Heinrich Kruger, chairman of the agri NWK board, ascribes the company’s positive financial results to its staff’s dedication and hard work.
“I take my hat off to these men and women’s hard work and enthusiasm. A business is as strong as its employees and management structures. I also would like to thank our shareholders and suppliers for their ongoing support,” he said.
The core operations of the group performed well in the 2018 financial year and realised R137 million after tax from continued operations.
In the process of managing out the loss-making operations, NWK incurred a loss of R117 million after tax from discontinued operations.
NWK’s net result showed a profit of R20 million after tax for the year ended 30 April 2018. A final dividend of 7c/share was declared.
The group’s financial recovery was achieved sooner than was initially foreseen. Divestment from loss-making operations was completed and all investments in other countries in Africa were discontinued.
NWK’s short-term strategy is to ensure the profitability of its core operations and to continue its involvement in its joint ventures.
“In the short term, NWK focuses on the maintenance and upgrading of the grain, trade and financing business. We are determined to win back the business that is flowing around NWK by improving our customer service and establishing a new internal culture of customer orientation,” said chief executive officer Theo Rabe at the annual general meeting of NWK Holdings Limited and NWK Limited, held on 29 August in Lichtenburg.
According to Rabe, shareholders and customers have reason to be positive about the business, even if NWK’s results for the past year do not reflect this yet.
“The share price of NWK Holdings and NWK Limited is undervalued. In addition to the recovery of profitability, various actions are planned to establish liquidity in the market and get the share prices at levels that are more representative of the actual value of the shares.”
