http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 17.86Change: 0.26
R/$ = 15.85Change: 0.17
Au 1192.35 $/ozChange: -3.10
Pt 932.50 $/ozChange: -4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
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

Back
Construction|Aluminium|Environment|Health|PROJECT|Projects|Solutions|Environmental|Infrastructure
Construction|Aluminium|Environment|Health|PROJECT|Projects|Solutions|Environmental|Infrastructure
construction|aluminium|environment|health|project|projects|solutions|environmental|infrastructure
© 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

To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
 
Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 4 hours ago Steel producer Evraz Highveld Steel and Vanadium announced on Wednesday that the Department of Labour had put a “pause” to Training Layoff Scheme (TLS) payments in response to confirmation that the proposed sale of the business to International Resources Limited...
Updated 4 hours ago About 2 000 workers at LafargeHolcim's South African unit will on Thursday launch an open-ended strike over pay, a labour union said on Wednesday. "The industrial strike would encompass the entire workforce and it will be a total withdrawal of labour by our members...
Updated 5 hours ago French Economy, Industry and Digital Affairs Minister Emmanuel Macron has announced the creation of six new French tech hubs in Cape Town, San Francisco, London, Tokyo, New York and Hong Kong. “I am delighted that Cape Town has been designated as a French tech hub....
More
 
 
Recent Research Reports
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
Energy Roundup – February 2016 (PDF Report)
The February 2016 roundup covers activities across South Africa for December 2015 and January 2016 and includes details of a Government Gazette notice that confirms Cabinet’s decision to move ahead with the 9 600 MW nuclear procurement programme; State-owned power...
Energy Roundup - December 2015 (PDF Report)
The December 2015 roundup includes details of State-owned utility Eskom’s application to claw back R22.8-billion; South Africa’s ranking as an investment destination for renewable energy; and a nuclear expert’s thoughts on reactor designs for South Africa’s nuclear...
Water 2015: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2015 Report considers the aforementioned issues, not only in the South African context but also in the African and global context in terms of supply and demand, water stress and insecurity, and access to water and sanitation, besides others.
Input Sector Review: Pumps 2015 (PDF Report)
Creamer Media’s 2015 Input Sector Review on Pumps provides an overview of South Africa’s pumps industry with particular focus on pump manufacture and supply, aftermarket services, marketing strategies, local and export demand, imports, sector support, investment...
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...
 
 
 
 
 
This Week's Magazine
Power and automation company ABB is in the launch phase of its highest payload, multipurpose industrial robot, the IRB 8700. The robot has a reach of 3.5 m and can handle a payload of up to 800 kg. “When designing the IRB 8700, we emphasised reach and payload, as...
Identity and Access Management (IAM) is a critical facet of a connected security ecosystem, as controlling the confidentiality, integrity and authorisation of data access and use is key to securing new digital business channels. However, companies face several...
RORY YOUNG Managed security services provide companies with a means to actively monitor their environment and ward against threats
Data underpins digital business models, the digital economy, the Internet of Things and the fundamental changes in the ways people interact and protecting data is crucial to securing new ways of doing business, says T-Systems South Africa information and...
The City of Cape Town will issue a tender for the procurement of electric buses for its MyCiTi service, in line with the council’s commitment to lower its carbon footprint, says executive mayor Patricia de Lille. The tender, to be advertised early in February, will...
The iSimangaliso Wetland Park Authority signed a R10-million contract last month with local tailings storage facility specialists Cyclone Engineering Projects to remove about 100 000 m3 of dredge spoil obstructing the natural course of the uMfolozi river, in...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
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
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $149 Close
Subscribe Now for $149