SHARES in Phumelela, the tote betting and alternative gaming group, sprinted to a new high on Friday after the company released strong results and signalled compelling prospects for the new financial year. Phumelela’s shares finished at R25.99, up 13.5% on the previous day’s close. Phumelela CEO Rian du Plessis said the company was delivering the expected returns from investments made in the fixed-odds retail segment. He believed there would be a further improvement in profitability in 2017. In the year to end July, Phumelela posted a 40% gain in earnings to R123m or 164.5c per share. The final dividend was increased 17% to 70c per share, making a full-year payout of 104c per share. Cash generated by operations grew a reassuring 52% to R143m, which is equivalent to 191c per share. Du Plessis said the acquisition of 50% of sports betting specialist Supabets would create synergies to enhance growth at its Betting World outlets.
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