Aspen HY - Good Margin Expansion

Yesterday, Aspen reported really good half-year numbers. They delivered a 10% increase in revenue and a 37% rise in profits thanks to good margin expansion. The company made R7.77 per share for the six months. The strong organic growth in the business is very encouraging; these numbers were not aided by a once-off bump from vaccine sales.

In 2018 Aspen had debt of R54 billion which nearly forced the company into a rights issue, which would have significantly diluted existing shareholders. That was avoided, and management has done brilliantly to bring those debt levels down to just R19 billion today.

Aspen is a very well-run business with founder Stephen Saad still at the helm. He seems to be full of energy and enjoying himself. The team will have learned a lot from their woes of a few years back. We are still happy holders of this one in our local portfolios.