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- Steel products group Argent Industrial says its investments offshore are paying off amid robust demand for fuel storage, including in the aviation industry.
- Group profit rose almost a quarter in its year to end-March, with the JSE-listed group more than doubling its dividend.
- Its overseas operations are expected to run at similar levels after an "incredibly good year", with one of its businesses expanding its operations by a third.
- For more financial news, go to the News24 Business front page.
Steel products manufacturer Argent Industrial said on Thursday its focus on offshore markets paid off in its year to end-March, allowing it to double its dividend, while its share buyback programme will continue.
Group profit rose 23% to R236.2 million in the year to end-March, Argent said, boosted by strong recovery in the global aviation industry. This helped its UK fuel storage businesses, which it is investing in operationally.
Argent upped its dividend 126% to 95c - about a R53 million payout, while it also spent about R15.3 million buying back its own shares.
Argent, valued at just under R900 million on the JSE, has businesses in SA, the UK and the US. It generates about 58% of its revenue in SA, about 23% in the UK, and 8% in the rest of Africa, actively exporting its products to 35 countries, including in Asia and the Middle East and Australasia.
The South African subsidiaries include the trading companies Phoenix Steel and Gammid, which both have trading and processing operations in the stainless, aluminium, and mild steel markets.
The retail manufacturing companies are Xpanda, American Shutters, Jetmaster, and Castor and Ladder, while its industrial manufacturing companies are Hendor Mining, a manufacturer of underground mining scrapers; Koch’s Cut and Supply, a specialist engineered steel jobbing shop; and Pro Crane Services, which manufactures industrial lifting equipment. It also owns Megamix, which is a concrete mixing and distribution company in the Western Cape, which also has a stone quarry located in Villiersdorp.
The UK subsidiaries comprise a number of specialist manufacturing companies, including Fuel Proof, which manufactures fuel storage solutions and offers rental options through Roll-Tec.
Fluid Transfer International and Flofuel manufacture mobile fuel storage systems for the international aviation industry, as well as the maritime and vehicle industry. OSA Door Parts manufacturers a range of industrial doors, while Partington supplies retail material handling solutions and Cannock Gates supplies iron and wooden gate products.
Argent said on Thursday its "overseas operations have had an incredibly good year" and are expected to run at similar levels given their current order book. Fuel Proof is currently expanding its production facility by a third to cater for the demand for larger vessels, fuel farms and transportable hydrogen storage units, as well as its fuel storage products having just launched in the US.
"The aviation sector is awaking from its Covid-19 slumber and Fluid Transfer and Flofuel continue to expand their presence in airports around the world," it said.
The US operation, New Joules Engineering, manufactures joule speed control retarder systems for rail yards - or devices that extract energy from rail cars if they are travelling too fast.
Shares in Argent were down marginally on Thursday afternoon, but have risen almost 13% over the past year, and more than quadrupled over the past five. Click here for details of its shares as well as other info.
