Another gloomy trading update, this time from Anglovaal Industries Limited (AVI), which has let it be known that they grew revenue just +0.2%, from the R7.3bn they reported for the first six months of the year through December. This, they said, will send the headline earnings scuttling down by the tune of 7% or so. What gives? For one, I&J locked itself into fuel contracts, betting against a drop in the price, and we know how that went. The restructuring of the Green Cross shoe business will weigh heavily on the balance sheet, for another, and December sales over at Spitz weren’t all that, either. Elsewhere in the business, though, while sales were on the flat side, they weren’t as bad as they might have been: AVI has a strong portfolio of brands that are focused at the upper end of the market where cash – another strength of the business – is more abundant.
Comment: Still, a rising tide lifts all boats, they say, and we haven’t heard the rushing of the waters around here since the year dot.