Trading Day – Nampak reports loss with uncertainty about future

Nampak reported a loss per share of R0.23, with material uncertainty related to remaining a going concern.

Nampak directors are of the opinion that the going concern assumption is still appropriate given the plans they have put in place, including a rights issue of up to R2 billion.

U.S. markets remained relatively flat on Friday, with the S&P 500 closing 0.1% lower and the Nasdaq declining 0.2%.

The Nikkei 225 is flat in early morning trade, hovering around last week’s close.

The Hang Seng index jumped 3.4% as China relaxed some cities’ strict virus testing rules.

Apple supplier Foxconn expects its iPhone factory in Zhengzhou, China to return to full output around the end of the year.

Meanwhile, Northrop Grumman has unveiled the next-generation B-21 nuclear bomber designed for U.S. Air Force.

Here is the biggest news of the day.

• Nampak reports losses – notes uncertainty related to going concern. Revenue for the year ended September increased 21% to R16.9 billion. Despite this, headline earnings per share (HEPS) declined 42% to R0.36, while basic earnings per share (EPS) changed from R0.32 last year to a loss of R0.23 this year. The results announcement noted a material uncertainty related to remaining a going concern, but the directors are of the opinion that the going concern assumption is still appropriate given the plans they have put in place. In an earlier announcement, Nampak noted that it would seek a rights issue of up to R2 billion.

• York Timber seeks R250 million rights issue. York intends to raise R250 million by way of a partially underwritten renounceable rights offer of 142 857 142 ordinary shares with a par value of R0.05 per share. The rights offer will be offered to qualifying shareholders in the ratio of 43.12791 rights offer shares for every 100 York Shares.

• Sabvest Capital (Sabcap) has acquired a 39.3% equity interest in Valemount Trading from the R & K Trust. Sabcap will also provide Valemount with immediate shareholder loan funding and expects to provide additional loans and guarantees for the future funding of Valemount’s growth and acquisitions.

• Oceana Group reports a healthy increase in earnings. Revenue for the year ended September increased 11% to R8.4 billion. Earnings per share (EPS) is up 6% to R6.03. The group had a difficult start to the year, impacted by low inventory levels due to global supply chain disruptions the previous year. It managed to recover well with a strong second half. Oceana managed to improve its gross margin by 0.8% to 30.8% on the back of strong fishmeal and fish oil prices. The company declared a final dividend of R2.91 per share, bringing the total dividend for the year to R3.46 per share, down 3% from last year.

• Apple supplier Foxconn expects its iPhone factory in Zhengzhou, China to return to full output around the end of the year. A Foxconn source cited by Reuters said they expect to resume full production around late December to early January. “The capacity is now being gradually resumed” with new staff hiring underway, said the person, who declined to be named. “If the recruitment goes smoothly, it could take around three to four weeks to resume full production,” the person said.

• Northrop Grumman unveils next-generation B-21 nuclear bomber for U.S. Air Force. Northrop Grumman Corp on Friday rolled out its new B-21 “Raider” jet, the first of a new fleet of long-range stealth nuclear bombers for the United States Air Force. The B-21, which carries a similar “flying wing” shape to its predecessor, the B-2, will be able to deliver both conventional and nuclear weapons around the world using long-range and mid-air refuelling capabilities. The aircraft was projected to cost approximately $550 million each in 2010 dollars, or about $750 million in today’s inflation-adjusted dollars. The Air Force planned to buy at least 100 of the planes and begin to replace B-1 and B-2 bombers. Engine-maker Pratt & Whitney, Collins Aerospace, GKN Aerospace, BAE Systems, and Spirit Aerosystems are among the more than 400 parts suppliers.