Argent Industrial lifted its dividend by 126% to 95 cents in the year to March 31, from 42c a year before following a strong financial performance that was boosted by the offshore operations.
“Domestically the consequences of the perfect Fun Show put on by the current elected party has made an absolute mess of the SA markets and is the inspiration to place one’s operations and production elsewhere in the world,” its directors noted in the results.
On prospects, they said: “The strategy is to increase our offshore exposure, which will be achieved by acquisitions, expanding current operations and via exports.”
Argent Industrial holds both local and international manufacturing and commodity trading interests, with businesses in South Africa, UK and the US, and exports products to more than 35 countries.
Revenue increased 1.1% to R2.46 billion. Operating profit rose 15.2% to R304.36 million. Earnings before interest tax depreciation and amortisation (Ebitda) increased 12.8% to R360m. Profit for the year was up 23% to R236.27m.
Diluted headline earnings per share increased 22.5% to 409.5c.
“The group exceeded its objectives for the 2023 financial year by investing in stable, developed international markets, by growing export markets, through efficient sourcing of commodities globally, recognising and rewarding entrepreneurial management in its operations, and through the repurchase of its own shares,” the directors said.
“The planned operational investments for Fluid Transfer, Flofuel and Partington in the UK are complete. The expansion of Fuel Proof started on 5 June 2023 and should be complete by January 2024. We continue to examine high return on equity investment opportunities mostly in the UK, while being disciplined on valuation,” the directors said.
The South African subsidiaries include the trading companies Phoenix Steel and Gammid, which have trading and processing operations in the stainless, aluminium and mild steel markets.
Argent’s retail manufacturing companies are Xpanda, American Shutters, Jetmaster and Castor and Ladder, which are strong brands locally and internationally.
Its industrial manufacturing companies are Hendor Mining, a manufacturer of underground mining scrapers, Koch’s Cut and Supply, a specialist engineered steel jobbing shop, Pro Crane Services, manufacturers of industrial lifting equipment and Megamix, a concrete mixing and distribution company in the Western Cape.
“The overseas operations have had an incredibly good year,” and were expected to run at similar levels given their order book. Fuel Proof was expanding its production facility by a third to cater for the demand for larger vessels, fuel farms and transportable hydrogen storage units, as well as its fuel storage products having just launched in America.
The expansion of Xpanda into the UK was ongoing, with product additions planned in the form of Xpanda’s version of the American Shutter product in February 2024. Xpanda had also increased exports into Australia, New Zealand and Canada as well as its exposure in Africa and the Indian Ocean Islands.
BUSINESS REPORT