JSE-listed Argent Industrial plans to retrench nearly 400 employees as it embarks on an automation programme amid countrywide strikes weighing on industry.

The company, which posted a loss of R193-million during the year to March 2014, on Friday said the effects of labour strikes at various customers, including those affected by the protracted platinum industry strike, had cost the group R15.9-million during the year.

Argent stressed that a focus on production automation, improving internal efficiencies and growing the market share of its respective brands would be critical to "outperforming within a constricted economy".

The group, which would now reduce its staff from the existing 2 774 to 2 400 employees by the end of 2015, would absorb the cost of the retrenchments in the 2015 financial year, with the benefits emerging from the 2016 financial year onwards.

The restructuring - which resulted in the closure of four operations, along with the disposal of a number of noncore assets during the year - and a sharply weakened rand exchange rate had also impacted the year’s financial performance.

In addition to the R193-million loss for the year, which was down from a profit of R76.3-million during the year to March 2013, Argent report a basic loss as share of 211.4c, compared with the basic earnings a share of 83.2c the year before, and a contraction in headline earnings from 85.9c in 2013 to 14.6c in 2014.

“The restructuring had a negative effect in the net amount of R263-million on the group’s earnings and comprised impairments of R155-million in the underperforming automotive division, necessitated by the effect of continued weak consumer demand, as well as the number of new market entrants,” Argent explained.

The company maintained revenue of R1.8-billion during the year under review.

As part of the restructuring, 12 of Argent’s 22 properties would be sold for R278-million, which would be used to repay R84.2-million of bank bonds, implement share buy-backs, invest in existing and new businesses with growth potential, and increase its exports to Africa in the medium term.

“This positive offset is expected to be realised by the financial year ended March 2015,” the company said.

“The board is confident that the above restructuring and property realisation will unlock value and enable the group to focus on its core businesses of manufacturing and trading.”

Argent declared a final gross dividend of 7c a share for the year ended March 2014.