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"And of course, you put them close to a career where our explosives are involved anyway, so there is a good strategic fit."
AECI announced Wednesday that its revenues increased by 24% to 10.5 billion The overall result increased by 19% to 483 million rand.
This was "a good result," according to Aslam Dalvi, an badociate portfolio manager at Kagiso Asset Management.
While Much Asphalt and Schirm – the two new acquisitions – had contributed, "the core business delivered a reasonable performance given the challenging environment in South Africa" as well as the stronger rand and drought in the Western Cape.
"While the performance of recent acquisitions has been up to here Contrary to expectations, there remains a great opportunity to extract value from these activities and we expect that the performance will continue. significantly improves on this basis, "said Dalvi
. Investments, improved profitability of acquisitions and "margin normalization" would help boost growth.
However, Mr. Dytor said that the global trade war created uncertainty and that many large AECI customers, including in the metallurgical industry, would be affected.
For example, many of the African mines exported by AECI were Chinese-owned and vulnerable to the trade war between China and the United States.
"So we observe with a lot of interest. Certainly, in the long run, I think it's going to have a big effect on some of the bigger customers.
About 40% of AECI profits come from outside SA, with regional and international firms in Africa, Europe and elsewhere While AECI was considering others acquisitions, Dytor said the focus was on debt reduction, with net borrowing of R5.4 billion.
The group has bridge loans of more than 4 billion rand. stated that AECI had gone on the market to "link that" and seek longer term funding.
The group had asked for proposals from banks and other lending institutions in South Africa and other markets. cautiously optimistic "about the business environment" because no one knows what the next six months will bring. "
" Positive changes "in SA's political environment did not occur again translated by accelerated economic growth "and a short term appears unlikel y
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