Tough conditions in the steel sector weigh on Andulela

Investment group Andulela said on Thursday a lack of political certainty and infrastructure spending weighed on its results to end-June, with its net asset value per share falling 20.3% to 69.16c.

The company reported a headline loss per share of 10.76c, from 10.88c previously, saying that a continued oversupply of steel products internationally also contributed to lower sales prices, pressure on margins and lower revenues.

Andulela holds an 83.59% interest in Kilken Platinum, a low-cost producer and seller of platinum group metals, as well as a 100% interest in steel manufacturer Pro Roof Steel merchants.

Pro Roof saw a R13.6m inventory impairment during the period, due to price decreases by SA’s main raw material provider.

Kilken returned to profit, seeing a 35% rise in production and a 28% rise in the price of platinum group metals.

Revenue at Kilken rose 161% to R52.7m and it reported an after-tax profit of R7.4m for the period, after a R7.2m loss in the prior comparative period.

gernetzkyk@businesslive.co.za