Christo Wiese. Picture: REUTERS
Christo Wiese. Picture: REUTERS

Christo Wiese’s industrial holding company, Invicta, received a boost from new acquisitions during its six months to end-September, though load-shedding and a lack of big projects weighed on the group’s performance.

Revenue at the company’s Engineering Solutions Group (ESG) grew 7% to R2.74bn, of which R216m came from new acquisitions. The company had acquired machine tools company Forge Industrial in September 2018, and parts company Driveshaft Parts in December 2018.

Revenue at Capital Equipment Group, which distributes earthmoving and agricultural machinery, fell 8% to R2.32bn. This was due to a lack of new infrastructure development, the demise of big SA construction companies, and a drought in SA.

Group revenue was flat at R5.3bn, but profit more than tripled to R208m, with the company recovering from a tax provision in the prior comparative period.

In September 2018, Invicta said it had reached a settlement with the SA Revenue Service (Sars) in which it would pay R750m over four years in a taxation dispute.

This resulted in Invicta raising an additional specific taxation expense of R200m in its six months to end-September 2018, causing the settlement amount to be fully provided for. The tax dispute related to a previous empowerment structure put in place by the company.

The company said on Monday it has opted not to pay an interim dividend, citing the higher debt levels that resulted from the 2018 settlement.