Invicta Holdings writedowns exceed market capitalisation

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Group wrote down R1.1bn in assets in its year to end-March, including R639m related to goodwill

Christo Wiese’s industrial holding company, Invicta, swung into a loss in its year to end-March after writedowns exceeded its market capitalisation.

The group swung into a R673m loss after the impairments, from R229m in profit previously, due to Covid-19 uncertainty and deteriorating market conditions.CEO Steven Joffe said on Monday that though the group only lost three trading days due to the pandemic, trading conditions are “exceptionally difficult”, with load-shedding and drought conditions also weighing on the industry.

Joffe, who was appointed in January, said the group is focused on improving cash generation, reducing inventories, and selling noncore properties.

 

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