Rédaction Africa Links 24 with The Finance Ghost
Published on 2024-04-05 08:05:53
Bell Equipment is experiencing significant growth, with the company’s trading statement indicating a substantial increase in headline earnings per share (Heps). Initially projected to be at least 59% higher for the year ending December 2023, the latest trading statement now puts the increase in Heps between 65% and 73%, reflecting strong trading performance.
On the other hand, Barloworld’s story is less optimistic. With a primary focus on the mining industry and selling major earthmoving equipment, the company experienced a decrease in revenue by 5.5% and a 2.5% decline in Ebitda over a five-month period ending in February. The challenging state of the South African infrastructure, coupled with commodity pricing pressures, led to a 4.9% revenue drop in Equipment Southern Africa. However, there was a silver lining with Barloworld Mongolia’s revenue increasing by 24%.
Master Drilling’s numbers for the year ended December 2023 showed a 7.2% increase in revenue in US dollars, resulting in a record high. Despite a modest 2.1% rise in Heps in dollars, the company saw a more significant increase of 15.1% in Heps in rands.
This difference in performance can be seen in the market trends as well. Bell Equipment’s share price has surged by 62% in the past year, while Barloworld’s share price dropped by 30% and Master Drilling’s declined by nearly 16%.
Moving into the local market, CA Sales Holdings presents a success story with a 59% increase in share price over the past year. The company saw revenue grow by 19.4%, operating profit by 40.7%, Heps by 25.3%, and dividends by 27.4% for the year ending December 2023. Through organic growth strategies and strategic acquisitions, CA Sales Holdings aims to maintain its growth trajectory in 2024.
In the retail sector, Spar faces challenges and opportunities amidst its competitors. While Pick n Pay focuses on restructuring and balance sheet improvement, Shoprite is aggressively expanding its market share. Spar strategically aims to capitalize on Pick n Pay’s weaknesses and Shoprite’s broad strategy to enhance its position in the market.
Sirius stands out in the property sector by strategically buying and selling properties at opportune times. The company’s recent deals, such as selling an industrial park in Germany and acquiring a business park in the UK, showcase their ability to recycle capital and drive returns through active property management.
Overall, the market presents a diverse landscape with varying performances and strategies among different companies. By navigating these challenges and leveraging growth opportunities, companies like Bell Equipment, CA Sales Holdings, and Sirius continue to drive success in their respective industries.
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