By John Bowker
JOHANNESBURG – PPC Ltd., South Africa’s largest cement maker, plunged deeper into disaster after reporting accounting errors and delaying the discharge of full-year earnings for a second time.
Errors have been made in valuing operations in Ethiopia and Zimbabwe within the 12 months by way of March 2019, the Johannesburg-based firm mentioned in a press release on Tuesday, whereas it additionally miscalculated the accounting of a foreign-exchange transaction within the Democratic Republic of Congo. These errors have now been corrected, PPC mentioned.
The emergence of monetary discrepancies comes at a vital time for PPC, which has plunged greater than 80% in worth over the previous 12 months as South Africa’s weak financial system and the worldwide Covid-19 disaster hammered demand for constructing supplies. The 128-year-old enterprise mentioned this month it wants to barter with South African lenders to defer repayments and procure entry to additional borrowings, whereas a rights difficulty can be being thought-about to strengthen the corporate’s funds.
PPC nonetheless hasn’t revealed annual outcomes for the 12 months by way of March, at first making the most of a regulator-approved extension on account of challenges attributable to the coronavirus lockdowns. Ongoing discussions a couple of potential capital restructuring have led to the necessity for an additional delay, PPC mentioned in its newest launch, with publication pushed again to the tip of September from Aug. 31.
The corporate on Tuesday mentioned primary earnings per share are anticipated to replicate a lack of between 110 and 130 cents per share in contrast with the restated 9 cents per share achieved for the prior comparable interval ended March 31, 2019.
PPC mentioned it skilled double-digit development in volumes in June and July after pandemic lockdown restrictions have been lifted, however warned this can be non permanent.
The shares rose 7.7% to 0.84 rand as of 11:05 a.m. in Johannesburg.