Engineering services company ELB plans to restructure its Engineering Services business, downsize its head office function and possibly sell its Australian equipment business, ELB Australasia.
This is in response to a depressed trading environment, as well as the losses incurred on the Gamsberg zinc project, in the Northern Cape.
In an announcement on Wednesday, ELB said that, following the completion of the proposed initiatives, the company was expected to be “appropriately structured” for the current market environment.
The restructured entity will comprise an African equipment distribution business offering a range of earthmoving, construction, mining and quarrying equipment from a single supplier, as well as a restructured and refocused engineering business operating within a defined area of expertise.
Depending on the timing of the completion of the proposed initiatives, and the extent necessary, the company may use bridging finance and/or undertake a capital raise in an appropriate form.