Rand fluctuations hit ELB margins

But in accounting for a drop of 19,9% in attributable comprehensive income for the period, and a 61,5% plunge in headline earnings, it says there is no consistent correlation between turnover and profit.

Management was not available for comment yesterday.

Project work was at "a satisfactory level" including in SA, Mozambique, Zambia, Angola, Ghana, Sierra Leone and the Democratic Republic of Congo.

Equipment sales in Africa during the period remained at "acceptable levels", but the group said yesterday that gross margins were hit with the sudden depreciation of the rand.

It said significant exchange-rate fluctuations gave rise to unrealised profits or losses.

ELB - formerly Edward L Bateman - said these usually reversed, or were recovered in the eventual sale price of equipment.

The group said yesterday net asset value per share rose by 5%, to R16,27 per share at the end of December from R15,50 per share at the end of June.

ELB said it continued to add suitable technology partners to its portfolio, and its service centre upgrade was complete - with centres in Boksburg, Durban, Cape Town, Kathu, George, Kimberley, Wolmaransstad, Brits and Middelburg.

The group said its Ditch Witch Australia trenching and drilling operation traded at "acceptable levels for the period" across both the Ditch Witch and Komptech ranges of equipment. Ditch Witch imports and distributes underground and utility construction equipment, serving the gas, water, sewage, electricity and communications markets.

It also serves the Australian defence forces, and airport and port authorities. The group distributes in Sydney, Melbourne, Adelaide, Perth and Brisbane.

It said Ditch Witch in New Zealand had commenced trading with good prospects.

The group said cash-flow management remained a priority, and that it would work to retain a strong balance sheet at all times.

It also said it was well positioned to pursue several potential infrastructure projects in Africa.

Source: Business Day