• Air Products South Africa PROPRIETARY Limited (Air Products)

    Air Products has a September year-end, but its results for the twelve months ended 31 March 2019 have been included in Remgro’s results for the year under review. Air Products’ contribution to Remgro’s headline earnings for the period under review increased by 18.7% to R343 million (2018: R289 million).

    Turnover for Air Products’ twelve months ended 31 March 2019 increased by 8.8% to R3 148 million (2018: R2 894 million), while the company’s operating profit for the same period increased by 12.7% to R964 million (2018: R855 million).

    Air Products is the largest manufacturer of industrial gases in Southern Africa and also imports and distributes a variety of specialty gases that are supplied to a wide range of industries including steel, chemicals, oil refining, resource minerals, glass, pulp and paper, food packaging as well as general manufacturing, fabrication and welding.

    Trading conditions remained difficult during the period in most sectors of the business. Modest overall volume growth and cost containment measures contributed to operating profit growth despite significant pricing pressure.

  • Kagiso Tiso Holdings PROPRIETARY Limited (KTH)

    KTH is a leading black-owned investment holding company with a strong and diversified asset portfolio comprising a mix of listed and private investments in the media, financial services, industrial, services and healthcare sectors.

    KTH’s contribution to Remgro’s headline earnings for the year amounted to R161 million (2018: R55 million). The increase in KTH’s headline earnings was mainly driven by the net decrease in finance costs to R105 million (2018: R208 million) following debt repayments during the year, as well as its net attributable share of positive fair value adjustments on the investment in Actom Investment Holdings Proprietary Limited (R132 million) and Momentum Metropolitan Holdings Limited (R27 million). This was partially offset by losses recognised on the investment in Macsteel Services SA (R42 million).

    KTH’s earnings for the year amounted to a loss of R90 million (2018: profit of R738 million). Income from equity accounted investments decreased to R244 million (2018: R1 207 million), mainly due to the comparative period, which included profits from Servest Group Proprietary Limited (R962 million) from the disposal of a significant foreign operation. The current year included positive results from Momentum Metropolitan Holdings (R129 million), as well as increased contributions from Fidelity Bank (Ghana) due to improved performance over the period (R96 million). Included in earnings was the loss on disposal of the investment in XK Platinum Partnership of R19 million. Significant impairments were recognised on Servest Group, Fidelity Bank (Ghana) and Me Cure Healthcare during the period totalling R442 million.

  • Total South Africa PROPRIETARY Limited (Total)

    Total has a December year-end, but its results for the 12 months to 30 June 2019 have been included in Remgro’s results for the year under review. Total’s contribution to Remgro’s headline earnings for the year under review amounted to R328 million (2018: R501 million).

    The results were impacted by unfavourable stock revaluations of R2 million (2018: R1 205 million, favourable), as the international oil price decreased from $74.3 per barrel, at 30 June 2018, to $64.1 per barrel at 30 June 2019.

    Total’s turnover for the 12 months ended 30 June 2019 increased by 26.5% to R75 432 million (2018: R59 637 million). The increase in turnover is mainly due to increased volumes sold in the mining and commercial sectors at a higher average basic fuel price compared to prior period.

    The company has continued with its investments regarding health, safety and environment (HSE) to comply with increased stringent legislation and developing group requirements. The key focus areas are environmental compliance as well as health and safety compliance by staff, transporters and construction contractors.

    Natref’s results improved for the period under review due to higher refinery availability and utilisation, as the fourth quarter of the comparative period was impacted by a planned major shutdown and inspection, as well as unplanned shutdowns. This was offset by significantly lower refining margins due to the impact of the unfavourable economic environment.

  • PGSI Limited (PGSI)

    PGSI has a December year-end, but its results for the 12 months ended 30 June 2019 have been included in Remgro’s results for the year under review. PGSI’s contribution to Remgro’s headline earnings for the year under review amounted to a loss of R9 million (2018: profit of R4 million).

    PGSI’s turnover for the period under review increased by 3.7% to R4 331 million (2018: R4 175 million) for the period under review. The group’s normalised operating profit, which excludes the impact of asset impairments, has however remained flat year on year, as both volumes and pricing in all markets were adversely impacted. The results reflect the impact of the weak domestic market, and the overcapacity in global glass markets which has resulted in significant competition from low-priced imported product.

    The group’s main operating subsidiary in South Africa, PG Group, manufactures and supplies glass for the building and automotive industries. The building sector remains depressed, and the building glass businesses reported a decline in profits during the period driven by weak domestic demand and growing pressure on selling prices in a competitive and oversupplied market. Economic pressures on consumers also negatively affected the automotive sector where new vehicle sales are slow, and there have been significantly lower claims from the Insurance sector.

    The group is focusing on lowering the cost to market, improving the service to customers and ensuring efficiencies in all aspects of the business. Investments are being made in IT systems to improve service offerings and costs to deliver. These initiatives will place the business in a good position to compete strategically in the current difficult economic climate.


    Wispeco’s turnover for the year ended 30 June 2019 increased by 4.9 % to R2 377 million (2018: R2 266 million). The increase can be attributed to higher selling prices driven by higher raw material costs, while margins remained under pressure. Raw material costs depend on the rand/dollar exchange rate and the worldwide aluminium commodity price in dollar terms. Headline earnings decreased by 1% to R121 million (2018: R122 million). Included in headline earnings is a once-off accounting profit realised in respect of Pressure Die Castings’ purchase consideration amounting to R22 million. Excluding this once-off profit, headline earnings decreased by 18.9% to R99 million, mainly due to the fact that Southern African demand for aluminium extrusions did not grow in the past year and price competition remains fierce.

    Wispeco’s plans for the year ahead include further investments in cutting-edge technologies to improve efficiencies and increase flexibility in order to meet market needs. Wispeco remains firmly engaged on the path to become a world-class manufacturer of aluminium extrusions. It remains committed to the intent to maintain the shortest possible make-to-order lead times thereby maximising the customer experience.

    The company’s Crealco range of architectural products signifies novelty and quality. The brand carries the reputation of being the preferred choice for specification by architects and the range is continuously being expanded and improved. Wispeco’s class-leading design software (offered to its customers) continuously evolves to support modern customisation, cost-effective design and compliance to building regulations.