Tag: Finance

Vodacom announces a no change statement and AGM notice, gives more updates on Alcatel2019G.

Vodacom World in Midrand, Johannesburg.

Vodacom announced to shareholders and the public that the integrated and consolidated audited annual financial reports were now available and contained no significant changes to the reviewed preliminary results and auditor’s report that were announced on SENS on 11 May 2020.

The group also gave more details, according to SENS updates, to their shareholders regarding the scheduled annual general meeting on 21 July 2020.

The Alcatel2019G phone built for senior citizens and visually impaired is now available for sale for R649.

As part of their objectives to continue providing more inclusive technologies to meet the needs of people with visual impairments and the elderly, the Alcatel2019G has been launched on Friday. The phone will retail at R649 and will be available on standard contracts.

The device will bring back the parent design of old, with large keypads and large icons. “Some of our senior citizens have been consistent in their feedback to us – they prefer a device with a large keypad. In line with our purpose pillar of creating an inclusive digital society, the introduction of the Alcatel 2019 series helps us make sure no one is left behind,” says Karen Smit, Vodacom Principal Specialist for Specific Needs.

Here are some of the features of the device:

  • dedicated charging dock
  • SOS emergency button
  • 16 hours talk time
  • torch
  • lock and unlock key
  • FM radio that can function without headsets and
  • 2MP rear camera
Charger docking station for the Alcatel2019G

Vodacom also allows a text-based channel for the hearing impaired, deafblind, speech impaired and deaf to access emergency services.

For more information, visit Vodacom’s website.

Freight carrier – Value Group Limited – posts muted growth amidst a global pandemic and a sluggish economy.

National owner-operator, Value Group Limited, has reported rather modest growth figures for the financial year ended 29 February 2020.

Value Group owns the Value stable which includes Value Logistics, Value Warehousing, Value Truck Rental, Freightpak amongst others.

Ranked the 7th best logistical company in South Africa 2019 by JohnVine Insight Review, the group published its latest annual results on Friday and reported a stable performance that saw their top line expand 4% to R2.88 billion.

Net profit also grew 16% to R127.3 million during a year that saw a lot of their clients struggle with market volumes amid deteriotating consumer spending and currency depreciation. Jovial shareholders might particularly be pleased with a 22% jump in Earnings Per Share (EPS) to 89.2cents albeit the driving force here was a R13.2 million figure spent on share buy-backs for the year, and not certainly a clear indication of the group’s profitability. This is also supplemented by a 9% increase in their Net Asset Value per share to 564.6cents.

A dividend of 24cent per share has been declared by the group, although the cash balance provides enough room to increase this, the company has opted to adopt a more conservative approach around their cash commitments in the wake of increased uncertainty brought about by the global pandemic.

The group was founded in 1981 by Steven Gottschalk and has been serving as GCE ever since.

The company acknowledged a combination of revenue growth, operational savings and improved efficiencies pushed their EBITDA up to R257.7 million but financing costs amounting to R96 million – over R10 million less than the previous year – denied the group bigger margins. The prime obligation – 80% of financing costs – was lease liabilities amounting to over R76 million, something Chief Executive Gottschalk noted with concern in his notes, as the long term asset register declined by more than R156 million.

It is no wonder that CAPEX will remain a key focus moving into the current financial period with another R167.4 million budgeted for capital expenditure – 65% of that going to new vehicles – after a year that saw a total of R165.4 million spent on a CAPEX Programme that was 90% financed with pure cash reserves.

Value Group has set aside R109 million on new vehicles for FY21.

Low debt levels and the group’s ability to generate rate cash flow – R599 million previous year – will no doubt ensure sustainability into the foreseeable future. The debt to equity ratio is 1.93, which is an indication of a balanced debt structure enacted by the board.

The first quarter of FY21 already had its own revenue challenges, largely due to the pandemic that saw most of the client base cut back their stock volumes or close their doors completely due to the nation-wide level 5 lockdown. The company was designated an essential service provider and was permitted to continue operating part of their fleet for clients who provided essential services. April 2020 saw a 32.6% reduction in revenue juxtaposed with April 2019. The lockdown was downgraded to level 4 from the 1st of May and although revenue picked up slightly compared to the previous month, it still falls 5.3% short of May 2019’s revenue.

It is widely expected to continue the upward trend as the lockdown level downgrade every 30 days, if compliance is upheld.

Share price closed 1.18% higher to R4.30 at the close of trade on Friday 12th.