Spanjaard Limited. JSE: SPA

Spanjaard shares

Background of Spanjaard

  • Spanjaard Limited is a lubricants and allied chemical products manufacturer and distributor comprising a portfolio of subsidiary companies in South Africa and abroad.

  • Spanjaard produces around 150 specialised products with applications in the industrial, consumer automotive, marine and mining sectors, distributed through a network spanning 31 countries on five continents. All products are made in the group’s factory in Sandton. Subsidiaries include two metal powder companies, two property companies and three foreign companies trading in the UK, Netherlands and Australia.

  • The group’s history can be traced back to 1960, and Spanjaard shares were first listed on the Johannesburg Stock Exchange (JSE) in 1987. Spanjaard shares are today listed under the Specialty Chemicals sector of the JSE with a market cap of R26 million.

Spanjaard Shares Growth Driver

  • In 2016, 74% of sales revenue was generated in South Africa, with the balance generated from Asia, the rest of Africa and Europe. This was well below 2015’s figure of 83%, illustrating Spanjaard’s focus on geographical diversification.

  • The company attributes its growth to a state-of-the-art research and development facility, along with a strong management team and long-term business relationships with suppliers, service providers and customers.

  • Overall, Spanjaard’s financial data for the year reflected numerous challenges faced by the business, mainly with regards to changes in staff and board members. The group reviewed most of its contracts and structures for the year, and necessary remedial action was implemented where necessary. This resulted in a solid second half of the year, with local sales in particular contributing to an improved sales figure.

  • The group’s performance improved from 2015, with operating profits of R8.1 million compared to a loss of R1.7 million. Special lubricants and allied chemicals contributed 92% of revenue, with 4% contributed by metal powders and 4% by other businesses. Metal powders have struggled with quality issues from suppliers which have led to lost sales, and the industrial and marine businesses faced extremely tough trading conditions.

  • Revenue growth in exports was disappointing at 3%, despite the company’s ongoing efforts to strengthen this area. The group has identified various growth opportunities in Asia, including the possible purchase of a company there. The company’s balance sheet is looking stronger due to increased debt reduction and better working capital management, whilst underperforming assets are being reviewed for sale.

Spanjaard Group Investor Tip

  • Although the board has voiced optimism at the prospects of the company, Spanjaard shares have had a disappointing performance on the JSE, zig-zagging up and down the live online stocks chart. Spanjaard is a small-cap share which hasn’t produced returns for investors, and there are no indications that the company will experience any dramatic growth for the foreseeable future. Spanjaard share price is unlikely to attract investor attention and the shares remain a risky buy.

Spanjaard Major Shareholders

Spanjaard Group Ltd and RJW Spanjaard.

  • Sector

    Materials

  • Industry

    Chemicals

  • Sub industry

    Basic & Diversified Chemicals

How to buy Spanjaard Group Shares

  • Spanjaard : How to buy Spanjaard Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy Spanjaard 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 Spanjaard Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase Spanjaard 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 Spanjaard Group.
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    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
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