Electronic and electrical equipment company South Ocean Holdings (SOH) on Tuesday (February 28, 2012) reported an 8.4% decline in headline earnings per share to 30.6 cents for the year ended December 2011 from 33.4 cents a year ago.<\/p>\n
Turnover increased by 10.8% to R1.26 billion, but operating profit declined 14.5% to R75.7 million.<\/p>\n
South Ocean Holdings and its subsidiaries manufacture and distribute electrical cables, import and distribute light fittings, lamps and electrical accessories and has property investments.<\/p>\n
The company said the subdued economic conditions are still affecting the group’s performance and had a negative impact on the results. However, it focused on organic expansion and made capital investments during the year to increase capacity.<\/p>\n
The revenue at the electrical cable subsidiary increased compared to the prior period, but the gross margins decreased mainly as a result of the economic climate and fluctuation in the Rand Copper Price (RCP) which also impacted performance. Radiant’s results were affected by the competitive market conditions compared to the same period in the prior year.<\/p>\n
The cash generated from operations of R39.5 million was lower than the prior period’s R47.6 million, as a result of additional investments in working capital. Inventory levels increased due to higher copper prices and the additional investment in inventory and trade receivables for the new plant at the group’s Alrode facility.<\/p>\n
The group invested R62.3 million in capital expenditure which was mainly financed by long-term borrowings and utilised R53.7 million to repay its long-term interest- bearing borrowings.<\/p>\n
Looking ahead, the group said government and Eskom’s commitment to increase spending on infrastructure will create opportunities within the group. The expansion completed last year to increase production capacity will contribute to an increase in volumes and revenue.
\n“The market recovery is slower than anticipated, but the group is well- positioned to take full advantage of any improvements in the economy. The group remains committed to ensuring earnings enhancement through both organic and acquisitive growth, whilst improving the return on equity on a sustainable basis,” it said.<\/p>\n","protected":false},"excerpt":{"rendered":"
Electronic and electrical equipment company South Ocean Holdings (SOH) on Tuesday reported an 8.4% decline in headline earnings per share to 30.6 cents for the year ended December 2011 from 33.4 cents a year ago.<\/p>\n","protected":false},"author":8,"featured_media":1569,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[25,1723,1722],"class_list":["post-6816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hardware","tag-active","tag-electrical-cables","tag-south-ocean-holdings"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/6816","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=6816"}],"version-history":[{"count":4,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/6816\/revisions"}],"predecessor-version":[{"id":6818,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/6816\/revisions\/6818"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/1569"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=6816"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=6816"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=6816"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}