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Weizmann


Weizmann operates in the textile and financial services segments.

The company undertook a restructuring exercise in the last two years, spinning off its power and foreign exchange businesses – hence, current financial position and performance is not directly comparable to the prior year.  

The company reported marginal losses after depreciation in the six months ended 30th September but operated with a moderate debt load.

The company also has several other associates operating in the power sector.

The company processes textile fabrics on a job work basis.  Management stated that their focus will on textiles, which exports to Europe/US and now to Africa via its Malawi operation.  This segment had grown 11.5% per annum in the recent past.  The financial services business, however, employs about 75% of net assets.

The textile business faces intensive competition from neighbouring textile processing countries such as Bangladesh and Sri Lanka.  Its African operations suffer from slow realisations at the moment. It is also subject to government policies on taxation, export benefits, interest relief etc.

Management appear to have a lack of focus by still operating two unrelated businesses.

It ought to be noted that 25% of consolidated net assets are unaudited and hence, require an extra pinch of salt during analysis.

Management haven’t provided any meaningful detail on the financial services business or even the assets on the balance sheet.  Most of this appears to be comprised of substantial loans and advances to group power companies – with no details to assess profitability or recoverability.

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