- Trading profit down 14.2% to R258 million, revenues down 5.5%
- ROFE: 12.5%
- Overall gross margin up by 1.8%
- Focus on cost control and efficiencies being enhanced
- Skills base being maintained
- Well positioned for any market improvement and adjustment
- The division continued to refine its supply chain operations, benefiting cost containment and enhancing distribution efficiencies
In a market which has seen the near
decimation of the construction industry,
declining activity in the mining industry,
a slowdown in light commercial and
residential buildings, together with
extremely low levels of infrastructure
spend, this division did well to deliver
a profit. This result was after having
maintained market share in some areas
and grown its share in certain sectors,
while remaining as competitive as possible.
Management continued to be intensely
focused on improving cost control.
There has also been good progress on
maintaining the skills base, which is critical
given its wide variety of solutions and
activities that it has to offer the market.
The Atlas Group had a reasonable year in
terms of sales despite low demand and
Voltex experienced a difficult year,
revenue was largely flat but operating
income improved. Voltex is a well-structured
unit and the spread of its
customer base remains strong.
Voltex has commenced with the
introduction of an improved customer
interface, tracking and integration system.
Waco’s performance was disappointing
following a number of significant
challenges that included a large and
complex move to new premises, which
is now complete. The Voltex Professional
Lighting offering has been enhanced as
management remains intent on delivering
into this sector of the industry and
increasing penetration into this market.
The Cabstrut business continues
from strength-to-strength and
delivered good growth following some
internal consolidation and logistical
advancements. The unit has acquired the
Bosal Electrical Accessory business.
The performance of MV LV was poor
as significant projects undertaken in
the previous year were not repeated.
However, the MV LV confirmed order
book is extremely strong which positions
the unit well for next year.
The Electech business had a good
performance in a difficult environment
with sales and profits increasing
significantly. This performance can
largely be attributed to the renewable
energy sector of the market, and
Electech is continuing to evolve into an
energy and renewable solutions-type
business with numerous offerings and
While revenue was down, the bottom
line improved at Technilamp, mainly
as a result of improved margins. Eagle
Lighting had a pleasing performance.
The Mubelo operation in Mauritius
delivered a better result and
management continues to focus on
growing this business.
Trading conditions are not showing
signs of improvement, but management
remains focused on its competitive
advantage as well as ensuring strict
efficiency and cost control. The division’s
market leadership, together with its
sought-after products and offerings,
ranging from its branch network to the
numerous specialised units, means that
it is well positioned to take full advantage
of any improved infrastructure spend that