Faritec has repurchased almost 6% of its shares on the open market for just more than R7 million.
The company says the repurchase of 8 190 450 shares, in terms of a general authority granted by shareholders in December, means it is authorised to buy another 16 747 279. That authorisation is valid until the next AGM.
The share buybacks, which were funded from available cash resources, took place over the past two months, at prices between 82c and 100c per share, amounting to R7 020 919.
It adds that its board believes that over the next 12 months Faritec will be able to repay its debts in the ordinary course of business and that its consolidated assets will exceed its consolidated liabilities.
It also believes its ordinary capital and reserves, as well as its working capital, will be sufficient to meet its needs in the next 12 months.
The shares bought back are being held in treasury by a Faritec subsidiary.
The effects of the repurchase, assuming earnings for 1 January to 30 June this year, would be to decrease net asset value per share from 62.4c to 60.9c, with earnings per share static at 6c.
The calculation also assumes net interest income was reduced by R127 000.
Faritec recently reported an increase in headline earnings per share to 6.2c for the six months to 31 December 2001, from 3.2c in the same period of 2000.
Attributable earnings rose to R8.25 million from R4.52 million on revenue of R152.24 million (2000: R118.08 million).
Share
