R/€ = 15.23Change: 0.02
R/$ = 13.52Change: 0.03
Au 1148.42 $/ozChange: 1.97
Pt 938.50 $/ozChange: 4.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Feb 23, 2012

Accéntuate sets R1bn turnover target

© Reuse this

If Accéntuate wanted to justify the costs of being a listed company, it would have to grow, said CEO Fred Platt on Thursday.

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.

The group reported net profit of R5.2-million for the period, compared with a loss of R30.3-million for the previous comparable six months.

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%.

The division now contributed around 74% of group revenue.

Platt said Accentuate’s turnaround was also assisted by stemming the cash hemorrhage from loss-making subsidiary Centurion Glass and Aluminium (CGA), which was disposed of in September last year for R9.5-million.

Accentuate acquired CGA, which manufactures and installs purpose-made aluminium windows for the construction industry, in 2007, but the business failed to live up to its earnings expectations.

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.

Revenue from this division was up 21.5% over the previous comparable period, to R36-million.

Platt said the improvement was owing to increased annuity income for the division, an uptick in project work and an improved ability to cross-sell additional projects into FloorworX.

“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.

He also noted that the company continued to operate in a lacklustre macroeconomic environment.

The construction sector remained depressed with no meaningful upturn in private project-driven construction activity and only sporadic public sector infrastructure spending.

Platt said while he was encouraged by government’s renewed commitment to infrastructure spending, as noted in President Jacob Zuma’s State of the Nation address, the lack of capacity at provincial and local government level was still impeding infrastructure delivery.

However, he said FloorworX had noticed a recent acceleration in infrastructure spending on classrooms, as well as hospitals, clinics and residences for the Department of Health, which augured well for the future.

“Even a limited increase in spending in these areas has a significant impact on the performance of FloorworX and Accentuate.”

While the second half of the financial year was likely to remain challenging, Platt said he was confident that the dominant position held by the group in the markets it operated in would ensure that it would “continue to deliver acceptable results for the full 2012 financial year”.


Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
Other Construction Materials News
Major equipment at Sephaku Holdings’ Aganang integrated plant is performing above guaranteed levels, with performance tests at the plant having been successfully concluded in July. The company on Wednesday also reported that its Sephaku Cement (SepCem) operations had...
Lack of major national projects and large commercial infrastructure projects saw Lafarge Cement Zimbabwe Limited report reduced revenues for the half year ended 30 June 2015. Lafarge, whose biggest competitor is JSE listed Pretoria Portland Cement, reported a 9.71%...
The Bargaining Council for the Civil Engineering Industry (BCCEI) has been accredited by the Commission for Conciliation, Mediation and Arbitration (CCMA) to handle all civil engineering sector disputes. This would mean that companies that were not members of the...
Latest News
The Worldwide Fund for Nature (WWF) has called on governments to introduce legislation that puts a stop to the construction of new coal plants, stating that coal consumption needed to be phased out completely by 2050, or earlier. The international nongovernmental...
The International Monetary Fund (IMF) has again lowered its growth outlook for South Africa for 2015, projecting in its October World Economic Outlook (WEO) that the economy would expand by only 1.4% this year and 1.3% in 2016. The forecasts represent a 0.6 and a 0.8...
Minister Thulas Nxesi
There are still many opportunities for South Africa’s black high school learners to find jobs in future, both in the public and private sectors, provided that the learners apply discipline and commitment to study, Public Works Minister Thulas Nxesi said on Tuesday....
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Sphere Holdings CEO Itumeleng Kgaboesele
Black-owned investment holding company Sphere Holdings plans to raise a further R1-billion in the coming months in support of its strategy to become a leading black industrial enterprise, which could ultimately seek a listing on the JSE.
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme.   LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96