Positive profit warning from CAFCA

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LISTED cable manufacturer, CAFCA, has said its earnings for the current trading year will be significantly higher than the earnings reported the previous year.
In a statement issued yesterday, the company said its earnings per share (EPS) for the year are projected at 4,5 cents per share, representing a 542,86 percent increase from the previous period’s EPS of 0,7 cents per share.
The company said basic earnings per share and headline earnings per share for the full year would be approximately 4,5 cents per share, which is above the 0,7 cents per share for the previous year.
EPS is an approximate measurement of the amount of a company’s profit that can be allocated to each share of its stock. An increase in a company’s EPS generally follows improvements in the income of the company.
CAFCA said its profitability had been improved by copper market developments, favourable trading terms and changes in its product mix.
“Profitability has been improved by a favourable copper price, changes to trading terms and a change in sales mix from aluminium to copper products,” the company said in the trading update.
The company reported a 73,48 percent increase in profit for the year ended September 30, 2017 with a profit after tax of $726 213.
During the previous year, the company benefited from statutory import protection, as well as the lack of competition from imports on account of foreign currency shortages. The company is expected to announce results for the six months ending March 31, 2018, in May this year.
CAFCA manufactures and supplies cables for the transmission and distribution of energy and information. It has its primary listing on the Zimbabwe Stock Exchange and secondary listing on the Johannesburg Stock Exchange.
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