Industrial giant, Invicta Holdings Limited, has announced positive audited Group results for the year ended 31 March 2010.

“In spite of the depressed market, which was characterised by weak demand for product, a global liquidity crisis, a strong Rand and tough trading conditions, Invicta has recorded pleasing results,” says Arnold Goldstone, CEO, Invicta Holdings Limited. “Good margin management and tight cost controls have resulted in a modest decline in operating income of 8,9 % to R453-million. Improved financing costs and dividends received, meant an 0,7 % increase in profits to R365-million. Earnings per share increased by 3,7 % to 453 cents per share - a very pleasing result in a challenging market.”

“The Group placed particular emphasis on working capital management, resulting in cash generated from operations of R590-million being achieved – the highest ever for Invicta.”

Strategic acquisitions have been positive for Invicta Holdings. These include the acquisition of 100% of Criterion Equipment (Pty) Limited effective 1 June 2009 and 70% of Wegezi Power Holdings (Pty) Limited effective 1 April 2010.

Criterion Equipment operates in the materials handling sector, with TCM forklifts being its primary product. Wegezi Power Holdings manufactures and repairs transformers, electric switch gears, panels and pumps.

In spite of challenging trading conditions in the industrial consumable sector, BMG – Bearing Man Group - continues to be the core profit base of the Group. BMG achieved turnover for the year of R2 018 million, with an operating margin of 14,5 %. BMG’s latest acquisition was the purchase of a 70% stake in Turnkey Hydraulics (KZN) (Pty) Limited, which now operates as BMG Hydraulics KZN.

BMG continued to invest in its technical expertise and added further repair and technical services to an extensive product offering. BMG also launched its ‘World-Class Production Efficiency’ programme to assist customers in improving energy efficiency and plant availability.

Invicta’s capital equipment division (CED) showed a 22,4 % decline in revenue to
R1 750-million. Exceptional margin management and cost control resulted in segment profit declining by only 12,8 % to R123 million.

The Group continued to strengthen its distribution base and improved structures in all of its smaller operations, as well as completing some strategic property transactions during the year.

Currently, with more stable trading conditions and better economic expectations, the Board has declared a final dividend of 102 cents per share resulting in total dividends for the year of 151 cents per share, up 9,4 % on last year.

Invicta, with its huge financial resources, is committed to continue to pursue opportunities to further extend its product range, enhance it service and to penetrate new market sectors, thereby broadening the Group’s customer base.