| Tue 11 Aug 2009, 9:57 | | AFT - Afrimat Limited - Afrimat sees start of turnaround |
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AFT
AFT
AFT - Afrimat Limited - Afrimat sees start of turnaround
Afrimat Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT ISIN: ZAE000086302
("Afrimat" or "the group")
AFRIMAT SEES START OF TURNAROUND
Afrimat`s performance in the year to February 2009 was impacted by slower
trade, mainly as a result of the economic downturn, but exacerbated by a
number of once-off costs. However, improvement is already evident in the
months since year-end. A concerted exercise to focus group activities on
public sector infrastructure development is beginning to yield positive
results. In addition better operating margins have been achieved due to strict
cost control and stability in materials pricing. Further, higher return on net
assets and a satisfactory cash situation have strengthened the group`s
financial position.
During the first quarter of the 2010 financial year Afrimat saw the return of
normalised profit distribution across the group, with Aggregates accounting
for 80%, Readymix 10% and Concrete Manufactured Products 10%.
This was spurred by a significantly improved performance from the Aggregates
division. The Readymix division is still marginally down overall, reflecting
the very weak market conditions in the Western Cape. However performance in
the division has been boosted by a strong showing in other parts of the
country. Concrete Manufactured Products` contribution was slightly lower year-
on-year with volumes down on the prior year. This is expected to be alleviated
going forward by a healthy project pipeline in certain parts of the country.
GEOGRAPHIC FOOTPRINT EXPANDING
Afrimat`s strategy to counter the cyclical nature of the industry by expanding
into more stable growth nodes has gained momentum over the last 12 months. The
group attempts to identify areas of high growth early on, and then establishes
a footprint in the region either via acquisition or by organically building
capacity. KwaZulu-Natal, Gauteng, Mpumalanga and Limpopo have been targeted
over the past year.
For further details visit www.afrimat.co.za - Investor Relations, July 2009
Newsletter
11 August 2009
Cape Town
Sponsor: Bridge Capital Advisors (Pty) Limited
Date: 11/08/2009 09:57:17 Produced by the JSE SENS Department.
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