Argent Industrial (ART) H1 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 September 2024 declined by 3.3% year-over-year, but headline earnings per share rose 3.7% to 231 cents and basic earnings per share increased 3.4% to 231.7 cents.

• Profit attributable to owners was R126.1 million, up from R124.6 million in the prior period.

• The group acquired Standmode Limited and its subsidiary in the UK for R159.3 million, expanding its modular building business.

• An interim dividend of 60 cents per share was declared, up from 55 cents in the prior period.

Financial highlights

• Revenue: R1.26 billion, down from R1.31 billion year-over-year.

• Gross profit: R367.8 million, slightly up from R365.1 million.

• Operating profit before finance: R175.4 million, up from R172.5 million.

• Net asset value per share increased to 3,265.9 cents from 2,879.2 cents.

• Cash generated from operations was R209.8 million, with net cash inflow from operating activities at R143.9 million.

Outlook and guidance

• The group expects improved economic conditions in South Africa by February 2025, driven by anticipated interest rate cuts and stronger local steel prices.

• Offshore expansion will continue, with a focus on growing local brands and increasing international exposure.

• The acquisition of Xpanda Canada post-period is expected to contribute positively in future results.