Cell C pain finally over for Blu Label
The company says the Cell C write downs are behind it, with a clean balance sheet and growth plans ahead.
Blu Label Unlimited (BLU) is set to enter the new financial year with a clean slate following the removal of write downs related to its investment in Cell C. The company reported a R4.9 billion loss for the year to May after Cell C's separate listing in November exposed the discrepancy between its paper value and market value. BLU co-founder and joint CEO Brett Levy highlighted that the core business is strong, generating R923 million in earnings before interest, tax, depreciation and amortisation, and net profit after tax of nearly R680 million.
The company declared a final dividend of 10c per share, totaling 53.56c per share for the year, and its interim dividend of 43.56c per share was its first in eight years. BLU targets an annual payout between 30% and 50% of its core headline earnings, which could be in the form of dividends, share repurchases, or a combination of both.
The company aims to buy back shares as long as it believes the action is accretive. Levy expressed disappointment with the financial reports, stating that the company will now have a clearer picture of its business without the complex Cell C-related costs.
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