Invicta Holdings CEO: Ramaphosa might have given us the dream but he hasn’t given any specifics

Invicta Holdings, a diversified industrial group, has faced one of its most challenging years yet as the South African economy grapples with various sectoral stresses. In a recent interview with CNBC Africa, Arnold Goldstone, the CEO of Invicta Holdings, shed light on the difficulties the company has encountered and the strategies it has employed to navigate through these tough times. Goldstone highlighted that every sector the company operates in, from business services to mining, manufacturing, agriculture, construction, and general industry, has faced significant pressure over the last year. This simultaneous stress across sectors is a rarity and has posed immense challenges for the company's performance. The decline in GDP in the first quarter of the year was largely attributed to sectors in which Invicta Holdings operates, signaling a broader economic slowdown in these key areas. Amid the sluggish growth forecast, Goldstone emphasized the importance of right-sizing the organization, which has resulted in a 7% reduction in the workforce over the past year. Additionally, the company has made strategic acquisitions and focused on optimizing cash flow and transaction efficiency to weather the economic storm. To diversify its revenue streams, Invicta Holdings has been gradually expanding outside of South Africa, aiming to reduce its dependence on the local economy. While acknowledging South Africa's vast resources and potential, Goldstone expressed concerns about the lack of policy frameworks to attract investment and retain intellectual capital within the country. Despite President Ramaphosa's optimistic vision for economic growth and job creation, Goldstone noted the absence of specific strategies to address critical challenges such as mining reform, infrastructure development, and Eskom's financial woes. The company's decision to hold off on dividend payments reflects a conservative approach to ensure financial stability amidst uncertain market conditions. However, Goldstone mentioned that dividends are expected to resume by mid-year, provided market conditions improve. By focusing on increasing gross profit margins, reducing overhead costs, and optimizing inventory management, Invicta Holdings aims to enhance cash flow and decrease debt levels. While global economic uncertainties loom, the company remains hopeful about growth opportunities in Southeast Asia and other industrialized regions where demand for their services remains strong. With a keen eye on market trends and a strategic approach to financial management, Invicta Holdings is poised to navigate through the challenging economic landscape with resilience and adaptability.