Drop in Invicta’s earnings ‘reflects SA’s true reality’
Investment holding group Invicta on Monday reported a 7% drop in first-half headline earnings per share (HEPS) to R2.25, which it said reflected the true economic reality in SA, where it generates 80% of its revenue. Invicta has two main entities: Engineering Solutions Group (ESG); and Capital Equipment Group (CEG) ESG felt the effects of the slowdown in the industrial and mining sectors locally, with revenue declining 3% to R2.27bn in the six months to end-September, leaving operating profit down 16% to R202m. CEG, which sells agricultural and construction machinery, recorded a 7% increase in revenue to R2.56bn, but operating profit was flat at R218m. The drought in the Western Cape affected sales of agricultural machinery, while construction machinery sales were subdued. "Trading conditions in the period under review were much more challenging in SA than management had anticipated, largely due to factors beyond the control of the group," the company said in a statement. Group net ...
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