Impala Platinum Holdings Ltd (Implats) has recorded a 25 per cent reduction in underlying profits.

The cut is being attributed to the effects of the rand's swift and continuing rise in value, particularly noticeable for the pgm exporter, whose income is dollar-based.

Headline earnings for each share were 51.40 for the year ending this June, compared to 68.77 rand last year, the company said in a statement.

Operating profit declined by 18 per cent to 5.03 billion rand, and revenue fell from 11.9 billion to 11.8 billion.

Interim figures released by the firm in February indicated that results would be 'significantly down' at the end of Implats' fiscal year.

Profits declined throughout the year in line with a 40 per cent rise in the rand's strength compared to the dollar.

Implats is currently in the process of mounting a takeover for Zimbabwe Platinum Mines Ltd (Zimplats), which has declared support for its venture partner.