Pepkor expects its headline earnings per share (Heps) for the financial year to September 30, 2021, will increase by 94.7% to 114.7% (127.5 cents to 140.6 cents).

In its trading statement on Friday Pepkor ascribed the increase to several factors, including an improved trading performance compared with FY20,which was impacted by the Covid-19 trading restrictions; as well as reduced finance costs, due to a marked reduction in the company’s net debt and impairment charges recognised during FY20 which specifically impacted earnings per share.

Another factor was the lease modification gains in terms of IFRS 16 as a result of favourable lease renewals and retail footprint consolidation in specific retail brands.

“The acquisition of a portfolio of leased properties as announced on April 14 on Sens resulted in the derecognition of related right-of-use assets and lease liabilities,” the group said.

The share has climbed steadily over the past year and is up almost 90% year-to-date after falling in 2020.