Despite a challenging local and global economic environment, metals supplier Insimbi on Tuesday 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.
Despite the period’s challenges being exacerbated by the impact of the floods and labour unrest that affected State-owned Transnet’s operations in Durban earlier in the financial year, Insimbi achieved decent growth for the period on the back of the Group Wreck acquisition in November 2018.
Commodity and metals prices were subdued during the first six months of the financial year, and it is estimated that the company’s average basket price of products is between 12% and 15% down on international pricing, compared with the same period in 2018.
Although this has been partially offset by a weaker currency during the period under review, the Rand price of said basket is about 5% lower across the board, the company noted.
Insimbi has declared an interim dividend of 2c a share for the period.