In a move reflecting the challenges faced by the company, Northam Holdings has announced its condensed reviewed interim financial results for the six months ending 31 December 2023, alongside a cash dividend declaration. The figures depict a notable decline in performance compared to the previous year, prompting strategic decisions from the board.
Financial Performance Overview
The interim results reveal a significant downturn across key financial metrics:
| Metric | Six Months Ended 31 Dec 2023 | Six Months Ended 31 Dec 2022 | Variance |
|---|---|---|---|
| Sales Revenue (R’000) | 14,994,577 | 20,119,026 | -25.5% |
| Operating Profit (R’000) | 2,417,200 | 9,066,564 | -73.3% |
| Operating Profit Margin (%) | 16.1 | 45.1 | -64.3% |
| Earnings Per Share (cents) | 136.5 | 1,596.2 | -91.4% |
| Headline Earnings Per Share (cents) | 121.4 | 1,608.5 | -92.5% |
| Dividends Per Share (cents) | 100.0 | – | 100.0% |
| EBITDA (R’000) | 3,170,829 | 9,953,810 | -68.1% |
| EBITDA Margin (%) | 21.1 | 49.5 | -57.4% |
These figures underscore a challenging period for Northam Holdings, with sales revenue and operating profit taking significant hits compared to the previous year. Earnings per share and headline earnings per share have also seen steep declines, indicating a tough operating environment.
Cash Dividend Declaration
Despite the financial headwinds, the board has decided to declare an interim gross cash dividend of 100.0 cents per share for the six months ended 31 December 2023. This dividend, amounting to approximately R396.2 million, is drawn from the company’s income reserves.
Shareholders should take note of a dividend withholding tax of 20%, applicable to those not exempt from or qualifying for a reduced rate. Consequently, the final net cash dividend will stand at 80.0 cents per share.
Key Dates for Dividend
Several important dates have been announced regarding the dividend:
During the period from 19 to 22 March 2024, shareholders will be unable to dematerialize or rematerialize their Northam Holdings shares.
Looking Ahead
Despite the challenging financial results, Northam Holdings remains committed to navigating the current economic landscape. The board’s decision to declare a dividend, albeit amidst declining performance, demonstrates confidence in the company’s long-term prospects.
Shareholders are urged to refer to the published condensed reviewed interim financial results for detailed insights, including the external auditor’s unmodified review conclusion.
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