Barloworld’s diverse operations and wide geographic footprint have kept the group buoyant in difficult trading conditions. Revenue of R66.5bn in the year to September was helped by R2.7bn in gains from a weaker rand. Cash generated from operations soared to R7.8bn from R1.1bn previously, boosted by improved working capital management and by trimming the group’s asset base, mainly in its southern African and Russian mining equipment divisions. A fourth consecutive year of falling mining capital expenditure hurt the group’s core equipment division in southern Africa. However, the positive cash generation, solid equipment sales and maintenance income in Russian operations, and a sparkling performance by the automotive and logistics division saw operating profit increase R140m, or 4%, to R4.1bn. The market seemed to like what it saw, lifting the share price 6.71% on the day. "All our businesses have a clear strategic focus and strong market positions," departing CEO Clive Thomson said.<...
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