reports
- Steph Erasmus
Omnia | More questions than answers?
Despite an improved financial position, Omnia is not creating positive economic value added in its divisions. Omnia experienced complications in the ramp-up of its new nitrophosphate plant. Due to the delays, we expect the guided cost savings (c.ZAR 100m) from the new nitrophosphate plant to materialise 12 months later than initially guided. Disappointingly, Omnia management could not guide how much of the nitrophosphate cost savings were in the base in H1 '20, making forecasting challenging....
- Steph Erasmus
Omnia | Making progress
Omnia has entered an underwriting agreement with various institutional asset managers to raise ZAR 2bn at a rights offer price of ZAR 20ps. Omnia will offer existing shareholders c.1.47 shares for each existing Omnia share that the shareholders own. The new underwriting agreement allowed Omnia to end its standby underwriting agreement with four South African banks, which should be positive for Omnia from a cost viewpoint. Omnia is obtaining the prescribed regulatory approvals for its rights o...
- Steph Erasmus
Omnia | Banking on a chemical reaction
Omnia has entered into a standby underwriting agreement with Absa Bank Limited, Investec Bank Limited, Rand Merchant Bank and Standard Bank of South Africa Limited. The four banks have undertaken to severally underwrite 25% of the ZAR2bn proposed rights offer each. The underwriting agreement provides reassurance of Omnia's going concern status. However, uncertainty around Omnia will continue until shareholders provide approval on 25 Jul ‘19 and a rights issue price is established. Despite ...
- Steph Erasmus
Omnia | Spread thin
Omnia is stretched across multiple fronts, which is exacerbated by ZAR 4.6bn of debt that has accumulated given two large acquisitions (ZAR 2.1bn) and the development of its nitro phosphate plant (ZAR 0.7bn). While we expect its Agricultural business to rebound, we see specific risk in its Mining and Chemicals' businesses. We have little confidence in the Mining business rebounding after the profit margins halved from 16.8% to 7.9% over the past five years and the Chemicals business is undergo...
- Steph Erasmus
Omnia | Better late than never
In our view, OMN is currently under-priced. However, the reversal of its H119a working capital position influences our view. The Group expects its new nitrophosphate plant to be completed in March 2019. The Group also disclosed that its nitric acid facilities are not running at its targeted 90% capacity. The nitrophosphate plant uses nitric acid as a feedstock into its production process and should increase the Group's nitric acid plant capacity usage by c.4%. We expect agricultural margins...
1 director sold
A director at Omnia Holdings Limited sold 17,955 shares at 128.030ZAR and the significance rating of the trade was 60/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years...
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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