http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.21Change: -0.03
R/$ = 10.67Change: -0.06
Au 1294.75 $/ozChange: -1.30
Pt 1439.50 $/ozChange: 1.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 28, 2012

Iliad benefiting from streamlined portfolio

Back
Engineering|Africa|Iliad Africa|Africa|Building|Building Materials|Eugene Beneke|Information Technology
Engineering|Africa||Africa|Building|||
engineering|africa-company|iliad-africa|africa|building|building-materials|eugene-beneke|information-technology
© Reuse this



Building materials provider Iliad Africa is starting to see the benefits of its portfolio adjustments over the past 18 months, CEO Eugene Beneke said on Tuesday, as the JSE-listed firm reported improved half-year financial results.

Headline earnings a share increased by 162.5% to 20.1c in the six months ended June, compared with a loss of 212.2c per share a year earlier. The comparable 2011 loss included one-off portfolio adjustment costs of R67.9-million and a R249.5-million impairment charge.

Revenue jumped 10% year-on-year to R2.18-billion in the six months, mainly owing to a strong performance by the inland and coastal regions of the general building materials division.

Beneke told Engineering News Online it was pleasing that for the second term in a row, trends were growing in a positive direction. “Iliad’s continued positive performance trend is owing to satisfactory revenue growth and the benefits gained from tough portfolio adjustment decisions made in the past eighteen months.

“With a streamlined portfolio and good progress in the implementation of key strategic initiatives, we are encouraged by performance trends,” he noted.

Beneke pointed out that another key contributor to the results, was the company’s ability to keep its expenses under control, while investing in the key strategic initiatives the company identified.

One of its key strategic focus areas was the conversion of its regional brands into a national Buco brand. “This has progressed well in the period. We are on plan and on budget, and we have converted five regions, with another to follow in the next few days,” he noted.

To date, the company has also carried out 17 conversions in the consolidation of its information technology platform.

Iliad maintained a good trading momentum amid intensified competition, but expects further growth to be gradual and dependent on economic conditions, as the market remains competitive and challenging.

“Although the passing of residential building plans shows signs of gradual recovery, the lag in the building pipeline continues to impact the industry negatively. Consumer confidence levels are slowly improving owing to the building industry showing signs of recovery, off a low base and financial institutions softening their conservative approach to funding,” the company said in a statement.

The nonresidential market and market for additions and alterations also continued to reflect challenging macroeconomic circumstances, illustrated by ongoing downtrading in the finishing end as consumers search for value against constrained disposable income.

In its specialised building materials division, the company saw improved profitability trends in the retail and wholesale subdivisions, while losses in the ceramics business were reduced. The ironmongery cluster also performed well, ensuring profitability for the retail subdivision.
 

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Construction News
Simon Freemantle
A new report by a leading South African banking group confirms that the middle class has expanded materially in 11 key sub-Saharan African countries over the past 14 years to around 15-million households, from less than 5-million in 2000. But it also cautions that by...
Egypt announced on Tuesday it had chosen a consortium that includes the Egyptian army and Bahrain-registered engineering firm Dar al-Handasah Shair and Partners to develop an industrial and logistics hub in the Suez Canal area. The Suez Canal is the fastest shipping...
Mandela Institute for Development Studies founder and director Dr Nkosana Moyo has urged African governments and the private sector to embrace a different “architecture” for economic integration, arguing that the current all-inclusive model had all but...
More
 
 
Latest News
Western Cape Minister of Economic Opportunities Alan Winde
The Western Cape Department of Agriculture on Tuesday launched a dedicated research fund, with an allocation of R3-million for the current financial year, aimed at boosting exports and bolstering land reform in relation to the province’s alternative crops....
Metropolitans have consistently underspent their public transport infrastructure grants nearly every year since 2010, Transport Minister Dipuo Peters has revealed in a Parliamentary reply. The Department of Transport’s (DoT’s) effort to roll-out quality public...
Simon Freemantle
A new report by a leading South African banking group confirms that the middle class has expanded materially in 11 key sub-Saharan African countries over the past 14 years to around 15-million households, from less than 5-million in 2000. But it also cautions that by...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 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 network, the funding and maintenance of these respective networks, and the push to move...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The Built Environment unit at the Council for Scientific and Industrial Research (CSIR) has developed a cost-competitive ultrathin concrete pavement surface that, for the upgrading of unpaved roads to paved roads, is more durable than many other pavement alternatives...
The Southern African Large Telescope (SALT), based at Sutherland in the Karoo region in the Northern Cape province, is promising to become an important instrument for research into dark matter. "SALT is shaping up to be very important for answering questions about...
HENK SNYMAN TDM supports broader industrial activity that has a multiplier-effect on the potential to beneficiate raw materials in many industries
The South African tool, die and mouldmaking (TDM) industry is being revitalised to locally produce the tools, dies, moulds and fixtures required by the manufacturing sector. Local TDM capability is key to enable the manufacturing industry to remain competitive, says...
Misfortune often finds its roots in the smallest of things. Such as a centimetre or two. Or is that in inch? Perhaps a foot? Swedish or Dutch? The French had reason to blush in May as it became apparent that national rail operator SNCF had ordered 2 000 trains that...
The repositioning of the Fibre Processing & Manufacturing Sector Education and Training Authority (FP&M Seta) and its business processes will ensure improved performance in reaching strategic targets and in providing customer service.
 
 
 
 
 
 
 
 
 
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