African Oxygen faces challenging year.

African Oxygen, the Silk African Lions largest holding, is putting up a great show in the face of the economic downturn. Although profits are down by 10% on the back of a decline in operating margin, revenues increased by 18%. Although we expect further deterioration towards the end off the year, on the back of commodity prices, we are happy with the groups 32% gearing and expect the stock to perform well from here.