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DURBAN - The Insimbi Group, an industrial consumables company have released their year-end results.

The company's revenue grew by 160% from R1,3 billion to R3,5 billion. Although they had lower margins from the recycling business the gross profits rose to R345,4 million from R185,8 million.

The margins were affected in the fourth quarter by a sudden decrease in the prices of the affected commodities mixed with a strengthening of the South Africa rand against other major currencies.

The lower margins affected the profitability of the year's second half. The operating profit increased by 135% from R54,4 million to R127,8 million which mirrors the effect of lower margins in the metal recycling business relative to the revenue increase.

Besides the growth in revenue and operating profit operating expenses grew by 63,5% due to the lower cost base of the recycling operation.

The money made from operations of R166,4 million (2017: R88,9 million) allowed financial liabilities of R69,8 million to be repaid. Isimbi also generated total cash at the end of the year of R24,5 (2017: R8,7 million utilised).

The proportion of debt to equity also improved to 51% from 91% in the previous year. The board agreed to announce a final dividend of 3cps with an interim dividend declared of 3cps.

The alloy company has constantly declared dividends to its shareholders. The Group CEO Fred Botha said, "this is an exceptional achievement in the current economic climate and allows Insimbi the flexibility and ability to source, review and execute on opportunities".

Botha added that opportunities are being given to the company rather than them having to source those opportunities.

The company has developed its core knowledge through their capacity to source and provide the industrial consumer globally with the commodity that they need.

The business has developed over the years and Isimbi operates within four distinct segments.

The four segments are:

1. Ferrous alloys
2. Non-ferrous alloys
3. Refractory materials
4. Plastics

According to Insimbi, the four segments complement each other and give the business model of the company a built-in diversification which has proven to be strong and sustainable through different commodity and trading cycles that the company has experienced over their operational life.

The company has also made some changes to the board including the chairman. Last year December Brian Craig stepped down from the board and Robert Dickerson took over his position as chairman.

Insimbi also had new Chief Financial Officer join them last year October.

Insimbi has also established two Employee Share Option Schemes that has created R18 million in value. The beneficiaries are mostly black team members and according to them the downstream benefits are real.