Durban – Pepkor Holdings has managed to reduce its debt more than60% after it flagged that its profits would grow by more than double digits in the six months to the end of March on strong trading performance despite volatile operating conditions as a result of Covid-19.
Pepkor said it had reduced its net debt to R6.1 billion from R14.1 billion to last year, due to its strong cash generation. It said it expected its headline earnings per share (Heps) from continuing operations to increase at least 9.1 cents or 20% from 45.6cents last year and earnings per share (Eps) to shoot up 8.8c or 20% from 43.8c reported a year earlier.
“The increase in Eps and Heps is attributed to strong trading performance in addition to the marked reduction in net debt and related finance costs during the period,” said Pepkor.
The group said its credit contribution to total group sales reduced to 7% for the period, down from 8% compared to last year, while credit book collections were at similar levels to those achieved in the comparable pre-Covid-19 period.
The group is expecting to release half-year results next month.
Pepkor shares rose 5.15% on the JSE yesterday to close at R16.32.