ELB Group Limited. JSE: ELR

ELB shares

Background of ELB Group

  • ELB Group is an a internationally recognised engineering solutions provider to the mining, industrial, power, construction, minerals and port sectors, with expertise in the fields of materials handling, industrial projects, power solutions and mineral separation. The company’s history stretches back more than a century. The company today operates mainly in Africa and Australasia, with offices on five continents.

  • The group is split into two main divisions: ELB Equipment and ELB Engineering Services. ELB Equipment supplies locally-designed and manufactured products and also represents internationally-renowned manufacturers. The division offers construction equipment, earthmoving equipment and mining/quarrying equipment, as well as parts, field service and refurbishing facilities.

  • ELB Engineering Services focuses on provision of a total engineered materials handling solution to the target sectors. Ports of Africa is a partnership with A-Cubed Consulting, designed to fill a need for port terminal refurbishment and upgrades. EPE is a total solutions provider to the metals and minerals industries, specialising in design and construction of modular plants and supporting infrastructure. Based in Australia, Ditch Witch is an importer and distributor of underground and utility construction equipment.

  • ELB’s performance has been heavily affected by deteriorating trade conditions, with the live online stocks chart showing that ELB share price fell from record highs of R50 in 2014 to R17.50 by mid-2016.

ELB Group Shares Growth Driver

  • The group has fallen victim to weakened commodity prices and the global economic slowdown, exacerbated by protracted labour strikes and slow economic growth in South Africa. Delayed large infrastructure spending in both the public and private sectors has also severely impacted the group’s performance, forcing ELB to put non-performing assets up for sale and focus on other growth avenues.

  • Efficient’s latest financial data, covering the six months ending February 2016, reflect satisfying performance, with revenue growth of 24% and headline earnings per share increasing by 51%, with corresponding improvements in dividends and Efficient share price.

  • The group’s latest financial data shows that the company made a loss of R30 million for the last six months of 2015. Sales were down by 20% to just over R1 billion, while shareholders suffered headline earnings losses of 138% per share. The group expects more difficult times going forward, with commodity prices, the rand and delay and cancellation of capital expenditure projects continuing to pose huge obstacles.

  • In light of the challenges, the group has decided to buy into a number of initiatives to try and turn things around. These include the signing of a 50/50 joint venture for the distribution of Belaz haulage trucks, the establishment of an in-house construction company to speed up projects and quality, and moves to buy into new areas such as air cleaning solutions and biomass power plants.

ELB Group Investor Tip

  • Despite making huge operational losses, ELB has managed to maintain payment of dividends due to a well-reinforced balance sheet. This has instilled some confidence in shareholders, but ELB share price will continue to suffer under the tough trade conditions. A healthy cash cushion will be enough to see ELB through the lean times and result in a rebounded ELB share price. The company looks well set to capitalise on long-term growth opportunities, meaning that ELB shares could be an undervalued and profitable buy for patient investors.

ELB Group Major Shareholders

ELB International (Pty) Ltd. And Tanjo One (Pty) Ltd.

  • Sector

    Industrials

  • Industry

    Machinery

  • Sub industry

    Construction & Mining Machinery

How to buy ELB Group Shares

  • ELB Group : How to buy ELB Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy ELB Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in ELB Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase ELB Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in ELB Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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