Invicta CEO on debt stabilisation, navigating COVID-19 shocks

Stephen Joffe, CEO of Invicta, recently sat down with CNBC Africa to discuss the company's interim numbers and strategic moves amidst the challenges brought on by the COVID-19 pandemic. Joffe highlighted the efforts made to bring down the company's debt during the period under review. Despite facing headwinds, especially with the impact of COVID-19, Invicta managed to reduce its debt by approximately 261 million. However, the CEO mentioned that the company had to navigate through the complexities caused by Iberis 16, which had a significant impact on the financial numbers. To further stabilize the debt, Invicta announced the sale of four businesses, expected to bring in around 600 million. Joffe outlined the conditions that needed to be met for the sale to proceed, including competition commission approvals and supplier agreements. The CEO anticipated the closing of the deal towards the end of the year, with payments scheduled for January to March of the following year. Looking ahead, Joffe shared the exciting news that BMG, the company's largest business, would be going online by September. This move marks a significant shift in the company's operations as customers will now have the opportunity to purchase products online. Joffe expressed confidence in the development of an industrial website that could potentially be one of the best in the world, enhancing user experience and accessibility. Furthermore, the CEO mentioned plans to explore opportunities for geographical expansion and potential stake increases in certain factories, such as the roller manufacturing plant in China. When questioned about the possibility of dividends, Joffe advised caution for the current year due to the ongoing impact of COVID-19 but remained optimistic about resuming dividend payments in the following year. Amid the changing business landscape due to the pandemic, Joffe addressed concerns about job losses resulting from increased digitization within the company. He acknowledged the challenging decision to implement a 'no work, no pay' policy during the initial stages of the pandemic when business operations were severely impacted. Despite efforts to support employees by offering leave options, some individuals did not return to work, leading to a replacement process in certain African businesses. While Joffe mentioned that there were opportunities for digitization within the company, he emphasized the unavoidable consequences of job losses in certain areas. Ultimately, Invicta's strategic focus on debt stabilisation, online expansion, and cautious growth plans positions the company for resilience and future success amidst the uncertainties brought by the ongoing global crisis.