AECI Limited - Voluntary Trading Update for the five month period ended 31 May 2025
(Incorporated in the
Registration number: 1924/002590/06
Share code: AFE ISIN: ZAE000000220
Bond company code: AECI
Hybrid code: AFEP ISIN: ZAE000000238
LEI: 3789008641F1D3D90E85
("AECI" or the "Group" or the "Company")
VOLUNTARY TRADING UPDATE FOR THE FIVE MONTH PERIOD ENDED
STRATEGY EXECUTION CONTINUES
AECI continues to execute its strategic plan, with a clear focus on building a high-performance culture with engaged employees, optimising its business portfolio, achieving operational, functional and commercial excellence and expanding its international presence.
In the five months ended
-- progression of the roll-out of the Leadership Compact and Culture Code,
which included the completion of a comprehensive culture survey giving
invaluable insights into employees' experiences of the AECI culture;
-- merging of the AECI Mining's Modderfontein Corporate Office into the
Group's Woodmead Corporate Office;
-- disposal of the Much Asphalt business for R1.1 billion;
-- continued progression of the AECI Schirm Germany restructuring;
-- an increase in the cumulative Earnings Before Interest, Taxes,
Depreciation and Amortisation ("EBITDA") run rate to R1 billion from the
reported R800 million for the year ended 31 December 2024 , relating to
the Transformation Management Office ("TMO") initiatives; and
-- growth of AECI Mining's international operations, underpinned by new
contract wins and improved margin performance in the Asia-Pacific
region .
The achievement of these key strategic milestones continue to position the Group well in driving operational efficiencies, boosting profitability and laying a solid foundation for sustainable long-term growth.
RESULTS
The Group results for the five-month period ended
Revenue for the period ended
-- improved margin performance in AECI Mining's Asia-Pacific region and
steady operational performance in Mining Chemicals;
-- a reduction in the strategy implementation costs in AECI Property and
Corporate Services ; and
-- continued conversion of the EBITDA run rate relating to the TMO into
profit and loss, albeit lower than expectation; partially offset by:
-- the impact of the South African based operations, in both AECI Mining
and AECI Chemicals, which are facing challenges as further described
below.
Extracts of key financial indicators
___________________________________________________________________ |R million# |YTD31 May 2025|YTD31 May 2024*|Change| |_____________________________|______________|_______________|______| |Revenue |13 065 |13 352 |(2%) | |_____________________________|______________|_______________|______| |EBITDA |1 248 |1 118 |12% | |_____________________________|______________|_______________|______| |EBITDA margin |10% |8% |2pt^ | |_____________________________|______________|_______________|______| |Profit from operations |800 |685 |17% | |_____________________________|______________|_______________|______| |Profit from operations margin|6% |5% |1pt^ | |_____________________________|______________|_______________|______|
# Continuing operations
* Comparative prior period results have been reclassified in accordance with International Financial Reporting Standards (IFRS 5: Non-current Assets Held for Sale and Discontinued Operations) - Much Asphalt (now disposed of) is classified as a discontinued operation. Results for the comparative five-month prior period have been restated accordingly .
^ pt: percentage points
Net finance costs (from continuing operations) improved by 40% from the comparative five-month period, due to lower debt balances, mainly resulting from the proceeds received for the Much Asphalt divestment concluded in the first quarter of 2025.
The Group's net debt position as at
OPERATIONAL PERFORMANCE
Safety
In line with the corporate strategy execution, the Group has been unwavering in its efforts to review and reinforce safety best practices. The Group's safety reboot campaign continues to yield positive results on safety indicators. Total Recordable Injury Rate as at
AECI Mining
The
Pleasingly, AECI Mining has successfully been awarded four new contracts in the
The South African
The Mining Chemicals business, while also being linked to the South African mining industry performance, is performing to expectations, particularly in the metallurgy segment.
AECI Mining will remain focussed on strong fixed cost and capital allocation across the course of 2025.
AECI Chemicals
Management is implementing internal initiatives in AECI Chemicals to boost performance in the latter half of the year.
Managed Businesses
The restructuring process at AECI Schirm Germany is progressing well, with strong execution aligned with established milestones. The operations are showing an expected return to a cash breakeven position in the second half of the financial year, largely driven by streamlined cost initiatives. The remaining Managed Businesses are performing to expectation.
The previously announced sale of
CONCLUSION
The Company expects to report an overall improvement in the Group's results for the six months ending 30
June
2025 compared to the performance for the six months ended
AECI anticipates publishing its interim results for the six-month period ending
The Group will host a pre-close call today,
DISCLAIMERS
The financial information on which this voluntary trading update is based has not been reviewed or reported on by the Group's external auditors.
This voluntary trading update contains certain forward-looking statements. These statements are based on current estimates and projections of the Executive Team and the Board of Directors of the Company, as well as currently available information.
Forward-looking statements do not guarantee the future developments and results outlined therein. They depend on several factors, involve various risks and uncertainties, and are based on assumptions that may not prove to be accurate.
Woodmead, Sandton
Equity Sponsor: One Capital
Debt Sponsor:
