Empowerment group Labat Africa has shown slow growth in the year ending 28 February, with group turnover increasing by 9%, from R244.2 million in 2001 to R244.9 million in 2002.
Earnings before depreciation reduced by 24% to R40.1 million, including a forex loss of R5.01 million, as opposed to a forex gain of R10.1 million in the previous year. Basic earnings per share were therefore reduced by 14% to 17.7c. Tangible net asset value increased 29% to 66.8c a share.
Labat says in its annual report that it was a difficult trading year, particularly for exporting businesses, because of the recent volatility of the rand. It says 488 600 shares were purchased by the company in terms of a share buy-back arrangement relating to the employee incentive scheme. The group says its growth in investments for the year expanded its IT division.
During 2002, the group`s subsidiary SA Micro-Electronic Systems (SAMES) performed particularly well, despite the rand`s volatility. The group has invested R28.6 million in a new SAMES plant and plans to develop new markets in the Americas this year. The division manufactures integrated circuits.
Labat Traffic Solutions is also expanding its market share nationally, and the group is exploring opportunities in neighbouring countries. It has acquired a 51% stake in local software house Total Computer Systems.
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