Afrox managed to increase revenue and earnings before interest, tax, depreciation and amortisation in its interim results last week. Hats off to the management, considering the woeful state of SA’s economy — especially the country’s mining and metals industries.But despite ramping up its presence in markets for food and beverages as well as medical gases, the German-backed company has had to cut about 30% of employees over the past three years. This came amid revised spending of R1.5bn and changes in top management since 2012, while also halting gases production in Angola. The group did build an air-separation unit in the Coega industrial zone near Port Elizabeth that provides industrial gases. But the recent sale of DCD Wind Towers in the zone for a nominal R1 to the Industrial Development Corporation due to Eskom’s intransigence over paying renewable energy providers must have seriously dented sales. With the manufacturing sector in the doldrums and continuing headwinds in the eco...
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