CEG - CAPITAL EQUIPMENT GROUP

Capital Equipment Group (CEG) is a group of companies with a strong agricultural focus which provides a formidable force in the market.





























THE CAPITAL EQUIPMENT GROUP compriseS of:
 
Northmec - Distributor of a full range of agricultural machinery, implements and related spares.

CSE - Wholesale and retail distributor of light earthmoving machinery, turf-grooming machinery, golf cars, utility vehicles and related spares.

New Holland - Wholesale distributor of agricultural machinery, implements and related spares.

Doosan SA - Suppliers of heavy earthmoving machinery for construction and mining applications.

Criterion -  Importer and distributor of leading materials handling equipment and related spares.

ESP - After-market replacement parts, ground engaging tools and undercarriage parts for earthmoving equipment.

HPE - The sole distributor of Hyundai earthmoving equipment in Southern Africa.

Landboupart - After Market Agricultural Equipment Spare Parts.

Kian Ann- After Market, Construction, Undercarriage and related spare parts.
 
Map of CEG distribution network


 

2016 Review of Operations

The Capital Equipment Group (“CEG”) management is pleased with
the performance considering the difficult trading conditions during
the trading period:

• Turnover down 3%
• Operating profit down 7% after the one-off profit of
R69 million is excluded from the prior year comparison (21% before)
• Inventory and debtors well managed - Improved stock turns
and prudent inventory procurement
• Margin management and cost containment contributed to
these good results
• Good return on working capital
• Positive cash generation
Market conditions:
• Drought – El Nino limited rain in most parts of the country,
worst drought since 1904 in certain areas
• Maize production in SA down nearly 50%
• Maize prices up 30% on yellow and 81% on white maize
• Commodity prices low – mining production down
• Reduced level of investment in infrastructure by both private
and public sectors
• Devaluation of the South African rand against the US Dollar by 23%

Demand for agricultural and construction equipment has declined but
other areas of CEG have improved despite general negative market
conditions in their respective segments, posting pleasing results.
Net operating assets increased to R2 255m (2015: R1 892m) and a
decrease of return on working capital from 25.8% to 17.5%.
The results are very pleasing and surpasses the board’s expectations
based on the current operating environment.

 

Save

An

INVESTMENT
HOLDING &
MANAGEMENT

company

Managing

ASSETS

in excess of R14 billion

Ranked in

ELITE
TOP 20

by Financial Mail

Committed to creating

LONG TERM
VALUE

for all our stakeholders

The only JSE listed
company to achieve

TOP 100
PERFORMER

for 20 consecutive years

A South African based
investment company

GOING
GLOBAL