By Almost Maqolo.
HARARE – ( News of The South)- Old Mutual Limited expects its 2019 profit after tax attributable to equity holders of the parent on comparable basis to increase by 30-37%.
IFRS profits in the 2018 financial year include the accounting impacts of the transactions executed to complete the Managed Separation. These transactions included the distribution of Quilter plc and the unbundling of Nedbank Group Limited.
Profit after tax for the comparative period therefore included the consolidated profits in respect of the Quilter plc and Nedbank businesses, these were classified as profit from discontinued operations. Profits for the comparative period also included the profit recognised on the distribution of Quilter plc on 24 June 2018 and the unbundling of Nedbank on 15 October 2018.
“Profit after tax for the current period no longer includes the impact of these items related to the execution of Managed Separation, which is the main driver of the expected decrease,” the company in a trading update.
IFRS profit after tax attributable to equity holders of the parent on a comparable basis is adjusted to remove the impact of Managed Separation transactions and to reflect Nedbank as if it had been accounted for as an associate for the full 2018 year.
Basic earnings per share estimated to decline by 73% to 75% to 204.9 – 197.0 cents compared to 788.1 cents in the comparative period. Headline Earnings to fell by 24% to 28%. Also, Headline Earnings per share (HEPS) will decline by 22% to 25% to 230.2 – 239.4 cents compared to 306.9 cents in the comparative period.
Results from Operations to went down by 0 – 5% compared to the comparative period.
“Reflecting a resilient outcome in the context of low economic growth in South Africa.”
However, Adjusted Headline Earnings will increase by 2% to 7% due to higher shareholder investment return in South Africa. AHE per share is expected to increase by 4% to 9% to 202.9 – 212.6 cents in the current period compared to 195.1 cents for the comparative period.
The trading statement provides an indication of a range for HEPS and earnings attributable to equity holders of the Group per ordinary share (EPS) in terms of paragraph 3.4(b) of the JSE Limited Listings Requirements compared to the year ended 31 December 2018.
The group in the process of finalising its annual results for the year ended 31 December 2019.
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