Shareholders are advised that CIL’s earnings/loss per share (“EPS”) for the financial year ended 31 August 2018 is expected to be a loss of between 1020 cents per share and 1050 cents per share, compared to the loss of 77.47 cents per share for the financial year ended 31 August 2017. The headline earnings/loss per share (“HEPS”) for the financial year ended 31 August 2018 is expected to be a loss of between 720 cents per share and 750 cents per share, compared to the headline loss of 77.94 cents per share for the financial year ended 31 August 2017.
The full year results include the ongoing restructuring initiatives highlighted in the interim results for the six months ended 28 February 2018 (“Interim Results”), including the write-down of R609 million of goodwill and the carrying value of investments in joint arrangements, which together with the reversal of approximately R400 million of deferred tax assets previously recognised at the interim period, had a material impact on the results of CIL. Overall, cash generated from operations was positive, reflecting an improved contribution from the Group’s non-EPC (Engineering, Procurement and Construction) businesses. As indicated in the Interim Results, while restructuring initiatives at Consolidated Power Projects Group Ltd. are delivering improvements, the costs associated with the process remain high and continue to impact negatively on profitability.
The reviewed results for the year ended 31 August 2018 will be released on or before 30 November 2018.
Update on the Recapitalisation Transactions
CIL shareholders are referred to the various announcements released on SENS on Friday, 18 May 2018, Monday, 30 July 2018 and Wednesday, 29 August 2018, regarding the R1.1 billion recapitalisation of CIL (“the proposed transaction”).
The R300 million Upfront Loan was advanced by Fairfax Africa Holdings Corporation (“Fairfax”) before the end of the financial year and was applied to boost the Group’s cash resources.
In respect of the R800 million Rights Offer, which is fully underwritten by Fairfax, all conditions to give effect thereto have been met, barring the approval from the Tanzanian competition authorities, which approval is expected to be received in the near future. This may result in the Rights Offer period running during the second half of December 2018, which may be an inconvenient time for certain CIL shareholders. CIL wishes to inform CIL shareholders of this possibility and to confirm that notwithstanding the inconvenience, CIL is committed to concluding the Rights Offer as soon as possible.