| Mon 26 Jan 2004, 9:36 | | Ventel emerges from undertow of erratic leadership |
|
Ventel emerges from undertow of erratic leadership
--------------------------------------------------------------------------------
Firm still biggest supplier of trailers in SA
Trade and Industry Correspondent
VENTER Leisure and Commercial Trailers (Ventel) has emerged battle-scarred from its troubled history, but appears to be in good shape now to turn the corner.
The company's trailers , which are common on South African roads, have made their way to the Middle East and Australasia after the company signed its first export contracts. Ventel now has its sights set on Europe.
This together with improvements in operations and financial performance suggest that the company could be putting its controversial past behind it.
The jury is still out, but media-shy German businessman Detlef Hamann, who owns 81% of Ventel, appears to have saved the sinking ship. He also plans to increase the liquidity of his share.
Ventel's past is riddled with lawsuits, and was nearly destroyed by Michael Katcs, who shot himself two years ago.
Ventel has been a controversial company since Katcs took it to the stock market in the early 1990s, moving to and fro between profit and loss.
The end of the company was in sight when production at the company's Naboomspruit factory came to a halt last year, shortly after Hamann took over deceased Katcs' stake in Ventel.
Hamann ploughed more than R16m from another company he controls, Metropolitan Power Services, into Ventel as working capital. Production costs have been cut substantially, mainly through investment in new equipment.
Ventel is now near break-even position, says Hamann. Last year's litigation has been settled out of court.
The firm has also beefed up its marketing capabilities, a move that helped Ventel secure several foreign contracts.
Despite the company's tumultuous history, Ventel has managed to maintain its position as the largest supplier of trailers in SA.
"That we are still the biggest supplier is undisputable," says Hamann.
He declines to reveal the company's market share, but listed Ventel was said to have had about two-thirds of the market in its heyday.
Hamann says the domestic trailer market has been fairly stagnant, but he hopes to stimulate fresh demand by introducing new products, which Ventel developed last year.
Strong consumer confidence, based on lower interest rates among other things, also bodes well for trailer sales this year.
In other export developments, Ventel is in the process of obtaining quality certification, to enable it to export trailers to Europe. Hamann hopes to finalise the process in March.
Hamann's share of Ventel, held through Dunrose Investments, rose to 81% when he made a mandatory offer to minorities shortly after Dunrose acquired Katcs' share.
Hamann says it was never his intention to have such a large shareholding.
The German businessman is looking to reduce his shareholding, a move that could improve the share's liquidity, which the JSE Securities Exchange SA probably eagerly awaits.
Hamann says the intention is for the company to remain listed.
Ventel's share price traded briefly at a peak of about 40c four years ago, and a low of about 2c two years later.
The share is now trading at about 11c.
Jan 26 2004 07:20:59:000AM Carli Lourens Business Day 1st Edition
Monday
26 January 2004
