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CANCELLATION OF S490164 Audited Financial Results for the year ended 29 February 2024, Integrated Annual Report and Notice of AGM
INSIMBI INDUSTRIAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration No: 2002/029821/06)
Share code: ISB
ISIN code: ZAE000116828
("Insimbi" or "the Group" or "the Company")
AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2024, DISTRIBUTION OF THE
INTEGRATED ANNUAL REPORT AND NOTICE OF AGM
PROFILE
Insimbi is a group of companies that sustainably source, process, beneficiate and recycle metals. The core business
expertise is the ability to source and provide local, regional, and global industrial consumers with the required commodity
over its four distinct business segments. The Group herewith announces audited financial results for the twelve months
ended 29 February 2024.
FINANCIAL INDICATORS
2024 2023 % Change
Revenue (R'000) 5 590 294 5 731 423 (2)
Net Profit (R'000) 42 876 107 343 (60)
Operating profit (R'000) 123 259 199 791 (38)
Net cash from operating activities (R'000) 101 700 130 809 (22)
Earnings before interest, tax, depreciation, and amortisation (R'000) 158 573 240 447 (34)
Earnings per share (cents) 11.86 27.94 (58)
Headline earnings per share (cents) 12.54 27.56 (54)
Dividend per share (cents) 2.5 8 (69)
OVERVIEW
Prices for most of our commodities declined during the year. The impact on Insimbi's export and local revenue was
partially mitigated by the US$ base pricing of these commodities and an exchange rate that worked in our favour.
The global move to cleaner production and cleaner metals is steadily gaining traction. Cleaner metals are the
cornerstone of our business, and we continue to find an appropriate balance between maintaining sales and rising raw
material costs.
The South African government allowed the ban on exports of ferrous and non-ferrous waste and scrap metal to expire
in December 2023. For Insimbi, the ban primarily impacted our ferrous division. Our ability to adapt quickly to manage
the impact of this restriction underlined the resilient and diversified nature of our Group. In addition, operational
adjustments made at the time have benefited long-term efficiencies across the Group.
Group revenue decreased by 3% from R5,8 billion to R 5,6 billion. Operating costs reduced by 6% from 2023, employee
costs reduced by 8% or R14 million lower than in 2023. Other operating income for 2024 was R15 million lower than
the previous financial year, due to a gain on extinguishment of loan recognised in 2023. As a result, operating profit has
reduced by R77 million to R123 million in the current year.
Finance costs increased from R59 million to R73 million compared to previous year as a result of high interest rates
throughout the financial year. The Group repaid interest bearing debt of R40 million, however increased its working
capital facilities, resulting in an increase in net debt of R9 million. The increase in working capital facilities were
necessitated by the ban on exports.
Trade and other receivables at year end amounted to R637 million compared to R609 million at the previous financial
year-end, and the average trade receivables days increased from 37 days to 39 days. Further to this, R22 million was
released by our customers before year-end, however due to a "glitch" in the banking systems, only reflected in our bank
accounts after year-end. A total of R65 million was received in the first 24 hours after financial year-end. Inventories at
year-end amounted to R335 million (2023: R305 million). This increase is a result of importing product, as some products
are no longer being produced locally, coupled with delays in shipping and the impact of the exchange rates on the value
of products. Net working capital (Trade and other receivables + stock – trade and other payables) increased to R672
million from R634 million in 2023.
Cash generated from operations decreased from R158 million in 2023 to R122 million, due to the increased working
capital cycle. The debt-to-equity ratio at year end increased to 66% from 61% in the 2023 financial year.
DIVIDEND
No final dividend was declared for the 2024 financial year.
OUTLOOK
Our focus remains on supplying recycled and beneficiated ferrous and non-ferrous metals for local and export clients.
The global focus on decarbonisation and vehicle electrification continues to support higher copper and aluminium prices,
in turn boosting our revenue and margins. In addition, working capital and cash flow throughout our operations have
been very well managed, and we are steadily degearing our balance sheet. While the risk of external disruptions remains
high, we believe we have demonstrated the Group's ability to withstand these in recent years.
The local economy remains fragile, with gross domestic product (GDP) growth of just 0,9% in 2023 in the wake of higher
interest rates and inflation as well as a volatile rand.
SHORT-FORM ANNOUNCEMENT
This short form announcement is the responsibility of the Board and is only a summary of the audited consolidated
annual financial statements ("AFS") contained in the Group's integrated annual report ("Integrated Report") and does
not contain full or complete details. The Integrated Report is available at the following JSE cloudlink:
https://senspdf.jse.co.za/documents/2024/jse/isse/ISBE/FY2024.pdf.
Copies of the Integrated Report, including the AFS and full auditor's report are available on the Group's website at
www.insimbi-group.co.za. Any investment decisions in relation to the Company's shares should be based on the AFS.
The AFS have been audited by the Group's auditors, Moore Cape Town Inc, who expressed an unmodified audit
opinion thereon.
DISTRIBUTION OF THE INTEGRATED ANNUAL REPORT
Shareholders of the Group ("Shareholders") are hereby advised that the Group's Integrated Report, incorporating the
AFS for the year ended 29 February 2024 and the notice of the annual general meeting of the Group ("Notice of AGM")
was dispatched to Shareholders today, 31 May 2024.
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the annual general meeting ("AGM") will be held at 10:00 on Monday, 8 July 2024 at Insimbi
Offices at 359 Crocker Road, Wadeville, Germiston to transact the business as set out in the abovementioned Notice
of AGM.
Kindly note the following salient details:
Issuer name Insimbi Industrial Holdings Limited
Type of instrument Ordinary shares
ISIN number ZAE000116828
JSE code ISB
Meeting type Annual General Meeting
Meeting venue Insimbi Offices at 359 Crocker Road, Wadeville,
Germiston
Record date – to determine which shareholders are Friday, 24 May 2024
entitled to receive the notice of meeting
Publication/posting date Friday, 31 May 2024
Last day to trade – Last day to trade to determine eligible Tuesday, 25 June 2024
shareholders that may attend, speak and vote at the
meeting
Record date – to determine eligible shareholders that Friday, 28 June 2024
may attend, speak and vote at the meeting
Meeting deadline date (For administrative purposes, Thursday, 4 July 2024
forms of proxy for the meeting to be lodged)
Meeting date 10:00 on Monday, 8 July 2024
Publication of results Monday, 8 July 2024
Website link www.insimbi-group.co.za
COMPANY INFORMATION
Directors: F Botha (Chief Executive Officer) CA (SA)
N Winde (Chief Financial Officer) CA (SA)
RI Dickerson* (Chairperson)
N Mwale*
CS Ntshingila*
(*non-executive)
Company Secretary: M Madhlophe
Registered office: Stand 359 Crocker Road, Wadeville, Germiston, 1422
Website: www.insimbi-group.co.za
Sponsor: PSG Capital Proprietary Limited
Transfer Secretaries: Computershare Investor Services Proprietary Limited
Auditors: Moore Cape Town Inc.
Johannesburg
31 May 2024
Sponsor
PSG Capital
Date: 31-05-2024 12:56:59
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