Lifting and shifting, plus turning junk into money
ith the market these days showing a rather curious inclination to back niche fund management companies, one might expect more attention to be focused on Global Asset Management (GAM).
But GAM is not at all involved in fund management (cue name change proposal), and can be found toiling away valiantly in the industrial sector by offering financing on forklifts.
The forklift trade hardly seems a compelling business proposition, yet GAM earns a fair keep from this niche.
In the half-year to end May GAM’s profit performance was marginally below budget even though new rental contracts were
Wsigned. The bottom line was strained somewhat as cost of sales increased with a more aggressive depreciation policy being applied to secondhand forklift trucks. The rollout of new rental initiatives also increased operating expenses. Still, GAM managed to produce interim earnings of close to 10c/share, backed by reassuring operational cash flow of R39m (equivalent to around 85c/share).
The forklift business, dull as it may be to the many excitable small-cap punters on the JSE, does provide a fairly solid platform for GAM’s rather surprising diversification into the more riveting renewable energy sector through its new GAM New