Achieves decent interim growth.
Insimbi Refractory and Alloy Supplies Limited released interim results on 8 October 2019 for the six-month period ending 31 August 2019. Despite a very challenging local and global economic environment, exacerbated by the impact of the terrible floods and labour unrest that affected Transnet operations in Durban earlier in the financial year which created a backlog at Durban port that continues to hamper the Group’s export of recycled metals, Insimbi has achieved decent growth on the back of the acquisition of Group Wreck in November 2018.
Commodity and, in particular metals prices, have been subdued in the first six months of the year, and it is estimated that our weighted average basket price of products is between 12% and 15% down on international pricing compared to the same period in the previous interim reporting period ended 31 August 2018. Although this has been partially offset by a weaker currency during the period under review, the ZAR price of said basket is approximately 5% lower across the board.
Insimbi reported an 11% increase in its headline earnings a share from R8.47 to R9.42, while earnings a share saw a 4% increase from R9.12 to R9.48, for the six months ended August 31, 2019. Revenue for the period increased by 13% from R2.1 billion in the prior comparable period, to R2.4 billion, with net profit coming in at R35.8 million for the six months.
Acquisition of Treppo Group Proprietary Limited
Shareholders have also been referred to the Category 2 announcement published on SENS on 20 June 2019 wherein they were advised that Insimbi had extended an offer to the shareholder of Treppo, being Texiflash Proprietary Limited to acquire Treppo.
Shareholders are advised that unconditional Competition Commission approval has now been received, and it is expected that the transaction would be implemented by the end of October 2019.
Insimbi has declared an interim dividend of two cents a share for the period.
For more information contact Insimbi Group of Companies on TEL: 011 902 6930 or visit the website www.insimbi-iras.co.za