2016 RESULTS RESTATED
Rolfes Holdings cites rise in revenue and normalised operating profit
‘It has been a long process to reach proper numbers,’ says CEO Lizette Lynch
Rolfes Holdings says revenue from continuing operations rose 9.7% to R1.44bn as normalised operating profit from continuing operations increased by 5.2% to R138m in the year to June 2017.
This comes after the supplier of silica, chemical and pigments products restated its results in financial 2016 to correct "material errors". Compared with the restated results, normalised headline earnings per share from continuing operations rose 8.1%, to 50.5c per share in 2017.
"It has been a long process to reach proper numbers," CEO Lizette Lynch said on Monday. The group had constantly evaluated whether to put out stock market updates after the sudden exit of former group financial director Johan Ferreira on May 12 2017. Ferreira was immediately replaced by Richard Buttle as acting group chief financial officer. Buttle was former finance chief of JSE-listed Metrofile Holdings.
In a trading update on September 20 2017, Rolfes had said accounting errors and understatements of impairments relating to prior periods had been identified by new auditors and the acting chief financial officer. These mainly related to its Botswana water business and previously manufactured lead chrome pigment product ranges subsequently disposed of. In addition, the group’s silica mining operations were discontinued in financial 2017 as a result of poor economic conditions.
"I think the results were good and Rolfes is in sound stead going forward," Anthony Clark, an analyst at Vunani Securities, said on Monday. But Rolfes had been tardy in updating shareholders, he said.