ELB’s turnaround gathers steam
Relief from a stronger rand, improved commodity prices and the start of delayed contracts made for a much better year for the engineering services and equipment firm
Engineering services and equipment firm ELB Group’s turnaround persisted in the second half, and the company posted a full-year profit after a loss the previous year. The group, which earlier this year reported a return to profit in the first half to end-December, said on Wednesday that it made an after-tax profit of R82m in the year to end-June, from a full-year after-tax loss of R189m a year ago. Headline earnings per share (HEPS) of 243c compare with a headline loss per share of 519c. It declared a final dividend of 50c per share, for total dividend for the year of 82c. In the prior year ELB paid only an interim dividend of 30c. Where the 2016 year was characterised by pressure on margins, foreign exchange losses, the costs of restructuring and repositioning the business, and delayed contracts, the 2017 year saw the start of those contracts, relief from a stronger rand, and improved commodity prices. In the equipment division, sales rose to R875m from R686m, thanks to "improving ...
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