Despite political uncertainty, currency volatility and difficult trading conditions the ELB Group has managed to lift itself out of its 2016 financial slump with a return to profitability across all group segments.

The engineering solutions provider says profit for the year increased to R82 million in 2017 from a loss of R189 million in 2016, while sales for the year improved by 39%, to R2 480 million in 2017 from R1 783 million in 2016.

The group attributes this significant turnaround in profitability to the stabilisation of global commodity prices, an easing in trading environments, delayed projects commencing, as well as the favourable effects of a stronger rand.

ELB explains: “The right-sizing and positioning of the Group undertaken in the previous financial year, together with some strengthening in certain commodity prices and a firming of our order book, has enabled the Group to return to profitability.”

Driving growth

The group adds that it continues to drive a number of initiatives to position itself to achieve sustainable growth, for which returns will typically only be realised in the future.

These initiatives include ELBs further diversification into providing alternative energy power plants of up to 50 MW and the leveraging of expertise gained in the industrial sector, specifically in the fast-moving consumer goods (‘FMCG’) field.

“A number of projects are either currently ongoing or in the pipeline in these fields.” Furthermore, the Group has increased its know-how base significantly in the minerals beneficiation and fine powder handling sectors, by forming partnerships with ENFI (China) and Haver & Boecker (Germany) respectively and continues to pursue other technology focused partnerships.

“This will further allow the Group to provide a broader service offering to its existing and future clients,” ELB explains.

Other indicators which have showed a marked improvement for the year include cash flow,  sales in equipment and engineering services, and headline earnings.