PSV to focus on valves and industrial supplies

The company in August announced it had sold its pumps business to WPIL‚ an Indian pump business for R54m. This was part of a restructuring plan.

PSV Holdings would then be composed of two business segments: Valves and Industrial Supplies and Specialised Services. The company on Friday released its financial results for the six months to August. During this period‚ it achieved an increase of 65.7% in revenue. Its headline earnings per share climbed from 0.61 cents to 1.72 cents.

"The successful sale of the pump segment for R54m coupled with the recovery of R14 million from loan accounts and the sale of the Petrologic business to Tokheim International‚ ensured that PSV was able to liquidate primary debt as well as eliminate a major loss making subsidiary.

"Subsequently permitting management to implement the last phase of the restructuring programme‚ which includes decentralising the underlying businesses‚ the benefits of which we expect to see in the coming six months‚" CEO Abie da Silva said.

During the reporting period‚ PSV's valves and industrial supplies segment created 62% of the consolidated group revenue. This segment's revenue grew about 88% to R112.7m from R59.8m.

Subsidiaries‚ Omnirapid and Turbo Agencies showed organic growth over 30%.

The specialised services segment contributed the remaining 38% to consolidated revenue with an increase in revenue to R69.6m from R50.2m.

Da Silva said this was thanks to an overall improvement from PSV's Engineered Linings business‚ which was able to increase revenue generated by 65%.

The sale of Petrologic made up the bulk of losses from discontinued operations of R23.6m.

In July this year‚ PSV paid a once-off special dividend of R9.2 million from the proceeds of the sale of the pump segment.

Da Silva said the group's cash flow was not affected strongly and that the group remained pleased with cash and cash equivalents of R17.5m at the end of the period.

He said he expected to see more positive returns from the restructuring in the next six months.

"PSV has repositioned‚ restructured and decentralised the business model in an effort to gain momentum from what remains a difficult operating environment"‚ he said.