OMNIA HOLDINGS LIMITED - Omnia Credit Rating Affirmed With A Positive Outlook By Global Credit Rating Co.Release Date: 14/08/2013 08:55:00 Code(s): OMN
OMNIA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
JSE code: OMN
(?Omnia? or ?the Group?)
OMNIA CREDIT RATING AFFIRMED WITH A POSITIVE OUTLOOK BY GLOBAL
CREDIT RATING CO.
As a result of Omnia?s improved financial profile and its continued solid business
performance, the rating agency Global Credit Rating Co. (?GCR?) has affirmed Omnia?s
long term rating of A- which is defined as ?Investment grade - High credit quality.
Protection factors are good. However, risk factors are more variable and greater in periods
of economic stress?. Omnia?s short term-rating was affirmed at A1- which is defined as
?High grade - High certainty of timely payment. Liquidity factors are strong and supported
by good fundamental protection factors. Risk factors are very small?. The rating outlook
was upgraded from stable to positive.
The rating report also reflects the following views:
? Omnia has benefited from an African expansion strategy, spurred by a strong demand
for mining and agricultural commodities.
? Omnia?s position as a leading domestic producer of mining explosives and fertiliser
mining explosives, as well as industrial chemicals. This position was further enhanced
by the recently completed nitric acid plant, which gives Omnia substantial local
manufacturing capacity and supply stability. As this is at a much lower cost than
imported nitrates, it provides an important competitive advantage.
? The new nitric acid plant supported an increase in operating margin to 9% in FY13
(FY12: 8%), albeit the full benefit has yet to materialise due to an unfavourable
prevailing urea/ammonia price and some plant commissioning issues. The utilisation of
pass though pricing has seen a decline in earnings volatility.
? Robust demand for explosives and fertilisers, and favourable exchange rate
movements has led to strong volume growth. This in turn resulted in a review period
high for revenue in FY13. Combined with the firmer profit margins, operating profit also
rose to a review period high of R1.3bn in FY13.
? Credit protection metrics? improved to review period bests with net gearing and net
debt to EBITDA low at 12% and 19% respectively. Similarly, net interest coverage rose
to 15 times in FY13.
14 August 2013
For more information contact Omnia Group: 011 709 8850
Noel Fitz-Gibbon, Finance Director
Issued by Brunswick: 011 502 7300
Date: 14/08/2013 08:55:00 Supplied by www.sharenet.co.za
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