A solid, well-run agricultural titan
ANTHONY CLARK: Senwes — the ‘plougherful’ force from Klerksdorp
Senwes is well-placed to recover from the drought as farm incomes begin to improve
A giant in the domestic agricultural space, Senwes, might be the largest company in the sector that you’ve never heard much of. It is in Klerksdorp, North West and has had an annual revenue of R9.2bn with profit before tax of R200m — in 2016, when SA experienced its worst drought in decades. Recent interim results to October 2016 show some early signs of recovery, with revenue ahead by 25% to R5.7bn and profit before tax of R132m. Despite the drought, Senwes recorded only a 6% drop in interim earnings to 54c/share for the six months because of the resilience of the business and the strength of its balance sheet. Why am I writing about this company? The answer is that after years of hiding its light under a Klerksdorp bushel and being traded on the over-the-counter exchange, Senwes recently became the first to list on the newly licensed stock exchange platform ZAR-X. The listing allows greater stock tradability and faster settlement. Listing costs are also much lower than on the JSE....
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