Not great cash generation:- R170m of cash generated by ops. came from working capital effects - mainly a build-up in creditors. So only about R200 was generated above that. Granted there is about R30m of interest received to be added but then there is a dividend policy to be supported that removes over R70 and more than depletes this. AND we need to see the effect that WALMART has on this industry. Not really cheap - 15x earnings / 12x time normalised earnings /12x cash generated by ops. I like the capital structure though it gives huge leverage of earnings growth to share price.
The PE is at 15x if one includes BEE deal. HEPs were stated at about 905c. That's about a 10.5x PE. Just waiting for them to bring their div cover down to 2 or below. The cash is piling up fast. Quality business available at a fair price.