JSE-listed Iliad has agreed to sell its ceramics business Ferreiras as a going concern to Portion 140 Springs Properties for R49.64-million.
“The strategy developed after reviewing Iliad’s business in the midst of the macro financial crisis has been steadily unfolding, underscoring the company’s evolution towards sustainable growth. We have said that we would continue to review the portfolio, aiming for the optimal mix of products and services to meet and anticipate market demand,” Iliad CEO Eugene Beneke said.
He added that the group had experienced a number of years of significant slowdown in the building and construction industry, along with downtrading by consumers.
“Ferreiras, which has been in a loss-making situation, represents 3% of the group’s turnover. Although the quantum of losses had started to reduce in recent years, the business had not yet returned to profitability and this trend has now reversed resulting in our decision to exit the ceramics business and to concentrate on our more profitable clusters,” Beneke stated.
Iliad further indicated that the transaction would have no material impact on its earnings or assets and that the proceeds of the transaction would be used to fund its working capital requirements and future growth.