JSE-listed Sephaku Holdings on Friday reported a loss of R2.8-million and headline losses a share of R2.36 for the year ended March 31.
These results compared favourably to the 2013 reporting period, of nine-months up to March 31, when the company incurred a loss of R16.3-million.
Sephaku also noted that its profit before tax for the year-ended March amounted to R13.4-million, with costs for Sephaku group company SepHold having been contained to R13.4-million during the year.
SepHold incurred an operating loss of R18.7-million, at a company level, while group finance charges amounted to R25.7-million, including a noncash present value adjustment by SepHold of R6.9-million on the R125-million purchase price for mixed concrete business Metier payable on December 1, 2014.
The balance of the finance charges had been incurred on the Metier acquisition debt and asset finance.
Interest income for the group amounted to R2.7-million for the financial year.
During the period under review, Metier increased its revenue by 38% year-on-year, from R414.3-million for the prior 12-month period, running from March 2012 to February 2013, to R571.5-million, with earnings before interest, tax, amortisation and depreciation up by 22% to R100-million.
The mixed concrete business, which during the financial year added another 70 m3/h plant to its portfolio, ended the period with an operating profit of R75.5-million, up 18% year-on-year.
During the year, Metier was also awarded several major construction contracts nationally, including the supply of 15 000 m3 for the Atterbury office development at Waterfall Estate, in Gauteng, Sephaku noted.
Further, as expected, Sephaku cement business SepCem incurred a R40.9-million loss for the year ended December 31, owing to the noncapital-related expenditure incurred in preparation for market entry and preparation to become a significant competitor in the wholesale and retail cement trade.
“The year was very successful as we completed the construction of the SepCem production facilities and increased our mixed concrete plant footprint in Gauteng.
“We are pleased by the market acceptance for our cement brands in both the bag and bulk markets to date. The experienced sales team at SepCem continues to increase floor-space presence in most distribution networks,” Sephaku CEO Dr Lelau Mohuba said.