Invicta Holdings reports constructive interim results - CNBC Africa

Invicta Holdings reports constructive interim results

Earnings

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Invicta saw revenue increase to 5.1 billion rand for the six months ending 30 September 2013. PHOTO: Criterion

The investment holding and management company saw revenue increase to 5.1 billion rand for the six months ending 30 September 2013 from 3.5 billion rand for the same period in 2012.

“The group has again delivered strong results in markets characterised by labour unrest in South Africa and a marked deterioration in the rand. The tough trading conditions in the industrial consumables market in South Africa, served by BMG, continued during the period under review,” said [DATA IVT:Invicta Holdings Limited].

“Labour unrest was particularly debilitating in the mining and automotive industries. Capital equipment markets, served by CEG, experienced mixed conditions demand for earthmoving machinery improved while demand for agricultural machinery declined.”

Operating profit rose 57 per cent from 314 million rand for the period ended 30 September 2012 to 492 million rand for the 2013 period, and interest and dividends received increased from 261 million rand to 286 million rand.

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Profit before taxation was up 64 per cent from 258 million rand in 2012 to 423 million rand in 2013, headline earnings increased from 226 million rand to 259 million rand, and diluted headline earnings per share rose 18 per cent from 298 cents to 351 cents.

“Trading conditions in the second half of the year are expected to be similar to the first half. The labour unrest in the mining and automotive industries has been resolved, although at the time of going to press with this report, there were rumblings of fresh unrest in the mining sector,” Invicta Holdings said.  

“This underscores the challenges of doing business in South Africa, which is entering an election year. Notwithstanding the above, Invicta will continue to do what it has done well in the past manage its operations soundly while seeking out acquisitions and opportunities for growth.”

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