Invicta final results 31 March 2012
Revenue increased by 24% to R5.6 billion (2011: R4.5 billion). Operating profit rose by 26% to R634.6 million (2011: R505.5 million), while profit attributable to owners of the company grew to R491.6 million (2011: R354.2 million). Furthermore, headline earnings per share was higher by 39% at 687cps (2011: 496cps).
The board has approved and declared a final dividend of 177cps (gross) in respect of the year ended 31 March 2012.
Trading conditions in the sectors in which the group operates appear to be levelling off. The group is concerned about the lack of investment in mining in South Africa and the apparent gradual de-industrialisation of the country, which, factors, inter alia, are prompting Invicta to look beyond the borders of South Africa for growth in its core businesses.
BMG acquired Operational Marketing (Pty) Ltd and OMSA Valves and Instrumentation (Pty) Ltd (OMSA Group) with effect from 1 April 2012. OMSA adds a leading position in lubrication equipment, systems and field service to BMG. In addition it brings significant potential for BMG to expand in filtration, valves and instrumentation. BMG expects trading conditions for the coming year to be more challenging than the past year.
In the CEG, grain prices (a big driver of demand for agricultural machinery in South Africa) have softened since the end of the financial year. This may lead to a decline in demand for agricultural machinery. Currently demand in the construction equipment market is showing some improvement on last year. However, if government's commitment to infrastructure expenditure becomes a reality, then demand should improve further.