BUSINESS REVIEW
5
BUSINESS REVIEW
OVERVIEW
The land debate, together with political uncertainty, had a negative im-
pact on the business confidence of the industry and producers de-
creased their investment and spending in the sector. Senwes did not
escape this and the impact is clearly visible in respect of the clients’
spending on agri-equipment. Add to this a build-up of maize surpluses
over the past two seasons and below-average pre-season rainfall, then
the challenges faced for the current season are much bigger.
A profit after tax of R156,5 million was realised, which is 6,8% higher
than the previous year. Normalised headline earnings increased by 0,7%
to 98,5c per share. The balance sheet, despite the higher credit book,
performed well and the own capital ratio of 42% (2017: 36%) is well
within the set caveat of 35% - 45%.
senwes interim results 31 october 2018