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INSIMBI INDUSTRIAL HOLDINGS LIMITED - Trading statement - Six months ended 31 August 2018

Release Date: 21/09/2018 13:00
Code(s): ISB     PDF:  
 
Wrap Text
Trading statement - Six months ended 31 August 2018

Insimbi Industrial Holdings Limited
(Formerly Insimbi Refractory and Alloy Supplies Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2002/029821/06)
Share code: ISB ISIN: ZAE000116828
(“Insimbi” or the “Group”)

TRADING STATEMENT - SIX MONTHS ENDED 31 AUGUST 2018

The 6 month period ended 31 August 2018 was a period of 2 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 R500m 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 Proprietary
Limited will be announced when all remaining suspensive conditions are met. We expect
this to be no later than 30th November 2018 which will improve the Group performance
further in the 2nd half of the financial year. Any forward looking statements in this
announcement have not been reviewed nor reported on by the company’s external
auditors.

21 September 2018
Johannesburg
Sponsor and Corporate Advisor: Bridge Capital Advisors Proprietary Limited

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