Invicta sees earnings increase

Investment holding and management company, Invicta, has announced a significant increase in revenue, with a rise of 8.4%. The company reported revenue of 11.5 billion round, while headline earnings per share surged by 37% to 500 cents. Arnold Goldstone, the CEO of Invicta, joined CNBC Africa to discuss the company's success in the face of a challenging economic environment. Goldstone expressed satisfaction with the company's performance, attributing it to a focus on the basics and a commitment to delivering strong results. Goldstone highlighted the company's exposure to the mining sector, which accounts for approximately 15% of Invicta's revenue. He emphasized the importance of investment in the mining industry, pointing out that while mines are currently operational, there is a need for continued investment to ensure long-term sustainability. Goldstone expressed concern about the impact of regulatory changes, such as the mining charter, on the sector's growth potential. In terms of internal activities, Invicta recently made strategic decisions, including the closure of its Durban facility and the disposal of the building supply group. Despite the challenges associated with these decisions, Goldstone noted that they have proven to be beneficial for the company, with the operating profit showing significant improvement. Goldstone also discussed Invicta's operations in Africa, highlighting the demand for the company's products in the region. He acknowledged the economic challenges in certain African countries but remained optimistic about the long-term potential of the region. Given the current recession in South Africa, expanding operations in Africa and other parts of the world is a key focus for Invicta. In terms of capital equipment and the agricultural sector, Goldstone pointed out the company's ability to grow revenue by 10% despite facing the impact of a severe drought. He attributed this success to an increased market share and an improved sales mix, emphasizing the importance of cost management and maintaining strong relationships with suppliers. Overall, despite the difficult economic climate, Invicta's strong earnings report is a testament to the company's resilience and strategic decision-making. With a focus on the fundamentals and a commitment to long-term growth, Invicta continues to navigate challenges and capitalize on opportunities in the market.