Our opinion on the current state of SOH

South Ocean (SOH) operates as a manufacturer of low-voltage electrical cables and an importer of light fittings and electrical accessories. The company's primary manufacturing plant, located in Alrode, employs approximately 400 individuals. Additionally, South Ocean functions as an investment holding company with two operating subsidiaries specializing in the production of low-voltage electrical cables. It also holds property for investment purposes, including Anchor Park, a property company under its ownership.

The company has experienced fluctuations in its share price over the years, with notable highs and lows in its trading history. For instance, in December 2010, South Ocean's share price reached as high as 245c. However, persistent losses led to a significant decline in its share price, trading at around 22c, albeit on very thin volumes.

In its latest financial report for the year ending December 31, 2023, South Ocean reported a noteworthy improvement in its financial performance, with revenue increasing by 26% and headline earnings per share (HEPS) surging by 99%. The company attributed this growth to expanded distribution channels and the enlargement of its customer base.

Despite this positive momentum reflected in the share price, which has risen to 147c, it remains unsuitable for private investors due to the persistently low trading volumes. The lack of liquidity in the market makes it challenging for investors to buy and sell shares efficiently, rendering South Ocean's stock ill-suited for investment by private individuals. Therefore, it is advisable for investors to exercise caution and seek alternative investment opportunities with better liquidity and trading activity.