Following a successful turnaround at the fertiliser, chemicals and mining explosives producer Omnia, the company has resumed dividends - and is also paying a special dividend.
This follows a two-year restructuring process the company undertook to deal with a R7 billion debt pile. This included a rights offer and various disposals, which has wiped out all its debt. The company now has net cash of R1.3 billion on hand.
On Tuesday, the group’s annual results for the year ended 31 March 2021 showed that its operating profit rose by 61% to R1.2 billion from R744 million in 2020. Its revenue from continuing operations remained flat at R17.8 billion..
Its headline earnings per share from continuing operations rose by 154%, from R1.54 to R3.91. As a result of its performance, the group has declared a gross cash dividend of R2 per ordinary share, as well as a special dividend of R4 per ordinary share.
“These results reflect a resilient performance achieved through continued delivery against our strategy in a challenging and dynamic environment that required decisive management action and agility,” said Omnia’s CEO Seelan Gobalsamy, in the company’s results statement on Tuesday.