Revenue continues to be driven by growth in the automotive refinish segment, which grew 28% when compared with the comparative period. Trading results show the impact of the group's strategy to expand its product offering into the global market and to grow its international presence, with revenue from external international customers continuing to grow by 61% when compared with the comparative period. The group reported revenue of R322.53 million (R275.73 million) with earnings per share of 9.05c (4.41c).
Dividend
In view of the fact that the group only listed in November and the board's strategy to retain capital for investment in global business growth, no dividend has been declared for this interim period. The board is, however, committed to adopt its dividend policy and target dividend cover of approximately three times subject to meeting its capital management objectives.
Prospects
Whilst the global trading environment continues to go through a period of great difficulty and uncertainty, the focus of Chemspec's business remains on growing its international automotive refinish market. The group's dynamic brands in this sector deliver comparable quality and ease-of-use when measured against the leading brands in this category. Chemspec's excellent product quality, coupled with a outstanding pricing model which is approximately 50% lower than its international competitors, means that the group is becoming an irresistible choice for the newly created value-conscious international market. New research shows that the market has moved from big brand, high cost products to value brands that offer high quality at a fair price, as can be seen by the substantial growth in our international markets. The board will, of course, be monitoring the granting of credit in these difficult times by instituting credit checks on customers and their bank. A vigilant eye on margins and minimisation of operating costs will continue in earnest and management expect further improvement in efficiencies from the new Canelands plant. Continued investment in technology and the development of the group's products is a priority along with effective brand management.
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