Christo Wiese. Picture: REUTERS
Christo Wiese. Picture: REUTERS

Christo Wiese’s industrial holding company, Invicta, said on Wednesday profit would surge by at least R200m in its six months to end-September as it recovers from an unforeseen tax provision.

The industrial supplies conglomerate said headline earnings per share would rise to 187c from 2c previously — an increase of almost 10,000%.

Profit would rise by at least R200m, from R8.7m previously.

In September 2018, Invicta said it had reached a settlement with the SA Revenue Service (Sars) in which it would pay R750m in respect of a taxation dispute, over the course of four years.

This resulted in Invicta raising an additional specific taxation expense of R200m in its six months to end-September 2018, resulting in the settlement amount being fully provided for. The tax dispute related to a previous empowerment structure put in place by the company.

Invicta's share price was unchanged at R21.01 as of 10.30am on Wednesday, having fallen 39.63% so far in 2019.

gernetzkyk@businesslive.co.za