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Mahube Infrastructure Reports 298% Revenue Surge and 95.85 Cents EPS | Rateweb
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Mahube Infrastructure Reports 298% Revenue Surge and 95.85 Cents EPS

Mahube Infrastructure Limited announced its audited annual results for the year ended 29 February 2024. The company reported a substantial increase in dividends received and total revenue, leading to positive earnings per share. Additionally, Mahube declared a final cash dividend for the year.

Annual Results Overview

Mahube’s annual results showcase significant financial improvements. Dividends received increased to R50.1 million, a substantial rise from R18.0 million in the previous year. This increase is attributed to healthy dividends from investee companies and special dividends from project refinancing.

Metric2024 (R million)2023 (R million)
Dividends Received50.118.0
Total Revenue68.2-14.1
Basic & Headline Earnings per Share95.85 cents-53.68 cents
Tangible NAV per Share10.529.91

Revenue Surge and Profitability

Total revenue for the year reached R68.2 million, compared to a negative R14.1 million in the prior year. The increase in dividend income and a positive change in the fair value of financial assets contributed to this revenue surge. The fair value of financial assets increased by R17.2 million, mainly due to revised wind forecasts and favorable macro-economic indicators.

Earnings Per Share

Basic and headline earnings per share rose to 95.85 cents, a stark contrast to a loss of 53.68 cents per share last year. The improvement in earnings is a result of increased revenue and stable operating expenses. Operating expenses decreased slightly from R15.4 million to R15.1 million.

Tangible Net Asset Value

Mahube’s tangible net asset value (NAV) per share increased from R9.91 last year to R10.52 in the current year. This growth reflects the company’s strong financial performance and asset valuation.

Investment Portfolio

Mahube Infrastructure Limited provides investors with exposure to infrastructure assets in Southern Africa. The company’s vision is to stimulate fast, inexpensive, and sustainable infrastructure delivery and upkeep on a significant scale. Mahube aims to offer predictable and regular cash flows from infrastructure assets, long-term investment returns, and solutions to infrastructure-related market inefficiencies.

Currently, Mahube holds equity interests in two wind farms and three solar photovoltaic farms, with a collective power generation capacity of approximately 400 MW. Four renewable energy assets were licensed during Bid Window Round 1, and the fifth during Bid Window Round 2 of the Renewable Energy Independent Power Procurement Programme in South Africa. Each asset sells electricity to Eskom under a 20-year power purchase agreement.

Cash Dividend Declaration

Mahube announced a final cash dividend of 20.00 cents per share for the year ended 29 February 2024. The dividend is subject to a 20% Dividends Withholding Tax, resulting in a net cash dividend of 16.00 cents per share. The payment date for the dividend is Monday, 29 July 2024.

Dividend Details
Gross Dividend per Share20.00 cents
Net Cash Dividend per Share16.00 cents
Shares in Issue55,151,000
Dividends Withholding Tax Rate20%
Income Tax Reference Number9473/844/17/4

Dividend Payment Schedule

The salient dates for the dividend are as follows:

  • Last day to trade cum-dividend: Tuesday, 23 July 2024
  • Shares commence trading ex-dividend: Wednesday, 24 July 2024
  • Dividend record date: Friday, 26 July 2024
  • Dividend payment date: Monday, 29 July 2024

Shareholders are advised that share certificates may not be dematerialized or rematerialized between Wednesday, 24 July 2024, and Friday, 26 July 2024, both days inclusive.

Conclusion

Mahube Infrastructure Limited’s strong financial performance, increased revenue, and positive earnings per share highlight its robust business model and successful investment strategy. The declared cash dividend further underscores the company’s commitment to delivering value to its shareholders.