Latest news with #R4.8bn
IOL News
26-05-2025
- Business
- IOL News
Barloworld's interim earnings drop amid onging Zahid Group takeover attempt
A 550 kVA Cat C15 diesel generator set being assembled at Barloworld Power's Boksburg facility. The group is experiencing tough trading conditions in line with macro-economic volatility in the markets where it operates, especially in its Russia business, where sales has decline due to the impact of sanction. Image: Supplied Barloworld, still the subject of a controversial takeover bid by Saudi Arabia-based Zahid Group and CEO Dominic Sewela, nearly halved its interim dividend to 120 cent a share (210 cents per share). This followed a 20.5% decline in headline earnings per share (HEPS) to 423.2 cents for the six months to March 31, with the results impacted by a weak performance in the Russia business due to the impact of sanctions in that country. Many JSE listed companies exited their businesses in Russia after the onset of the war in Ukraine, but Barloworld opted to retain Vostochnaya Technica (VT). Excluding VT, normalised HEPS was flat at 356 cents per share. Sewela said trading conditions were broadly aligned with their expectations of stable to modest economic growth, guarded optimism, moderated by cyclicality and subdued commodity markets. "Barloworld has shown remarkable resilience, especially excluding the VT results. The positive impact of the restructuring of Ingrain in 2024 is especially evident. We continue to navigate the evolving environment by pulling the levers within our control,' said Sewela in a statement. Regarding the Zahid takeover bid that was initially rejected by shareholders, an announcement about the requisite 90% acceptances from shareholders to be received in terms of a standby offer, or whether the bidding company wishes to waive the threshold, was expected to be made by June 30, 2025. Group revenue fell by 5.8% to R18.1 billion, weighed down by a significant reduction in VT revenue. 'The board remains vigilant in overseeing the investment in VT and will conclude and communicate an official strategy in due course,' the board said in the results.. Earnings before interest, tax, depreciation and amortisation (EBIDA) fell by 9.1% to R2.2bn. Excluding VT revenue EBITDA increased by 3%. The EBITDA margin fell to 12.4% from 12.9%. Excluding VT, EBITDA margin expanded from 11.9% to 12.5%. The group invested in working capital to support growth objectives and used free cash flow to reduce floor plans, which were more expensive than its available facilities. As a result, net debt increased by R1.6bn to R4.8bn. Net asset value per share increased to 9 235 cents from 9 111 cents. Solvency and liquidity remained strong. On the outlook, Sewela said that since the end of the first quarter, financial markets and commodities were very volatile, rapidly reacting to developments regarding US tariffs and associated uncertainties. 'In such an unpredictable environment, effective risk management and scenario planning are crucial, especially for complex supply chains as well as the fragile geopolitical state of affairs.' The board said several major South African mining corporations reported that, despite prevailing market turbulence, primary commodity trade routes were largely unaffected due to the exclusion of platinum group metals, coal, gold, manganese and chrome from tariff implications. 'We continue to assess the potential impact of tariffs on our iron ore, steel, and diamond customers.' Some reorientation and dislocation of physical trade flows was anticipated in the near future, which could present both opportunities and challenges for Barlworld's customers. 'The potential consequences of slower economic growth and a fragmented trading environment may be more significant. The future effects of tariffs on our business remains uncertain, and we are mapping out the medium- to long-term ramifications for our business,' the board said. The US Department of Commerce's Bureau of Industry and Security (BIS) had extended a deadline to September 2 for Barloworld to complete an investigation on potential export violations. VT's EBITDA fell 68.1% to R133 million. Operating profit of R104m decreased by 73.1% compared to the prior period. VT was expected to trade at breakeven levels as the structure was optimised for lower activity levels. VT was self-sufficient in terms of its funding requirements. EBITDA for Equipment Southern Africa fell 1.9% to R1.3bn. Operating profit declined 15.1% - the margin reduction resulted mainly from changes in the sales mix, from lower aftermarket activity.
Zawya
25-03-2025
- Business
- Zawya
Digital nomads drive record property sales in Cape Town
'The rise of digital nomads is not just reshaping how we work, it's creating a powerful economic opportunity for South Africa, particularly in the property sector,' comments Dean Lederle, co-founder at Launchbase, a prop-tech company based in Cape Town. The successful conclusion of the inaugural Nomad Week, hosted by the City of Cape Town, underscored the city's strategic move to position itself as a global hub for remote workers. While concerns have been raised about the impact of this trend on local affordability, data-driven insights reveal a compelling case for the economic benefits digital nomads bring to Cape Town's property market, tourism sector, and job creation. One of the standout success stories in this space is Launchbase, a Cape Town-based proptech firm that has leveraged digital transformation to drive record-breaking property sales. 'Our proprietary 'Blueprint' software and psychology-driven marketing strategies have not only transformed the off-plan property buying experience but have also aligned perfectly with the surge in demand from digital nomads,' says Lederle. In 2024 alone, the Launchbase Blueprint platform facilitated transactions exceeding R4.8bn, with a record-breaking R310m in single-day sales and a high-value property transaction reaching R23.8m. These results highlight how the digital nomad trend is fueling demand for high-end rental properties, and in turn, accelerating development timelines and creating employment opportunities across the construction and service sectors. 'This trend is not about displacing local buyers as locals still make up 80% of sales. It's about attracting investment into a distinct segment of the market, which enables developers to reinvest in new projects to keep up with demand,' Lederle adds. 'The accelerated pace of property development spurred by this demand translates into real economic benefits, from job creation in construction to increased revenue for local businesses that cater to remote workers.' As Finance Minister Enoch Godongwana emphasised in the 2025 Budget Speech, South Africa must prioritise economic growth to fund national priorities without overburdening taxpayers. 'Embracing global trends like the digital nomad movement allows us to innovate locally, drive revenue growth, and create sustainable employment,' Lederle notes. Cape Town's proactive stance on digital nomads could set a precedent for South Africa's broader economic strategy. By harnessing international trends and fostering an environment that attracts high-value global talent, the country can unlock new pathways for economic expansion, technological innovation, and job creation—without raising taxes or accumulating unsustainable debt. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
