Insimbi - trading statement
The six month period ended 31 August 2018 was a period of two financial quarters, the first quarter 1st March 2018 to 31st May 2018, was an extremely difficult one during which Insimbi was not only operating in a recessionary environment but also lost an effective 20 working days as a result of public holidays and general labour unrest. Margins were also under pressure due to the strength of the currency from December 2017 through to May 2018.
However, the 2nd financial quarter from 1st June 2018 to 31 August 2018, proved to be an exceptional one, with impressive revenue growth and improved margins as a result of the weakening of the currency.
Group revenue has increased by over 20% compared to the corresponding period and this trend looks set to continue into the second half of the year. August was a particularly good month for the Group with revenue of approximately R500 million and an improvement in margins.
Notwithstanding the exceptional performance in the 2nd quarter, shareholders are advised that Insimbi expects the following results for the period ended 31st August 2018:
* Headline earnings per share (˘HEPS÷) between 8.40 cents (-29.1%) and 9.00 cents (-24.7%) for the six months ended August 2018 when compared to the reported HEPS of 11.95 cents for the six months ended August 2017 (˘corresponding period÷).
* Earnings per share (˘EPS÷) for the six months ended August 2018 between 9.12 cents (-3.8%) and 9.70 cents (-18.9%) when compared to the reported EPS of 11.97 cents for the corresponding period.
The closure of the acquisition of Group Wreck International Non-Ferrous (Pty) Ltd. will be announced when all remaining suspensive conditions are met. Insimbi expects this to be no later than 30th November 2018 which will improve the Group performance further in the 2nd half of the financial year.