Erbacon Investment Holdings Limited
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Erbacon Investment Holdings Financial Snapshot
Limited Operating Performance
Fast Facts The company reported revenue of US$130.49 million
during the fiscal year 2011 (2011). The company's
2 Montreal Road,, Glen Anil, 4051,South revenue grew at a CAGR of 67.16% during 2007–
Headquarters Address
Africa 2011, with an annual growth of 14.77% over 2010. In
2011, the company recorded an operating margin of -
Telephone + 27 031 5692866
4.54%, as against 11.31% in 2010.
Fax + 27 031 5692872
Revenue and Margins
Website www.erbacon.co.za
Ticker Symbol, Stock Exchange ERB, Johannesburg Stock Exchange
Number of Employees 2,532
Fiscal Year End February
Revenue (in US$ million) 130.49
Revenue (in ZAR million) 957.80
Return on Equity
SWOT Analysis The company recorded a return on equity (ROE) of -
24.07% for 2011, as compared to its peers, Wilson
Strengths Weaknesses Bayly Holmes-Ovcon Limited (Ticker: WBO), Raubex
Group Limited (Ticker: RBX) and Sanyati Holdings
Inorganic growth strategy Overdependence on selected region Limited (Ticker: SAN), which recorded ROEs of
21.75%, 17.49% and -18.58% respectively. The
company reported an operating margin of -4.54% in
Strengthened service portfolio Weak operating performance 2011.
Strong solvency position
Return on Equity
Opportunities Threats
Positive outlook of South African
High operating cost
economy
Venturing into overseas markets Skilled labor shortages
Liquidity Position
The company reported a current ratio of 1.19 in 2011,
as compared to its peers, Wilson Bayly Holmes-
Ovcon Limited, Raubex Group Limited and Sanyati
Holdings Limited, which recorded current ratios of
1.23, 1.97 and 1.53 respectively. As of February
2011, the company recorded cash and short-term
investments of worth US$5.02 million, against zero
current debt. The company reported a debt to equity
ratio of 0.24 in 2011 as compared to its peers, Wilson
Bayly Holmes-Ovcon Limited, Raubex Group Limited
and Sanyati Holdings Limited, which recorded debt to
equity ratios of 0.04, 0.19 and 0.21 respectively.
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Erbacon Investment Holdings Limited - SWOT Profile Page 1
Erbacon Investment Holdings Limited
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12
2.2.4 Operational Efficiency ......................................................................................................................................13
2.2.5 Solvency ..........................................................................................................................................................14
2.3 Competitive Benchmarking ..................................................................................................................................15
2.3.1 Market Capitalization .......................................................................................................................................16
2.3.2 Efficiency ..........................................................................................................................................................17
2.3.3 Capital Expenditure ..........................................................................................................................................18
2.3.4 Turnover – Inventory and Asset .......................................................................................................................19
2.3.5 Liquidity ............................................................................................................................................................20
3 SWOT Analysis ...................................................................................................................................... 21
3.1 SWOT Analysis - Overview ..................................................................................................................................21
3.2 Strengths ..............................................................................................................................................................21
3.3 Weaknesses .........................................................................................................................................................21
3.4 Opportunities ........................................................................................................................................................22
3.5 Threats .................................................................................................................................................................22
4 Company Statement .............................................................................................................................. 23
5 History .................................................................................................................................................... 25
6 Key Employees ...................................................................................................................................... 26
7 Key Employee Biographies................................................................................................................... 27
8 Locations and Subsidiaries .................................................................................................................. 28
8.1 Head Office ..........................................................................................................................................................28
8.2 Other Locations and Subsidiaries ........................................................................................................................28
9 Appendix ..................................................................................................................