Johannesburg - Invicta, the listed investment holding company, is considering investing R150 million in facilities in Midrand to participate in the continued strong growth expected from the Gauteng market and its exports of building and related products into southern African territories.
The group grew exports into Africa by 22 percent in the year to March, with the building supplies segment increasing revenue in the reporting period by 12 percent to R1.84 billion from R1.64bn.
The group operates through three divisions. Its other divisions are engineering consumables and capital equipment.
But Invicta chief executive Charles Walters said yesterday that the group’s financial results for the year to March were disappointing.
The group said significant restructuring was undertaken in the year to March and these benefits would manifest in the coming year. Walters said the past year was characterised by a further dramatic weakening in mining and construction activity in Africa and south-east Asia, and the group was further impacted by the deterioration in industrial and manufacturing activity in South Africa and a severe drought.
“These influences, together with the volatility of emerging-market currencies against the major currencies, all contributed to depressed sales volumes across the three business segments,” he said.
Walters added that Invicta’s earnings a share calculation was also impacted by the effect of the rights issue completed in February last year. The rights issue increased the weighted average number of shares in issue by 37 percent to 107 million shares from 78 million shares.
Invicta yesterday reported a 47 percent decline in earnings a share to R3.91 in the year to March from R7.42 in the previous year.
Revenue rose by 2 percent to R10.6bn from R10.5bn. Operating profit dropped by 17 percent to R846m from R1.01bn.
A total dividend a share of R1.42 was declared compared to the R1.96 a share normal dividend and R20.24 a share special dividend declared in the previous year. Cash generated from operations declined by 39 percent to R594m from R979m.
Shares in Invicta dropped 4.54 percent on the JSE yesterday to close at R40.54.