Insimbi Refractory and Alloy Supplies has refrained from paying a bumper dividend from its huge earnings haul in the year to end-March.
Speaking after the release of results on Tuesday, Insimbi CEO Fred Botha said there were acquisition opportunities that had been presented to the company. "There was a time when we were knocking on doors for new opportunities, but these days people are knocking on our door. We need to keep some powder dry."
Insimbi provides the steel, aluminium, cement, foundry, plastics, paper and pulp industries with resource-based commodities such as ferrous and nonferrous alloys as well as refractory materials.
Botha said Insimbi’s acquisition of Amalgamated Metals Recycling in 2016 had provided a compelling transaction template. "Keeping some cash back for leveraging acquisitions makes sense, especially plug-and-play opportunities."
Botha said Insimbi would be quite aggressive in assessing acquisition opportunities.
Insimbi reported a 142% hike in net profit to R71m, with cash generated from operations up 85% to R164m.
However, the board retained a conservative approach to distributions, declaring a final dividend of 3c per share.
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