| Tue 25 Mar 2008, 9:09 | | OLI - High voltage interim results from O-Line Limited |
|
OLI
OLI
OLI - High voltage interim results from O-Line Limited
O-line Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number 2006/034685/06)
JSE share code: OLI
ISIN Number: ZAE000110730
("O-line")
High voltage interim results from O-Line limited
It`s a story of "power" for cable management and support system manufacturer, O-
Line Holdings Limited, which reported its maiden interim results for the six
months ended in December 2007 today.
On the positive side the company stands to play a vital role in the
commissioning of the massive additional power generation capacity which power
utility Eskom has committed itself to.
On the negative side, the current shortage of power has seen a number of major
infrastructure projects put on the back burner - especially in the mining
sector.
In spite of this, the company has weathered the current economic difficulties
well, turning in revenue for the first six months of R83,7 million with an after
tax profit of R7,5 million. Headline Earnings Per Share were 6,71 cents.
Says CEO, Graeme Smart:
"Power is the operative word today with its demand bringing the requirement for
cable management and support systems, which is the core of O-Line business."
Smart says that although, O-line, like many other companies, is experiencing
problems around consistency of the power supply and a shortage of steel, which
is leading to frequent price increases, it is taking remedial action.
Where possible, he says, the company has engaged in forward buying and is re-
arranging its production operations to make up for increased down time and loss
of output.
In addition, it has embarked on a major capital expansion programme to purchase
advance machinery, some of which has already been installed and the remainder
still inbound from Germany, to improve its production capabilities to be able to
cater for the anticipated growth in infrastructural development in South Africa
and into Africa.
Since December, the company has tendered on projects valued at around R60m, a
large percentage of which are outside of South Africa`s borders. Some of these
are expected to materialise in the next few months.
The company`s current strategy, says Smart, is to expand its operations into
Africa to be able to assist, on the ground, with the continent`s booming
infrastructural development. It is in finalization of the branch establishment
in Maputo, Mozambique and feasibility studies for branches in Tanzania and Congo
are on going. A range of new products for both the commercial and industrial
markets is also to be launched.
Current projects which O-Line is busy with include the Lumwana Copper Mine in
Zambia; a new benzene plant for Sasol at Secunda; the Athicem project in Kenya;
the Power House 2 SRL project in Sierra Leone, an expansion project for Holcim
Cement in Roodepoort; and the Cape Town and Port Elizabeth soccer stadiums for
2010.
Says Smart:
"We are extremely upbeat about the infrastructure expansions in all industries,
with a particular focus on the power, mining and petrochemical sectors. As
things stand, we are on track to meet our prospectus forecasts for the year end
in June."
Johannesburg
25 March 2008
Designated Advisor
QuestCo Sponsors (Proprietary)
Limited
Date: 25/03/2008 09:09:49 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
