Invicta’s profit to rocket after recovering from tax provision
The industrial supplies conglomerate had been hit with an unforeseen tax liability of R200m
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.