INSIMBI INDUSTRIAL HOLDINGS LIMITED - Summary of the Unreviewed Consolidated Condensed Financial Results for the six months ended 31 August 2020

Summary of the Unreviewed Consolidated Condensed Financial Results for the six months ended 31 August 2020

INSIMBI INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No: 2002/029821/06)
Share code: ISB   ISIN code: ZAE000116828
("Insimbi" or "the group" or "the company") 


SUMMARY OF THE UNREVIEWED CONSOLIDATED CONDENSED FINANCIAL RESULTS 
FOR THE SIX MONTHS ENDED 31 AUGUST 2020


PROFILE
Insimbi is a group of companies that sustainably source, process, beneficiate and recycle 
metals. The core business expertise is the ability to source and provide local, regional 
and global industrial consumers with the required commodity over its four distinct 
business segments.


FINANCIAL PERFORMANCE
                                                    2020            2019         Change
Revenue (R'000)                                2 121 263       2 417 034          (12%)
Net Profit (R'000)                                 4 197          35 868          (88%)
Operating profit (R'000)                          33 845          67 265          (50%)
Cash generated from operations (R'000)            82 837          97 884          (15%)
Earnings per share (cents)                          1.02            9.48          (89%)
Headline earnings per share (cents)                 1.03            9.42          (89%)
EBITDA (R'000)                                    56 258          84 496          (33%)
Net asset value per share (cents)                 108.17          109.81           (1%)
Dividends per share (cents)                         0.00            2.00            0%


OVERVIEW
The first 6 months of the current financial year were extremely challenging due to the 
impact of the Covid-19 pandemic and the related lockdown policy implemented by the South
African government. This compounded the recessionary economic environment that was already
firmly entrenched in our economy and so it is no surprise, that our group's performance in
the first half of the year has been negatively impacted as a consequence of the unique 
situation that we find ourselves in. The 5 week "hard" lockdown from 27th March 2020 to
4th May 2020, was especially damaging as our operations were classed as non-essential and
resulted in almost zero revenue generated during this period and with the closure pre- and
the re-opening post- this lockdown, it is fair to say we lost almost 7 weeks' worth of 
revenue and gross profit whilst still incurring a significant portion of operating costs
during that period. 

To mitigate some of the impact due to the lost revenue and gross profit, we turned our 
focus to stringent cost-cutting measures across the group. We also used the time to 
formulate new strategies for some under-performing operations and I am pleased to say 
that we have been extremely successful in both these areas. 

Commodity prices and in particular metals, have rebounded and combined with the weaker 
currency, this has also improved or "buffered" the situation, proof of the underlying 
Rand-hedge nature of our group.

It is very pleasing to note therefore, that despite the significant decline in our earnings
and headline earnings when compared with the previous interim period, that the second 
financial quarter from 1st June 2020 to 31st August 2020 after the lifting of Level 5 and 
4 lockdown, generated earnings and headline earnings of almost 8 cents per share and 
EBITDA of over R50 million, our most successful financial quarter in our 50 year history, 
this despite operating at only about 80% of our capacity during this period. 
 

DIVIDEND
Given the uncertainty that prevails in the current local and global markets as a result 
of the Covid-19 pandemic, the board has elected not to declare an interim dividend.

This short form announcement is the responsibility of the directors and is only a summary 
of the information contained in the full announcement and does not contain full or complete 
details. The full announcement published on SENS is available at: 
https://senspdf.jse.co.za/documents/2020/JSE/ISSE/ISBE/FY2020H1.pdf.

Copies of the full announcement is available on the group's website at 
www.insimbi-group.co.za, or may be requested at the group's registered office (359 Crocker 
Road, Wadeville, Germiston) or at the Sponsor's office, at no charge, during office hours. 
Any investment decisions in relation to the company's shares should be based on the full 
announcement.

The information in this announcement has not been audited. 

Directors:               F Botha (Chief Executive Officer)
                         N Winde (Chief Financial Officer)
                         C Coombs
                         RI Dickerson* (Chairperson)
                         IP Mogotlane*
                         N Mwale*
                         CS Ntshingila*
                         (*non-executive)
Company Secretary:       M Madhlophe
Registered office:       Stand 359 Crocker Road, Wadeville, Germiston, 1422
Website:                 www.insimbi-iras.co.za
Sponsor:                 PSG Capital
Transfer Secretaries:    Computershare Investor Services Proprietary Limited
Auditors:                PricewaterhouseCoopers Inc.

15 October 2020

Date: 15-10-2020 02:25:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.