Huge Group will be back in the black for the year to February, because of a "substantial" supplier discount and improved operating results, it says.
The company told shareholders yesterday its earnings will shoot up by 200% in the year to February 2014. Although these results will only be released by the end of May, JSE rules require companies to declare as soon as they are aware earnings will differ by at least 20%.
The statement sent its stock up 18.33% to close at 71c. By comparison, the JSE's all share index closed 0.19% higher.
Huge says the improved earnings are because it successfully negotiated a "substantial" supplier discount and has improved its operating results. Its earnings per share will go from an 11c loss to an 11c gain, a 200% improvement, while headline earnings will shoot up 500%, from a 4.1c loss to more than 16c a share in the black.
For the year to February, Huge reported revenue R266 million, while its gross profit margin gained from 19.4% to 29.7%. However, its net loss widened to R11.9 million, from R4.4 million.
At the time, CEO James Herbst said Huge was a "new" business after changing the way it works and was operationally solid.
Share
