Construction products provider WG Wearne posted a total comprehensive profit of R13.4-million for the year ended February 28, a turnaround from the R17.3-million loss posted in the prior year, as group revenue increased by 16% to R463-million.

The largest contributor to the increase in turnover was the company’s ready-mix concrete division, which increased its revenue by 20% to R231-million.

The group’s aggregates division remained a consistent contributor to the group’s turnover with a 10% increase in revenue, while the precast division recorded a 44%, or R4.7-million, increase in revenue.

WG Wearne also reported a headline loss a share of 6.07c for the year under review, compared with 6.15c in 2013, and diluted earnings a share from continuing operations of 3.69c, as opposed to a loss of 6.49c for the prior year.

The net asset value a share increased to 17.91c during the year.

Meanwhile, the group's gross profit margins were maintained at around 20% even though WG Wearne had increased its market share significantly.

The company also noted that its strategy of focusing on key operational areas and monitoring of individual business units continued to drive its turnaround initiatives, with the constant monitoring having delivered improvements in almost all of the individual operating units despite high competition, adverse weather conditions and lower-than-expected government spend on infrastructure.

FUTURE
WG Wearne noted that an intensive sales drive was to be implemented in its ready-mix concrete business to gain market share, increase volumes sold and improve on gross profit margins.

Further, while the aggregates business’ margins remained under pressure, the division’s outlook was still positive as road and railway projects had materialised and government infrastructure spend, together with the improved business climate, should ensure the division’s future growth. 

WG Wearne’s concrete manufactured products division was also expected to benefit from a greater demand for concrete pipes and culverts that was occurring as more road building projects materialised. 

“Together with strategic initiatives, focus on cost reduction, increased sales, investing in employees and improved industry conditions, the group is confident that it can continue to offer the highest levels of customer satisfaction and grow within the market,” the company said.