Johannesburg - The share price of Argent Industrial, a steel trading, property investment and engineering group, was ready to jump, Treve Hendry, the company`s managing director, said yesterday.
He said that this would be a consequence of the unbundling of Argent by Scharrighuisen Holdings, its parent company, which also owns Scharrig Mining.
``The market has hit us hard because we were sitting below the holding company, and I predict Argent shares will realise their true value of R2,76,`` he said.
Argent shares closed at R1,18 yesterday, down 1c.
A statement yesterday by Hendry, who is also managing director of Scharrighuisen Holdings, announced that Scharrighuisen`s board had decided to unbundle and de-list.
Argent announced yesterday a 6 percent rise in headline earnings for the year ending March 31, but has forecast a far more buoyant performance in the present financial year.
The company experienced a sluggish growth in earnings to R213,6 million, up from R210,1 million the previous year.
Attributable profits rose over the same period to R14,2 million, from R13,7 million in 1999.
Headline earnings rose to 37,8c a share, up from 35,6c.
``The first seven months of the year, especially on the steel side, were very difficult,`` said Hendry.
``The market just died but now it has turned around.``
An annual dividend of 12c a share was declared, down on 20c for 1999. The company says its previous policy of paying 20c a share ``has limited the group`s ability go grow, and it has therefore been changed to one third of the group`s earnings``.
Hendry said that the company was ``always looking`` for new acquisitions and ``there are a lot of opportunities out there``.
``Our core businesses are all doing well, and the changes made to some of our smaller companies put the group in a strong position to expand,`` he said.