South Ocean Holdings, which produces electrical cabling and has property interests, says it was able to leverage off Covid-19 related cable shortages in its year to end-December, when it returned to profit.
Sales were higher than expected, rising 12% to R1.74bn in the group’s year to end-December, amid a profit swing to R27m, from a loss of R17.5m.
The company, valued at R140m on the JSE, mainly sells its products wholesalers and distributors who primarily supply the building and construction industry. South Ocean had initially been hit by Covid-19, as it was unable to operate as an essential service.
The effect of the government’s lockdown restrictions on the group’s operations has been challenging, South Ocean said, adding that the full effects of the crisis remaining uncertain.
Trading conditions have improved as the economy progressively reopened in line with the government’s risk-adjusted strategy, however, and operations ramped up in the second-half of May.
The group declared a 3c final dividend — a payment of R6.1m — having not paid one in 2019.
Electrical cables generate about 99% of the group’s revenue, and its property investment — Anchor Park — derives its revenue mainly from group companies, as it leases its properties to fellow subsidiaries.
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