INTERIM PROFIT FALLS 35%
Torre suffers through torrid half
Charles Pettit says the Industrial conglomerate is a strategically important asset in the Stellar portfolio
Industrial conglomerate Torre took strain in the six months to end December 2016 and looks set to face more tricky trading conditions in the second half. Torre CEO Johan Botes said the focus would be on organic growth and increasing market share, while continuing to reduce costs. The company recently exited its African operations, selling its 55% shareholding in Kanu Equipment for $27.2m. The interim numbers showed revenue from continuing operations dropped 7% to R802m with analytical services showing a marked fall in sales. But interim revenue did grow 7% on the second half of the year to end December 2015. Normalised profit before interest and tax from continued operations slid 35% to R65m. Botes said there was some evidence of positive outlooks from Torre’s customer base. But he conceded that sustainability of the commodity recovery remained uncertain. He said cost-cutting initiatives had been implemented and should start bearing fruit over the next 12 to 24 months. A strategic r...
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