Wrap Text
Unreviewed condensed consolidated results for the six months ended 31 August 2024
INSIMBI INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No: 2002/029821/06)
Share code: ISB
ISIN code: ZAE000116828
("Insimbi" or "the Group" or "the Company")
UNREVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2024
PROFILE
Insimbi is a Group of companies that sustainably source, process, beneficiate and recycle metals. The core business
expertise is the ability to source and provide local, regional, and global industrial consumers with the required commodity
over its four distinct business segments. The Group herewith announces its unreviewed condensed consolidated
financial results for the six months ended 31 August 2024.
FINANCIAL INDICATORS
2024 2023 % Change
Revenue (R'000) 2 706 581 3 028 875 (11)
Net profit (R'000) (9 434) 56 732 (117)
Operating profit (R'000) 15 223 103 163 (85)
Cash generated from operations (R'000) 36 607 4 662 685
Earnings per share (cents) (2.61) 15.38 (117)
Headline earnings per share (cents) (1.22) 15.46 (108)
Dividend per share (cents) - 2.5 (100)
OVERVIEW
Operating conditions in the first half of Insimbi's financial year to 28 February 2025 were again challenging, partly due to
volatile prices for our key commodities (copper, aluminium, nickel and steel). These commodities follow the platinum group
metals (PGM) cycle, which is working through a significant downturn. On the positive side, the resumption of scrap metal
exports (after the ban fell away in March 2024) mitigated the impact of commodity prices to some extent.
Globally, economies are strengthening as major central banks begin to lower interest rates. However, the pace of these
upturns is mixed and highly dependent on external factors, such as geopolitical tensions. New fiscal stimulus packages in
China have yet to make an impact on that crucial economy. In South Africa, the Reserve Bank lowered interest rates (by
0.25%) for the first time in four years as inflation receded into the bank's target range. While the advent of a rate-cutting
cycle is welcome news, weak growth in the national economy still reflects the severity of systemic issues at key parastatals
for logistics and power, respectively Transnet and Eskom. The absence of loadshedding in the second quarter did much
to improve confidence, both consumer and corporate, as did early signs of an effective government of national unity post
the May elections.
Against this background, Insimbi produced satisfactory results for the six months to August 2024, reinforcing the benefit
of our diversified portfolio. In addition, we reduced fixed costs by streamlining our workforce while retaining the skills
needed to operate our businesses sustainably and disposing of certain small loss-making operations. In combination,
timely management action and the steady performance of our operations enabled the group to:
• Generate revenue of R2.7 billion (-11% vs interim period in 2023) with operating profit of 0.6%
• Maintain excellent control of operating expenditure. The significant cost reductions over recent years are
sustainable as we operate a leaner and more resilient business
• Reduce our debt-to-equity ratio from 99% in FY21 to 76% in FY24 and maintain this level despite the high-interest
rate environment.
Overall, our target industries and markets continue to develop, our core operations have performed well and demand for
our products remains strong, both locally and for export.
SHORT FORM ANNOUNCEMENT
This short form announcement is the responsibility of the Board and is only a summary of the information contained in
the full announcement ("Full Announcement") and does not contain full or complete details. The Full Announcement
published on SENS is available at https://senspdf.jse.co.za/documents/2024/jse/isse/ISBE/HY2025.pdf.
Any investment decisions in relation to the Company's shares should be based on the Full Announcement. Copies of
the Full Announcement are available on the Group's website at www.insimbi-group.co.za
The information in this announcement has not been audited or reviewed by the Group's auditors.
Directors: F Botha (Chief Executive Officer)
N Winde (Chief Financial Officer)
RI Dickerson* (Chairperson)
N Mwale*
CS Ntshingila*
(*non-executive)
Company Secretary: FluidRock Co Sec (Pty) Ltd
Registration number: 2016/093836/07
Unit 5 First Floor
Right Berkley Office Park
8 Bauhinia Street Highveld Technopark
Centurion, 0169
Registered office: Stand 359 Crocker Road, Wadeville, Germiston, 1422
Website: www.insimbi-group.co.za
Sponsor: PSG Capital Proprietary Limited
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Auditors: Moore Cape Town Inc.
Johannesburg
17 October 2024
Sponsor
PSG Capital
Date: 17-10-2024 04:30:00
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