Insimbi interim results 31 August 2011
Revenue for the interim period ended 31 August 2011 increased to R453.6 million (2010: R412 million). Gross profit decreased to R48 million (2010: R51.1 million), operating profit fell to R17.5 million (2010: R21.8 million), while total comprehensive income attributable to equity holders of the parent was slightly lower at R10.7 million (2010: R12 million). Furthermore, headline earnings per share grew to 4.16cps (2010: 3.46cps).
Insimbi declared an interim dividend for the six months ended 31 August 2011 of 2cps.
Despite the current uncertainty in Europe and the USA, Insimbi has experienced definite signs of what they believe to be, sustainable improvements in their traditional target markets, most of which are considered to be "emerging". It is unclear at this stage what effects the unfolding events in Europe and USA will have on the local, regional and other emerging market economies but the group remains confident that Insimbi is well prepared to deal with them. The group has a diverse range of product offerings that have proven to be resilient throughout the global crisis. The fact that Insimbi has remained profitable throughout this crisis period, is proof of this. The group are also optimistic and confident that the consistent and improved revenues experienced during the first six months of the financial year, are sustainable. Insimbi's experience during the comparative period last year, was of massive volatility with monthly revenues varying greatly from one month to the next. This consistency combined with the recent weakening of the rand against major currencies, is positive for Insimbi. The company continues to prudently evaluate strategic acquisitions and remain focused on expanding their "basket" of products to strengthen their position as a market leader in the ferro-alloy and refractory market.