Insimbi warns of profit slump amid Covid-19 and US-China tension
The alloys supplier says commodity prices and market volatility weighed on its profits in its year to end-February
Small-cap metal alloys supplier Insimbi has warned of a profit drop in its year to end-February, when Covid-19 and geopolitical tension weighed on global markets and commodity prices.
The group expects headline earnings per share (Heps) to fall as much as 28% from the prior comparative period’s 13.52c, saying in a trading update it had experienced higher operating expenses and interest costs.
Insimbi supplies alloys to the steel sector, as well as ceramic refractory linings to the cement, paper and pulp, steel and platinum industries.
The group, which has a market capitalisation of R308m, said it had already been experiencing pressure as a result of US-China trade tensions and Brexit uncertainty before the Covid-19 outbreak in China in December.
In morning trade on Thursday, Insimbi’s little-traded share was unchanged at 70c, having fallen about a third so far in 2020.
Correction: July 17 2020
An earlier version of this article incorrectly stated that Insimbi’s Heps may drop as much as 80%, when this figure is 28%
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