JSE-listed ELB Group is bedding down a business strategy over the next 12 months which will not only ensure its sustainability in the suppressed global economic climate but more importantly, will also position it for potential growth when the market sees an upturn in the next two or three years.
ELB Group’s diversified business model has cushioned it from feeling the negative impacts of the mining sector’s tail-end recession. In fact, 2014 represents a year of solid performance and satisfactory growth for the company. “It is thanks to our widespread geographic footprint, industry knowledge, expertise and integrated solutions offering, covering all aspects of the mining value chain but primarily two main business areas – mining and construction equipment and a range of engineered services – that we are able to explore and provide services across multiple platforms and sectors,” says ELB Group CE Dr Stephen Meijers.
2014: Stable and satisfactory
“The general construction and mining industries in South Africa have been under pressure and overall market size has subsequently reduced, quite substantially. This did impact on and result in a lower 2014 turnover for our equipment business ELB Equipment, but it is important to note that we did not lose any market share (compared to our competitors),” Meijers points out. “On the plus side, the past quarter has started showing signs of a turnaround and we are feeling optimistic for the future.” ELB Engineering Services contributed most significantly to the Group’s overall positive year-end results having achieved close to 70% growth figures compared to the 2013 financial year (to June). “This is thanks predominantly to the vast number of contracts and projects we undertook in the iron ore and coal sectors.”