Afrimat records higher earnings, works to turn around latest acquisition

9th May 2013

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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JSE-listed Afrimat aimed to focus its efforts on what CEO Andries van Heerden commented was the company’s largest, most challenging turnaround project to date.

The construction materials supplier, which reported solid financial results for the year ended February 28, would, over the next two to three years, optimise and turn around the underperforming resources group Infrasors.

Afrimat bought a 50.7% stake in Infrasors from Hanchurch Asset Management and retiring Infrasors management for 35c a share, or R32-million, effectively taking control on March 1.

JSE-listed Infrasors’ mining interests include the Lyttelton Centurion dolomite mine, the Marble Hall limestone mine and the Delf alluvial silica sand operation, and complemented Afrimat’s 2011 acquisition of Glen Douglas.

The Afrimat team would work on, besides others, Infrasors’ operational efficiencies, marketing, product pricing, financial performance and shifting the culture of the new addition to one of teamwork.

The parent company appointed an integration manager to oversee all the operations and introduce the “Afrimat way, culture and values” into the new firm, which Van Heerden noted was “going through a tough time”.

Van Heerden and Afrimat FD Hendrik Verreynne joined the Infrasors board as nonexecutive directors.

Meanwhile, the group reported a 34.5% jump in revenue and 14.1% rise in profit for the 2013 financial year.

Van Heerden said Afrimat achieved revenue of R1.33-billion during the year, up from R996.1-million in the prior year.

Profit rose to R103.7-million in 2013, compared with the R90.9-million recorded in the year before, while headline earnings were 22.8% higher at 76.9c during the year under review.

Afrimat declared a 28c dividend for the year.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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