Long4Life sees decline in headline earnings on COVID-19 impact
Long4Life has reported a 26 per cent drop in headline earnings per share for the year ended February. This is from the prior comparable period. Trade in the three group divisions was severely restricted for the majority of the first half of the year. The company has not declared a dividend. Long4Life CEO, Brian Joffe joins CNBC Africa for more.
Thu, 13 May 2021 16:12:11 GMT
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AI Generated Summary
- Long4Life reported a 26% drop in headline earnings per share for the year ending February
- The company's three group divisions faced trade restrictions due to COVID-19
- Efforts are focused on putting the company on a growth platform and exploring potential mergers
Long4Life, a listed company on the JSC, has recently reported a 26 per cent drop in headline earnings per share for the year ending February compared to the prior year. The company's trade in the three group divisions was severely restricted for the majority of the first half of the year, leading to a challenging financial period. Long4Life CEO Brian Joffe joined CNBC Africa for an interview to discuss the company's current position and future strategies.
During the interview, Joffe addressed the company's strategic review and the possibility of unbundling some assets. He emphasized that the focus is on putting the company on a growth platform to expand its operations. Although there were discussions about potential mergers and acquisitions, Joffe clarified that there are no immediate plans to dispose of any assets.
Joffe also discussed the impact of the COVID-19 pandemic on Long4Life's various business divisions. The Solbe division saw a revenue decline due to closures during the lockdown period, but Joffe noted that the performance has improved in the second half of the year. The sporting division faced challenges with gym memberships being canceled, but sales of home gym equipment increased. Overall, Joffe highlighted that the businesses are trading at levels similar to or better than pre-COVID times.
When questioned about future profit growth, Joffe expressed optimism for the current financial year and emphasized the company's budgeting process to achieve growth. He also addressed the company's share price and the recent share buyback, stating that the buyback was aimed at enhancing shareholder value rather than solely boosting the share price. Joffe acknowledged that the share price may not fully reflect the company's underlying value and mentioned plans to explore opportunities for growth and potential mergers.
Regarding the company's cash reserves, Joffe confirmed that there is around 570 million Rand available and explained that the focus is on utilizing the cash strategically to support the company's growth objectives. He reiterated the importance of enhancing shareholder value and creating opportunities for the business to thrive.
As Long4Life continues its strategic review and evaluates potential pathways for growth, shareholders are awaiting further clarity on the company's future direction. With a strong emphasis on maximizing value and unlocking growth opportunities, Long4Life remains focused on navigating the current challenges and positioning itself for sustained success in the market.