Iliad Africa on Tuesday reported a loss of R6.59-million for the year ended December 31, compared with R33.6-million profit in 2012.

Revenue was flat, at R4.46-billion, compared with R4.49-billion for the year ended December 31, 2012.

Iliad Africa listed on the JSE in 1998, and sourced, distributed, wholesaled and retailed general and specialised building materials.

The group serviced a range of customers, including large-scale development and construction groups and do-it-yourself homeowners, through a network of 74 stores.

It operated through two divisions.

General Building Materials, responsible for 80% of the group’s revenue, marketed a range of products primarily sourced locally, selling it through the Buco chain of stores.

Specialised Building Materials (SBM) traded in differentiated and value-added products.

The good news was that the second half of the 2013 financial year proved better than the first half, said CEO Eugene Beneke on Tuesday.

This was owing to improved trading conditions, as well as the fact that the company had disposed of a number of loss-making businesses – Ferreiras, National Tile Traders, Thorpe Timber Company and Timber Preservation Services – in SBM, by August 1.

The remaining four businesses in SBM included an equipment hire operation and wholesale hardware importer.

Beneke was also pleased that Iliad Africa ended the year with net cash of R38.8-million, compared to a net overdraft of R76.9-million at the end of 2012, on the back of proceeds from the business disposals and an increased focus on working capital.

The past few years had been challenging for the building material supply industry, he added.

Looking ahead, Beneke wanted to complete the introduction of an integrated enterprise resource planning platform and IT support system, set to assist in protecting margins and streamlining the procurement process, by the middle of the year.

It was also vital to continue building Buco’s brand equity.

Beneke said Iliad Africa would look at rolling out more stores in 2014, if suitable locations could be found, while acquisitions, if suited to the group, would also be considered.

“I am cautiously optimistic about 2014. There are mixed indicators for the year. While more building plans are being approved, consumers are under increasing pressure.

“The first eight weeks since financial year-end reflected an increase in revenue of around 5.8% on that of the comparable eight weeks of 2013.”