The industrial holding company saw revenue increase to 225 million rand for the six months ending 31 August 2013 from 168 million rand for the same period in 2012.
“Revenue from the period under review increased by 33.8 per cent. The growth in the business is attributable to improving market conditions and additional working capital injected back into the business, from proceeds derived on the sale of PSV Mitech Control Valves Proprietary Limited,” said PSV Holding’s chief executive Abilio da Silva.
“The interim results reflect improved trading conditions from continuing operations. The group successfully unbundled loss-making and cash-hungry businesses during the past year, establishing a stable platform for growth in the forthcoming year.”
Operating profit increased from seven million rand in the six months ended 31 August 2012 to nine million rand for the same period in 2013 and the operating cost ratio was reduced by 24.5 per cent.
“Although operating costs are in line with the previous period, the business has grown by 34 per cent and operating costs, as a percentage of turnover, has decreased by 24.5 per cent to 14.1 per cent. The decrease is largely due to the continual assessment of cost-cutting measures implemented at head office, and the disposal of loss-making operations,” said da Silva.
Profit before taxation from continuing operations increased from five million rand in 2012 to eight million rand in 2013, headline earnings increased from four million rand to five million rand, and diluted headline earnings per share increased from 1.66 cents to 1.99 cents.
“The remainder of the financial year is viewed as a year of consolidation for PSV, where the main aim is to focus on profitability, working capital management and cash flow generation,” da Silva said.
“The domestic market continues to show sustainable growth in the industrial segments in which we operate and PSV will be looking to maximise efficiencies and gain market share to improve profitability.”