Industrial equipment company Barloworld has reported a sharp increase in free cash flow for the 12 months to September 30, even as earnings declined and the company cancelled its final dividend.

The company said on November 17 that free cash flow rose 161% to R1.7-billion, up from R700-million in the previous year, while group revenue fell 10% to R37.7-billion from R41.9-billion.

The company stated that revenue – excluding its Vostochnaya (VT) business – declined by 4.7% compared with the prior year. Headline earnings per share (HEPS) dropped 21% to R8.10, down from R10.22 a year earlier, while HEPS – excluding VT – declined by 14%.

Basic earnings a share from group operations fell 24% to R7.77, compared with R10.22 in the prior year and basic earnings a share – excluding VT – decreased by 17%.

Barloworld said its earnings before interest, taxes, depreciation and amortisation margin remained at 11.7% when excluding VT. The group reported that its financial position improved, with net debt reduced by 37% to R884-million from R1.4-billion the previous year. Net asset value per share increased by 3.9% to R91.41, up from R87.98 a year before.

The company declared a total ordinary dividend of R1.20 for the year, compared with R5.20 in 2024. It announced that no final dividend would be paid, following a final dividend of R3.10 in 2024.

BOARD CHANGES

In a separate announcement, Barloworld confirmed several board changes as the company undergoes a buyout from consortium-backed Newco and subsequent delisting.

The company said that nonexecutive directors Vuyisa Nkonyeni, Bashirat Odunewu, Nomavuso Mnxasana, Nicola Chiaranda, and Peter Schmid had retired from the board with immediate effect. The company also noted that group company secretary Nomini Rapoo would retire on November 30, concluding a tenure that began in 2002.

Barloworld announced the appointment of three new board members – Haytham Zahid, Hamza Zahid and Erdi Kursunoglu – effective November 17.

“We remain indebted to the retiring board members and [Rapoo] for helping to navigate the company through a challenging transition and we wish them well in their future endeavours. Furthermore, I wish to welcome all the incoming board members and look forward to their invaluable contribution to the board," Barloworld chairperson Lulu Gwagwa said.