TWK Investments reports 42% profit surge after tax to R89.53m
DURBAN - TWK INVESTMENTS, a diversified agriculture and forestry company, yesterday reported a 41.8 percent surge in profits after tax to R89.53 million in the six months to end February and expects a good second-half ahead.
The group, which operates in a number of divisions that include timber, retail and mechanisation, financial services, grain and vehicles and tyres, is listed on the ZARX exchange.
Chief executive André Myburgh said the diversity of the firm’s income streams provided resilience amid the Covid-19 pandemic.
“Noteworthy contributors to the improved results came from the Sawmills, BedRock mining timber, Sunshine Seedlings, general trade and the fertiliser divisions, translating into a 41.8 percent increase in profit after tax.
With the careful management of working capital and cost-saving initiatives, TWK has been able to focus on its vision of achieving sustainable growth together with the aim of creating value for all stakeholders by creating a more resilient business with more sustainable quality of earnings,” Myburgh said.
Its revenue increased marginally by 0.2 percent to R3.84 billion, boosted by an increase in general trade sales volumes margin improvement.
Basic earnings per share (Eps) increased by 44.4 percent to 242.67 cents a share while the net asset value per share increased by 12.7 percent to R46.52 a share. Looking ahead to the remainder of the financial year, TWK said it had seen pulp prices increased significantly by 50 percent to 60 percent in the last four months, the fastest cycle recovery on record.
However, European pulp inventories were the lowest since 2018 and now back to normal.