Feb 23, 2012
Accéntuate sets R1bn turnover targetBack
Accentuate|Chemicals|Fred Platt|Jacob Zuma
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Announcing the company’s results for the six-month period ended December 31, he said the flooring infrastructure and chemicals group would look to increase in size through carefully selected acquistions, as well as organic growth.
However, Platt said growing from the current yearly revenue base of between R250-million and R300-million to R1-billion, meant there was “be a limitation, realistically, as to how far organic growth can take the company”.
Accéntuate returned to profitability in the six months ended December, following significant losses for the year ended June 2011.
Turnover was up 12.2% to R143-million and headline earnings a share up 99% to 6.86c a share.
Around 65% of group turnover came from government sources, with Limpopo, currently under national government administration, a problem client in terms of slow payment, or contracts being placed on hold.
Accentuate’s six-month performance was boosted by an “exceptional result” from the flooring division, FloorworX, said Platt, even if this business operated in what he described as a “generally depressed” market.
FloorworX’s revenue for the period was up around 10% to R106-million. FloorworX’s margin was up too – from 5% to 8%.
Accentuate had subsequently instituted legal proceedings against the vendors of the business for breach of their warranties.
The group's Environmental Solutions division also turned in an improved performance for the six months ended December 31.
“We are confident that with the disposal of CGA and a renewed focus of our core competencies, Accentuate can now put the difficulties experienced behind it and focus on an exciting new purpose and direction for the company."
Platt emphasised that any growth or acquisition would be limited to the company’s core competencies.
“Even a limited increase in spending in these areas has a significant impact on the performance of FloorworX and Accentuate.”
Edited by: Creamer Media Reporter© Reuse this Comment Guidelines
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