Focus on aftermarket sales pays off for Torre

IN its maiden annual results since listing on the JSE’s AltX in November last year, Torre Industrial Holdings reported headline earnings per share of 4.31c for the financial year ended June.

Torre, the industrial holding company that previously traded as SA French, said yesterday its “significantly strengthened” balance sheet, and greater focus on aftermarket sales and spare parts, had allowed it to grow profitably.

This was despite “turbulent” trading conditions during the year, with a volatile rand and a “slow” domestic economy being worsened by disruptions in the mining and agricultural sectors.

Group revenue was R83.1m compared with R52m in the prior financial year, while the headline profit attributable to ordinary shareholders was R3.7m — a turnaround from a R6.2m loss previously. Torre said a growing recovery in the construction sector “bodes well for SA French in particular going forward”. Torre’s wholly owned subsidiary SA French is the exclusive distributor in subequatorial Africa of Potain tower cranes.

Torre’s existing operations comprise two plant and equipment businesses — SA French and Forktech, and one engineering supplies business — Tractor and Grader Supplies. The group said all its subsidiaries are “positioned for expansion into Africa”.

SA French’s turnover was negatively affected by labour unrest in the mining and construction sectors, while agricultural labour disputes and the unusually late fruit seasons had affected Forktech’s revenue, Torre said.

Tractor and Grader Supplies, which was included in the group with effect from June 1, “made a strong contribution in its opening month that was ahead of budget”. Torre said there were “signs of a recovery in the construction equipment market” as orders were being received by SA French and all of SA French’s cranes were out on rental.