Iliad Africa has reported a loss of R6.59-million for the year ended December 31, compared with a 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 sources, distributes, wholesales and retails general and specialised building materials.
The group services a range of customers, including large-scale development and construc-tion groups and do-it-yourself homeowners, through a network of 74 stores.
It operates through two divisions.
General Building Materials, responsible for 80% of the group’s revenue, markets a range of products primarily sourced locally, selling it through the Buco chain of stores.
Specialised Building Materials (SBM) trades in differentiated and value-added products.
The good news is that the second half of the 2013 financial year proved better than the first half, says CEO Eugene Beneke.
This was due to improved trading conditions, as well as the fact that the company had disposed of a number of lossmaking businesses – Ferreiras, National Tile Traders, Thorpe Timber Company and Timber Preservation Services – in SBM by August 1.
The remaining four businesses in SBM include an equipment hire operation and a wholesale hardware importer.
Beneke is also pleased that Iliad Africa ended the year with net cash of R38.8-million, compared with 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 have been challenging for the building material supply industry, he adds.
Looking ahead, Beneke wants to complete the introduction of an integrated enterprise resource planning platform and IT support system by the middle of the year, set to assist in protecting margins and streamlining the procurement process.
It is also vital to continue building Buco’s brand equity.
Beneke says Iliad Africa will look at rolling out more stores in 2014, if suitable locations can be found, while acquisitions, if suited to the group, will 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 the financial year-end reflected an increase in revenue of around 5.8% on the comparable eight weeks of 2013.”