DIVERSIFIED industrial group Rembrandt Group (Remgro) is expected to report earnings growth of 19,7% and a decline in its dividend of 17% (due to a special dividend payment last year) for the year to end-March this year when it reports its final results tomorrow.
According to a consensus of eight investment analysts surveyed, Remgro is set to report earnings a share of R9,76 and to declare a dividend of R2,53 a share, compared with last year's earnings of R8,15 and a dividend of R3,06, which included a R1 special dividend.
Remgro counts among its assets a wide range of holdings, including an 11% effective stake in international tobacco giant British American Tobacco (BAT), 30% of listed local wine and spirits company Distell, and mining companies Gencor and Trans Hex.
It also has stakes in financial groups Absa, FirstRand, RMB Holdings and Sage, and its listed industrial interests include Nampak, Dorbyl, Rainbow Chicken, Hunt Leuchars & Hepburn (HL&H) and Medi-Clinic.
Analysts say the company's 19,7% earnings growth for this year will stem principally from the gains coming from rand weakness when translating BAT's sterling-based earnings into rand over the period more than 50% of Remgro's earnings come from its BAT stake.
At the same time, excellent performances have also been posted by Rainbow Chicken and Nampak with earnings rises of 43% and 40%, respectively while the group's financial interests have experienced a turnaround as Sage has pared its previous losses and Absa recorded a 75% jump in earnings after the 2001-02 Unifer debacle.
Analysts say the group's cash holdings, sitting at about R2,1bn as at the end of March last year, are likely to have risen only marginally after it spent almost R1 bn to buy out minority shareholders in HL&H.
Jun 24 2003 07:33:22:000AM Lynn Bolin Business Day 1st Edition
Tuesday
24 June 2003
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