2022 was an eventful year marked by strong demand, ongoing problem-solving of supply chain challenges and product cost pressures driven by global demand, high inflation and exchange rate volatility.

Although the financial returns for 2022 are not yet at the targeted level, the business has made strides in the right direction and we look forward to further improvement in 2023.

Financial Performance

Revenue of R10,3 billion for 2022 was 28,2% up on 2021 sales of R8,0 billion. The first half of the year was constrained by component shortages at the factories which impacted production and sales volumes, but the supply chain was more reliable in the second half of the year and this facilitated the catch up of production and improved delivery of machines and invoicing to customers before year end. Revenue for the second half of the year was 43,0% up on the first half of the year. This also had a positive impact on inventory levels and borrowings and we are satisfied with where these levels ended the year, especially considering the gearing up of the production schedule for higher demand in 2023.

The group earned a profit after tax of R478,9 million for the year, 62,7% up on R294,3 million earned for the 2021 financial year. The higher sales and higher production volumes at the group’s two manufacturing facilities had a positive impact on the bottom line. The positive impact of the higher production volumes on the profitability of the group is evident in the improved operating results reported for the group’s manufacturing operations in South Africa and Germany. Earnings per share and headline earnings per share were 478 cents and 473 cents respectively (2021: earnings per share of 300 cents and headline earnings per share of 294 cents per share) for the year. A final dividend of 90 cents per share was declared.

The company’s share price is still trading at a significant discount to net asset value per share and as this is an indicator of possible impairment in terms of IAS 36 Impairment of Assets, valuations and assessments were performed to determine the recoverable amount of the group’s main cash generating unit and certain other key assets in the group. No impairments resulted from the valuation of the cash generating unit. The usual, ongoing assessments of inventory and receivables resulted in certain provisions and allowances for expected credit losses being accounted for. Refer to note 5 in the annual financial statements for further details of this assessment.