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Clicks ready to dispense dividend despite Covid-19

It's not just the spread of Covid-19 that has been slowed by the wearing of face masks, home schooling and other lockdown restrictions: fewer South Africans have caught the cold or the flu this winter. While Clicks says this has affected sales at its pharmacies, it has still had a strong year and plans to stick to its dividend policy for the year.

If you're a shareholder in a local bank, don't get your hopes up. Some have already advised they won't be paying a dividend this year following guidance from the Reserve Bank's Prudential Authority due to the stress that Covid-19 could place on the financial system. While FirstRand and Absa both stressed the soundness of their respective balance sheets yesterday, they have warned that earnings will be significantly lower as credit impairments rise.

Meanwhile, Harmony Gold Mining is just the latest gold mining companies to illustrate how it has benefitted from the rising gold price. Despite lower production as a result of Covid-19, it says it will report strong operating cash flows as a result of the higher bullion price.

Also in today's newsletter, Peregrine still has some hurdles to overcome for its private equity buyout to proceed and Redefine Properties is disputing a structured financing transaction that it entered back in 2013.

 I hope you have a good day.

Stephen Gunnion

Managing Editor, InceConnect

 

BizNews The Insider 

How tobacco bosses play politicians: See this 8-point plan

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South Africa’s tobacco ban has underscored that the cigarette trade is not your ordinary type of business. The prohibition has served to boost the profits of manufacturers, who were already generating huge returns out of our collective nicotine addiction before they moved to the underground market.

Fuelling suspicions that politicians have been captured by corporates, and as a result have shoehorned the ban on cigarette sales into Covid-19 restrictions, is this interesting slide (below). It was leaked from deep inside Philip Morris International, a multinational with 73,500 employees selling to 150m smokers worldwide, and shared this week by the African Centre for Tobacco Industry Monitoring and Policy Research as an example of how tobacco corporates operate.

The strategy shows, quite clearly, that the tobacco giant puts much thought, energy and money into winning a political game, building political allies and completing a “political power map”. Journalists and activists are manipulated; consumers are skilfully wooed by influencers. We are all being played by cigarette manufacturers - but especially the politicians.

tobacco PS: In today's BizNews Finance Friday webinar, to answer your burning money questions are Debbie Netto-Jonker, an award-winning financial planner who divides her time between Australia and South Africa, and SA and global property expert Andrew Golding, of Pam Golding Properties: https://attendee.gotowebinar.com/register/4798730946457764880.

 

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The Watt Club

Founded in 1854, The Watt Club is understood to be the oldest alumni association in the UK. Lifetime membership is automatic upon graduation from Heriot-Watt, and is free to all graduates of the University.

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Watt News August 2020

Engineers create face mask buckles for national cricket team

Engineers from Heriot-Watt have been working together to design and produce face mask buckles for the UAE national cricket team. With people finding it difficult to manage prolonged use of their protective face masks and athletes struggling to keep their face masks properly secured during intense physical activity, the team engineered their solution. Their face mask buckles are made from thin sheets of recyclable plastic specifically selected due to its high flexibility and light weight which helps in securing the face masks in place, especially during intensive training and sports activity.

Heriot-Watt joins Rwandan project to support farmers

A new centre in Rwanda for sustainable cooling will help get farmers’ produce to market quickly and efficiently – reducing food waste, boosting profits and creating jobs. The new centre, which is operational and already conducting feasibility studies, will link the country’s farmers, logistics providers and agri-food businesses with a range of experts and investors. Lord Goldsmith, UK Minister of State for Pacific and the Environment, said:"Sustainable cooling can improve our food security, reduce food waste, protect vital vaccines, and reduce emissions of climate-damaging refrigerant gases. The UK is a pioneer of innovative, climate friendly cooling solutions and we look forward to working with others to advance this important work.”

Virtual Reunions

Have you ever wanted to arrange a reunion but geography or logistics got in the way? Then, what better way to get together with old friends than with a virtual reunion. We can reach out to former classmates on your behalf, send out invitations and advertise your event on Watt Club Connect. All that's left to do is choose a time and date that suits you. If this is something you be interested in organising please feel free to get in touch at watt.club@hw.ac.uk


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