Trustco shares plunge 31%
Economist.com.na - Jun 24th, 11:36
Diversified financial services group Trustco’s share price has suffered a 31% reversal since the company revealed earlier this month that headline earnings per share and basic earnings per share for the financial year ended 31 March 2013 will be 50% and 60% respectively lower than the previous year.
In a trading statement released on 04 June, Trustco said it expects headline earnings per share to be at a minimum of 50% lower than the comparable period’s 20.27 cents and that basic earnings per share for the year ended 31 March 2013 will be at a minimum of 60% lower than the prior period’s 35.08 cents.
Soon after the announcement, the Trustco share price went on a free fall. On Monday 03 June, a day before the announcement, Trustco shares were trading at 108 cents per share before falling to 95 cents on the day of the announcement. On Wednesday last week, Trustco’s share price dropped to 70 cents before rallying to close the day at 75 cents.
Trustco attributed the fall in earnings to reduced revenue and profitability in its micro insurance segment in South Africa and also from the reduced revenue from its property sales. The group said further details will be provided in its annual integrated report expected to be released on Friday 21 June.
Trustco’s woes comes at time when the group launched a revolutionary free life cover for Shoprite Namibia customers in September before embarking on a roadshow aimed at raising N$1 billion in capital to be used in the further expansion of operations in the region and across Africa.
Interestingly, when Trustco announced a 3% drop in after tax profit for the first six months of the financial year ended 31 March 2013, the group downplayed the fall in margins saying “historically the second half of the financial year has materially exceeded the performance of the first half, due to the cyclical nature of the business.”
Manufacturers’ sentiment index jumps to 36,61 in third quarter, Namibia
23/10/2013 - 10:12
The manufacturers’ sentiment index jumped to 36,61 in the third quarter of this year from the -14,89 recorded at the end of the previous quarter, Simonis Storm Securities (SSS) said in a report released earlier this month.
Shoprite operating normally, license intact - minister, Zambia
22/10/2013 - 09:30
Minister of Labour and Social Security, Fackson Shamenda, says Shoprite is operating normally and its operating licence is still in force.
Meatco and Witvlei bid for Norwegian meat quota, Namibia
22/10/2013 - 08:31
Meat processing companies, Meatco and Witvlei Meat, have once again bid for the lucrative beef export quota to Norway, which is set at 1600 tonnes per year and pays 72% more than exports to other parts of Europe. Earlier this month, the Meat Board of Namibia requested for bids for the Norway quota from local meat companies.
Role of venture capital in Namibian economic growth
22/10/2013 - 08:06
The Namibian Government is injecting huge stimulus into the Namibian economy in order to accelerate the growth of local enterprises. The recent promulgation of the amended Regulation 28 and 29 of the Pension Funds Act has the potential to unlock capital and channel its flow towards entrepreneurial businesses.
Shoprite boss puts blame on manufacturing
16/10/2013 - 11:06
Shoprite chief executive Whitey Basson has moved beyond blaming the usual suspects of unions and labour legislation for South Africa’s economic woes and has lashed out at the “declining” manufacturing sector for its lack of innovation and competitiveness.