Opportunity in Omnia
Omnia is a diversified group that supplies chemicals and specialised services to the chemical, mining and agricultural sectors in Africa. Although the company has generally delivered good returns over the long term, recent earnings have been weak. Omnia has made considerable capital investments over the last five years, which are expected to result in meaningful […]
Still lots of room at the inn
The South African hotel landscape boasts many large, home-grown brands that have managed to remain relevant despite the arrival of several international hotel groups over the last 20 years. We discuss the South African hotel industry, its challenges and opportunities, and the outlook for two JSE-listed entities – City Lodge Hotel Group and Tsogo Sun […]
Fast fashion, if you are not first you are last
For fashion retailers, speed and flexibility are increasingly important. Instant gratification has become the norm and clothing retailers are in a race to bring the latest trends to market. As a result, traditional bulk, bi-annual ordering is being replaced by regular, small batch replenishment. We examine why the accompanying quick response manufacturing (QRM) has been […]
Sappi skids from magazines to clothing
Originally a South African forestry and paper milling company, Sappi is today a global leader in sustainable woodfibre products and solutions. Their acquisition-led global growth strategy, however, provides a sobering view of how a company can misread its market, destroying substantial shareholder value in the process. Sappi’s South African business is therefore still their biggest […]
Curro class of 2030
Every parent wants a better future for their child and most are willing to make sacrifices to achieve this, but the reality in South Africa is that very few can afford to do so. With our consistently poor scoring in global benchmarking studies, it is no secret that the South African government school system is […]
Clicks and mortar malls of the future
Retail property in developed markets benefits from healthy consumer spending power but is hugely challenged by the way online retail advancements are changing consumer behaviour. As a result, the sector has underperformed over the last few years. This is forcing shopping malls to adjust the way in which they serve customers – particularly in the […]
Retail banking is bruising for a battle
The African continent is one of the fastest growing and most profitable banking markets of any global region. Dynamic innovation, particularly within retail banking, is delivering solutions to remedy low levels of penetration and a historic reliance on cash. Advances in technology are helping to address sparse credit bureau coverage and limited branch and ATM […]
The coal conundrum
While there is no question regarding the steady need for coal supply at present, the local sector is plagued by Eskom’s procurement and debt challenges, and the export market is trying to balance the costs associated with renewable energy innovation ahead of the 2050 global warming targets. Coal is one of the largest and most […]
Evonik is special
RAG-Stiftung, a remnant of the largest coal mining conglomerate in Germany, is a foundation with the primary purpose to fund ongoing mine closure costs in the Ruhr region. The asset funding these liabilities (after many years of portfolio pruning) is RAG’s 64.3% stake in Evonik Industries. Evonik is a company that houses a portfolio of […]
