Steven Brian Joffe
Chief Executive Officer


Against the backdrop of a world facing both economic and geopolitical uncertainty, we are pleased to present on behalf of the Board, a strong set of results for the Group. These results reflect how the Group’s businesses have recovered remarkably well from the effects of the Covid-19 pandemic and the associated lockdowns. Considering all the challenges of 2022, we are especially proud of how we were able to grow basic earnings per share from continuing operations by 92%, from 212 to 408 cents.


As a result of our corporate actions over the past two years, we have re-assessed our reporting segments. We now report six operating segments:

– Replacement Parts Services and Solutions: Industrial (RSS: Industrial) – RSS: Industrial consists of the core businesses previously reported under the Engineering Solutions Group. This segment focuses on the import and local manufacture of products, services and solutions for all industries in Southern Africa. RSS: Industrial offers world class solutions and products with the aim to improve the efficiency of our customers and ensure that they remain globally competitive.

– Replacement Parts Services and Solutions: Auto Agri (RSS: Auto-agri) – RSS: Auto-agri which operates in South Africa and certain European countries, consists of automotive and agricultural businesses, previously reported under the Engineering Solutions Group. This segment focuses on the importation and distribution of automotive aftermarket parts and Original Equipment Manufacturer (“OEM”) kits, as well as driveshaft parts and other replacement parts for the agricultural industry.

– Capital Equipment and related parts and services (CE) – CE consists of the businesses previously reported under the CEG segment that sell capital equipment, spare parts and provide the related services to the earthmoving, construction, mining and logistics industries.

– Replacement Parts Services and Solutions: Earthmoving equipment (RSS: Earthmoving) – RSS: Earthmoving consists of businesses previously reported under the Capital Equipment Group (“CEG”).

– Kian Ann Group (KAG) – KAG increased its shareholding in MIH from 50.01% and in KKB from 27.604%, respectively to 100%, in August 2021, the Group reduced its interest to 48.81% of KAG. Hence, KAG began to consolidate the financial results of both MIH and KKB as 100% subsidiaries from August 2021. The Group equity accounts KAG from this date as a joint venture.

– Corporate Group – Comprises MacNeil Plastics and Group support services including financing, investment, and property operating in South Africa.

RSS: Industrial
Revenue increased by 8.4% from R4.1 billion to R4.4 billion. However, revenue still trails pre-Covid levels by 7%. Operating profit before interest on financing transactions and foreign exchange movements increased by 11.5% from R297.9 million to R332.2 million.

RSS: Auto-agri
Revenue increased by 19.2% from R435.0 million to R518.4 million, this is an increase of 24.9% on the pre-Covid revenue levels. The war in Ukraine has affected our Ukrainian business negatively and, due to the uncertainty of the war, a decision was made to impair all Ukrainian assets totaling R14 million. Despite these impairments, operating profit before interest on financing transactions and foreign exchange movements increased by 21.6% from R77.5 million to R94.2 million.

Revenue of CE increased by 16.8%, from R909.4 million to R1.06 billion and operating profit before interest on financing transactions and foreign exchange movements decreased by 39.2% from R186.7 million to R113.4 million, as a result of the R76.8 million profit on the disposal of the CEG agricultural businesses recognised in the prior year.

RSS: Earthmoving
Revenue increased by 39.5% to R547.4 million, well above previous revenue levels. This includes the newly acquired subsidiary KMP; which contributes 20.2% of the revenue of R547.4 million. The operating profit before interest on financing transactions and foreign exchange movements increased by 23.6% from R55.8 million to R68.9 million.

KAG contributed R487.2 million to Group earnings for the current year of which R385.3 million was profit from discontinued operations and R101.9 million from equity accounted earnings from the joint venture. This included R374.9 million of one-off items such as the gains on remeasurement, a fair value loss on derivatives and amortisation of purchase price allocation intangibles. The prior year loss from KAG’s discontinued operation of R12.4 million, included an IFRS 5 impairment of the KAG disposal group of R76.9 million.


We aim to grow a diversified sustainable replacement parts Group, providing above market returns to stakeholders. We
constantly review and restructure our existing businesses to ensure they achieve the desired returns. We aim to have a
geographical (50% of the Group income is outside of South Africa) and a sectorial diverse Group within four years.

The world is in a precarious position. The zero-Covid strategy in China and the associated lockdowns will have a detrimental impact on the world’s supply chain. The war in the Ukraine and its associated impacts on commodity and food prices will be felt worldwide. Rising inflation worldwide will result in borrowing costs increasing, thus creating more pressure on the consumer. Lastly, the Covid-19 pandemic is not done, with South Africa entering its fifth wave.

With so much uncertainty in the world, we will continue to work hard on reducing our net debt position. When we think of net debt, we include the listed preference shares. Having a relatively debt free business, strategically positions us to respond to difficult situations and, at the same time, provide the capacity for us to implement our acquisition strategy should the opportunities arise.


We are pleased to increase our dividend declaration by 50% from 60 cents to 90 cents per share for the year.


The Board is highly appreciative to the executive management, the respective management teams of our businesses and most importantly all the staff, for the excellent commitment and performance during unprecedented worldwide trading conditions.

The Board is confident that the Group having successfully faced the initial challenges of which include the COVID-19 pandemic, will grow from strength to strength.


The Directors take full responsibility for the preparation of the Summarised Audited Consolidated Results, and confirm that the financial information has been correctly extracted from the underlying Audited Annual Consolidated Financial Statements.


Ernst & young Inc. are the Group’s auditors and have issued an unmodified opinion on the Audited Annual Consolidated Financial Statements. A copy of the auditor’s report including the key audit matters is available for inspection at the Company’s registered office, together with the Audited Annual Consolidated Financial Statements identified in the auditor’s report, as well as on the Company’s website at This summarised report is extracted from the audited information, but is not itself audited.

The auditor’s report does not necessarily report on all of the information contained in this announcement. Shareholders are therefore advised that in order to obtain a full understanding of the nature of the auditor’s engagement they should obtain a copy of the auditor’s report together with the accompanying financial information from the issuer’s registered office.

On behalf of the Board

Steven Joffe

Chief Executive Officer

Nazlee Rajmohamed

Group Financial Director