METROPOLITAN has upped its full-year dividend by 9%, saying the increase is indicative of an improved operating outlook. The group declared a final dividend of 60c for the year to end-Dec, resulting in a historical dividend yield of around 7%. Despite the generous dividend payments the group still holds nearly R2bn excess capital on its balance sheet, and investors will be pushing management to provide some indications as to how this is likely to be deployed. METROPOLITAN's embedded value rose by 6% to 1 811/share, and the stock is now trading at a 20% discount to its embedded value. The group cautioned that food and transport inflation, together with rising unemployment, remained the biggest challenges to the group's core customer market.

DISTRIBUTION AND WAREHOUSING NETWORK today reported a 63% decline in HEPS to 31.9c for the six months to end-Dec. from 87.1c y/y. No interim dividend was declared. Revenue for the period declined 16% to R1.872bn due to price deflation of 9% and a 7% decrease in volumes. Operating profit fell 48% to R121.1m and the company said excluding the impact of DPI and Incledon, operating profit would have been down 33%. Profit for the period was 60% lower at R62.2m and headline earnings declined 61% to R58.7m. The company continued to experience the worst market conditions since its inception. Looking ahead, the group said through the focus on cost management, a R180m annualised saving, including R48m finance cost savings, will be realised from H2 2010 with the full impact of interest savings through lower gearing and better borrowing rates.

AFRICAN EAGLE yesterday announced the appointment of DR CHAD CZERNY as metallurgy project manager for the company's Dutwa project in Tanzania. CZERNY is one of the world's top research and development hydro-metallurgists in the nickel laterite field and has worked on many of the best known deposits of this type. He will be responsible for the management and implementation of the metallurgical testwork and engineering design programmes for the Dutwa project.

METROPOLITAN HOLDINGS posted lower 2009 profit after more consumers defaulted or cancelled life insurance policies and the value of its investment assets dropped. Diluted core HEPS for the year to end-Dec. fell 7% to 141c from 151c in 2008. This was in line with its own forecast of a 5-10% drop. The insurer said food and transport inflation remained its biggest challenges. METROPOLITAN's total new recurring premium business fell 9% to R1.159bn, while its embedded value climbed to R12bn from R11.3bn in 2008.

BELL EQUIPMENT expects to report a loss of between 270c and 280c a share when it releases its 2009 financial results on Friday. The company in Dec. warned it expected a loss of 370c-410c a share for the year ended Dec. 31. At the time, the company said that the loss was attributable to difficult trading conditions experienced in 2009. BELL reported earnings of 367c/share in 2008.

DIGICORE plans to consolidate its international operations in a bid to realise its return on investments. The group was reviewing its operations to ensure that each country provided a suitable return on investment and product support. DIGICORE's UK, European and Pakistani businesses continued to take the brunt of the economic downturn and are still struggling to gain momentum. The new divisions in France and the UK reported losses, but the company was upbeat that it would reap the benefits in the near future as sales grow. Despite plans to consolidate its international operations, DIGICORE wants to expand into North and South America. Net profit after tax dropped 59% to R22.8m, revenue declined 13% to R249m. HEPS fell 59% to 10.7c.

TIGER BRANDS yesterday moved to dispel a news report which referred to it as being one of the "targets" of an investigation by the Competition Commission on cartel activities. The group said it had been informed by the Competition Commission that its complaint referral had not yet beem made to the Competition Tribunal. TIGER BRANDS said it entered into an agreement with the Commission in Nov. 2007 whereby it was granted conditional immunity from prosecution before the Tribunal for its involvement in cartel activities in the milling industry, subject to conditions. "In the event that the Competition Commission does refer its milling investigation to the Competition Tribunal for determination with Tiger Brands cited as a co-respondent, no relief is expected to be sought against Tiger Brands," it said.

JPMORGAN has set a higher share price target for ANGLO PLATINUM - the investment bank said it was overweight on ANGLOPLAT, and set a new price target of R995/share from its previous R960/share. ANGLOPLAT's shares declined 1.09% on the JSE yesterday, to close at R696.80. JPMORGAN said ANGLOPLAT was positioned to respond to the improving platinum group metals demand fundamentals after the company's restructuring. It also said that ANGLOPLAT had improved its operations and safety record, and had shut down three unprofitable shafts under CE NEVILLE NICOLAU.

BRITISH AMERICAN TOBACCO pocketed €13.6m on monday in what Sotheby's said was the highest amount for an art auction in Holland. The BATartventure Collection holds more than 1 400 works. The sum doubled its presale upper estimate, and all but four of the 161 lots offered in Amsterdam found buyers. The top price was €1.1m paid for Martin Kippenberger's 1996 oil on canvas Dinosaurierei. Jan Schoonhoven's 1979 work Square with Diagonals sold for €456 750.

GRAND PARADE INVESTMENTS yesterday released interim results which showed a post balance sheet event that involved the issuing of 12.75m new GPI shares at 235cps to an unnamed institutional investor. The share issue, effected at a 6% discount to average weekly volumes, raised about R30m for GPI. The share issue is interesting since GPI last year bought back 19.4m shares at an average price of 224c/share. During that time, GPI's Share Incentive Trust also acquired 7.6m shares in GPI at 220cps. GPI has recently proposed buying out its Australian partners in limited payout machine operator THUO GAMING in a R170m transaction. Results for the 6 months to end-Dec. reflect a net asset value of 368cps. Results showed a 14% decrease in headline earnings, with major investments like SUNWEST and RAH chipping in less profit. THUO Western Cape grew earnings by 25%, while THUO KZN bumped up revenues by nearly 40%.