DURBAN – JSE-listed Taste Holdings has said that its loss per share was expected to improve between 33 and 35percent for the six months to end August.
This was mainly due to the increase in weighted average shares in issue on the back of the rights issue of 1.32 billion shares concluded in February.
The group said in a trading guidance yesterday that its loss a share was anticipated to fall to between 5.3cents a share and 5.5c from 8.2c reported last year.
Taste Holdings managed to raise R132million through a rights offer to qualifying shareholders at a subscription price of 10c a rights offer share early this year.
It said headline loss a share would increase up to 34percent to between 5.3c and 5.7c, compared to a loss of 8c for the six-month period to end August 2018.
“The improvement in headline loss per share is mainly due to the increase in weighted average shares in issue – on the back of the rights issue of 1.32billion shares concluded in February 2019,” the group said.
Last month Taste Holdings shocked the market, announcing that it was selling its South African Starbucks franchise for R7million to an entity called K2019548958 following detailed operational reviews.
The group said that it was also offloading food brands Maxi’s and The Fish & Chip Company as part of its continuing change and new strategic direction.
In June the group said that its losses widened 32percent during the year to end February, as high operating costs and once-off impairment costs continued to impact on the company’s earnings in the year to the end of February.
It said that impairments and once-off costs rose to R102m during the period from R24m last year, with R58m attributed to the food division and R44m to the luxury goods division.
Taste Holdings’s majority shareholder Sean Riskowitz said Taste was now focusing on its jewellery brands that include NWJ Jewellery and Arthur Kaplan.
The group is expected to release its half-year results next week.
Taste Holdings share price declined 25percent on the JSE yesterday to close at 3 cents.