PSV Holdings is still battling to reinforce the industrial engineering group’s empowerment credentials.

In an annual report released on Tuesday, CEO Albie da Silva said PSV was still confident it could secure a successfully funded broad-based black economic empowerment (B-BBEE) equity partner.

He said such a development would contribute favourably to the group’s profitability.

PSV comprises two operating business segments; industrial supplies (steel, piping, tools and consumable supplies) and specialised services (cryogenic and gas systems as well as geosynthetic linings).

In the year to end-February, PSV showed a much improved performance. Although gross profit rose only slightly to R37m, operating profit swung strongly back into the black by R4m. In the previous year PSV recorded a loss of more than R25m. The bottom-line loss was cut to about R1m from a loss of more than R40m the previous year.

Da Silva said the biggest problem that PSV faced in the year ahead was that it had no B-BBEE rating in place. "The new B-BBEE scorecard is extremely harsh and financially onerous. Simply stated, PSV does not currently possess sufficient cash resources required to fulfil the various elements of the new B-BBEE scorecard."

But, said Da Silva, a recently concluded enterprise development transaction with a former employee would partially mitigate the problem.

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