Winhold earnings up

Johannesburg, Nov 28 (I-Net Bridge) - Investment holding group Winhold [JSE:WNH] on Monday reported headline and diluted headline earnings per ordinary share of 15.22 cents for the year ended September 2011, from 20.75 cents previously

It recorded earnings and diluted earnings per ordinary share of 13.26 cents, from 19.78 cents in 2010.

External revenue declined to R990.3 million, from R1.03 billion, with operating profit down to R28.045 million, from R51.227 million before.

Winhold announced an ordinary dividend declaration of 0.07 cents per share, down from 10.0 cents in 2010.

Winhold is a holding company with its main investments being in its subsidiaries Gundle and Inmins. Gundle comprises two manufacturing and distribution operations in Gauteng and one in Swaziland, as well as a further five distribution centres in the main coastal cities, Bloemfontein and Mbombela.

Gundle manufactures polyethylene and polypropylene bags, construction sheeting, consumer and industrial packaging, agricultural film and dam linings and distributes to the agricultural, chemical, construction, food processing, industrial and consumer markets, as well as installing dam linings in sub-Saharan Africa.

Inmins comprises 19 strategically located operations servicing the mining and industrial sectors with a wide range of consumable and maintenance products, and includes divisions specialising in hose, mining pipe systems, chain and sprocket systems and conveyor belting.

Winhold attributed poor results mainly to the extraordinary number of holidays in April, as well as the industrial action during July 2011.

Looking ahead, Winhold said for Inmins, the sale of the specialist products of the group through the whole network was gaining momentum. It was expected to increase both the revenue and margins in the year ahead. "The efforts to find additional products continue".

The new management team at the value added division had settled in well, the group said. "The sales and marketing effort has been improved and should lead to better market penetration. Facilities to fabricate lined steel pipe have been commissioned and the first orders have been received. Delivery of the first product should be in January 2012," the group said.

Gundle had positioned itself as a market leader in many of the products it provided, and had created niches with specialised products. "Due to the capital expenditure incurred over the last three years, new products have and are being developed to service existing and new markets which should improve the profitability of the group. The emphasis internationally on water preservation continues and Gundle GeoSynthetics should therefore continue to grow.

"The Gundle share of the consumer packaging market is small. Improvements in the production facilities provide the opportunity to grow in this market and some success has already been achieved," it concluded.