SKAAPTJOP - Judging by the results this AM - you did well to get out of this. GP% compression - so - Profit falling 30+% although turnover is well up. Long term liabilities keep climbing (so ROE and ROA are lurching downwards.)Cash Flow compression. Working capital requirements ballooning. Struggling to collect her book. Admits to struggling with the copper price. I think I'll forget about this company for a while. (It will be interesting to see how the market receives these results.)
Ja - wrong company (SOH) is the share code - but I agree, margin squeeze is the order of the day. It appears to be a common theme amongst manufacturers in SA. I will put it on the back burner, and when we see real evidence of an upturn in the SA construction market, this will be one to bring out again. Time value of money is an important consideration for small cap investing - timing is extremely important - I remember an article by Warren Ingram on moneyweb covering this theme some time ago.