Omnia sinks after flagging a half-year loss. All three main areas of the chemical and fertilizer group's business performed

poorly in the six months to end-September.

Omnia has warned of a sharp fall in first-half earnings due to a tough period

for all segments of its business. Its shares fell as much as 16%.

In a trading statement, the chemicals group said margins in its fertilizer

sales had suffered due to the pressure facing farmers, while its Mining

business was also operating under tight conditions, as was its Chemicals

business.

It expects to report a loss of much as 114 rand million for the six months to end-

September, with basic earnings likely to be in a range of 120% to 140% lower.

It said headline earnings per share for the period would be down by the same

margin at a loss of between 84c and 168c.

Omnia said its Agriculture division would report lower profit due to the

delayed planting in certain territories. In its mining division, margin

pressure on emulsions, detonators and accessories, as well as a further write-

down of a problematic debtor in Angola of 44 rand million where the client

defaulted on the payment arrangements committed to in the prior reporting

period would affect earnings. Its Chemicals division had been impacted by a

constrained manufacturing and mining sector. Foreign exchange losses and a

bigger interest bill were also to blame, it said.

Shareholders are reminded of the cyclical nature of the group's Agriculture

business which constitutes approximately half of Group revenue," the person

who said it here which is red "Profitability for the first six months of the

financial year is historically low with this business peaking during the South

African summer planting season that typically runs from September to December

each year."

It said Protea Chemicals, which forms part of its Chemicals division,

continued to face deteriorating market conditions and was being restructured

following a review of its business strategy.

Omnia's shares closed 10.7% down at 103.60 rand.

Nightmare trading update from Omnia. Profit becomes a loss. Everything going

against it. Bids have disappeared. This stock is going to tank badly today..

-- Keith McLachlan (@keithmclachlan) November 12, 2018

Omnia now loss making. Just a further sign of continued weakness in SA

economy.

-- Dave Hazelwood (@hazelwood_dave) November 12, 2018