Insimbi bounces back

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Insimbi bounces back

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Published Date: 2021-03-30 | Source: Stephen Gunnion | Author: Stephen Gunnion

Insimbi bounces back

The metals recycling company will report improved full-year results despite a weaker first half.

Insimbi Industrial Holdings is likely to report a rise in full-year revenue and earnings after it recovered from a difficult first half.

In a trading update, the metals recycling company said it was likely to achieve revenue for the year to end-February of between R4.9-billion and R5-billion, an increase of 2% to 4%. Earnings before interest, tax, depreciation and amortisation (Ebitda) was expected to be 15% to 25% higher, reaching as much as R164-million, while it would report an improvement of as much as 25% in earnings per share for the period. However, headline earnings per share would be between 5% below and 5% above the 10.13c reported in 2019.

Insimbi reported a sharp fall in first-half earnings after it lost sales and incurred additional expenses and restructuring costs due to Covid-19. Its operations were severely impacted by last year's hard lockdown as its activities weren't classified as essential services and were effectively closed from 27 March before reopening in a phased approach from 4 May. It estimated that the lockdown cost it R800 million to R900 million in first-half revenue. All Covid-19 related expenses, including restructuring and retrenchment costs amounting to R1.8 million, were expensed in the first half of its financial year.

The company's results are scheduled for release on 28 May. Its shares closed unchanged at 90c yesterday.





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