Barloworld reports solid performance in first-quarter trading update
Diversified industrial multinational Barloworld has reported a solid performance in first-quarter trading update of the current financial year.
The results for the three months ending December 31, were further supported by sustainable cost management and healthy free cash flow generation by the group’s core operations, the company says.
“The group remains within its target debt and gearing levels remain well within our covenants, with net debt to earnings before interest, taxes, depreciation and amortisation (Ebitda) well below one times, with the group target being three times, while Ebitda interest cover exceeds eight times, with the group target being greater than three times.
Revenue growth
“We have reviewed our current facilities, including committed and non-committed facilities, as well as headroom on the existing medium-term note programme and remain satisfied with the positive state of our headroom, gearing and liquidity,” stated the company.
Barloworld notes that Equipment Southern Africa continues to perform well in what remains an uncertain operating environment. Underlying activity remains strong with an increased firm back order. However, the supply chain disruptions resulted in the delayed delivery of large mining package deals, the company says.
Mozambique, Zambia and Angola delivered exceptional revenue growth on the back of bullish coal, copper and oil prices. The significant growth in these three countries was offset by slow deliveries in South Africa and Botswana. Operating margin is tracking above the comparable period in the prior financial year, driven by well-controlled expenses. Further, the Bartrac joint venture in the Democratic Republic of Congo delivered strong results, contributing a positive share of associate profits.
