Bell sees trading conditions improving with elections over

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Bell sees trading conditions improving with elections over
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Headwinds and the group’s investment programme have resulted in high gearing, increased inventory levels and reduced asset turnover, investors told

Bell Equipment, the family business that has existed for 62 years, expects the trading environment to improve following peaceful national elections.

In response to concerns raised by one US-based shareholder, Kerem Aksoy of Glacier Pass Partners, Bell said the difficult trading conditions, combined with the group’s investment programme, have resulted in high gearing, increased inventory levels and reduced asset turnover. On Wednesday the Bell share price was trading at R10.14, almost half the level it was trading at in May 2014.

“Economic value added is a better indicator of sustainable profit than earnings as it reveals whether or not investments are actually creating value and not just growing the balance sheet,” Logan told Business Day.

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