The group, which previously focused on cannabis sector investments, expects revenue to rise by between 146.78% and 166.78%, reaching approximately R511 million, up from R199m in the prior year.
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Labat Africa has issued a trading update indicating a sharp improvement in its financial performance for the year ending 31 May 2026, with revenue expected to more than double compared to the previous year.
The tech investment group on Monday said it has reasonable certainty that its results will differ by more than 20% from those reported for the year ended 31 May 2025.
The group, which previously focused on cannabis sector investments, expects revenue to rise by between 146.78% and 166.78%, reaching approximately R511 million, up from R199m in the prior year. This surge reflects increased operational activity across its portfolio.
However, earnings per share (EPS) are projected to decline by between 12.85% and 32.85%, to around 8.17 cents per share, compared with 10.59 cents previously.
Despite this dip, headline earnings per share (HEPS) are expected to increase significantly by between 96.48% and 116.48% to about 11.15 cents per share, up from 5.40 cents.
The company also anticipates a solid rise in net asset value (NAV) per share, which is forecast to grow by between 44.57% and 64.57% to approximately 34.36 cents, compared with 22.23 cents in the prior corresponding period.
Labat attributed the improved performance to stronger operational contributions from key subsidiaries, including Classic International and Ahnamu, both of which delivered solid results for their financial year ending February 2026.
The group noted that its consolidated results for the year ending May 2026 will include an additional three months of trading from these subsidiaries, which is expected to further enhance overall performance.
Labat also indicated that its board is considering aligning reporting periods across the group over time, as subsidiaries currently operate on different financial year-ends.
While the revenue growth and improved HEPS point to strengthening fundamentals, the decline in EPS suggests ongoing pressures related to costs, restructuring, or other factors impacting bottom-line earnings.
Shareholders were cautioned that the financial information contained in the trading statement has not yet been reviewed or reported on by the company’s external auditors.
The group is expected to release its full audited results in due course, providing further insight into the drivers behind its performance and outlook for the year ahead.
BUSINESS REPORT