Our opinion on the current state of IVT

The Invicta Group consists of five operational segments, namely: 1. Replacement parts, Services, & Solutions: Industrial; 2. Replacement parts, Services & Solutions: Auto-agri; 3. Capital Equipment; 4. Replacement parts, Services & Solutions: Earthmoving equipment; and 5. Kian Ann Group. Christo Wiese (of Steinhoff fame) is the chairperson and owns a 37,57% shareholding. In its results for the six months to 30th September 2023 the company reported revenue up 12% and headline earnings per share (HEPS) unchanged. The company’s net asset value (NAV) increased 22% to 4992c per share. The company said, "...solid operational performance resulted in an improvement in net profit of 8% to R356 million. Focus will continue to be on debt reduction, as higher interest rates have meant an increase in finance costs of R22 million, which were mainly offset by the R19 million improved contribution in equity accounted earnings from Kian Ann. The Group repurchased approximately 1% of its ordinary and 3% of its preference shares in issue in the period, to the value of R49 million, resulting in earnings per share increasing by 32 cents from 272 cents to 304 cents per share". Technically, the share gave a solid on balance volume (OBV) buy signal on 5th June 2020 at 644c per share. Since then the price has risen to 2689c but it is still well below its NAV. We believe that it will continue to perform.