 2022 and focusing on cash and capital management. Discovery is injecting its Vitality and Health capabilities into a new health InsurTech joint venture with the AIA…

Mayibongwe Maqhina DEPUTY President David Mabuza said yesterday President Cyril Ramaphosa had established the inter-ministerial task team to respond to issues raised by traditional leaders. Addressing the opening of the National House of Traditional and Khoisan Leaders, Mabuza said the task team, which he would lead, would comprise several ministers to address issues raised by the traditional leaders. “As (the) government, we acknowledge the issues and challenges raised by Amakhosi and Khoisan leaders, which, in the main are about the strengthening of this key institution, and placing it at the heart of development of traditional communities to be on par with the rest of the country,” he said. The traditional leaders have over the years highlighted the need to resolve the land question and to improve road infrastructure to connect…