| Thu 4 Feb 2010, 14:11 | | AFT - Afrimat - Sustaining The Turnaround |
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AFT
AFT
AFT - Afrimat - Sustaining The Turnaround
Afrimat Limited
Incorporated in the Republic of South Africa
(Registration number: 2006/022534/06)
Share code: AFT & ISIN code: ZAE000086302
("Afrimat" or "the group")
SUSTAINING THE TURNAROUND
As announced on 5 November 2009 ("the interim results announcement"), Afrimat
reported an improved performance for the six months ended 31 August 2009
compared to the same period in 2008. The directors are pleased to report that
the group`s stronger performance has been sustained into the third quarter of
the financial year ending 28 February 2010.
The segmental profit distribution of Afrimat`s three business units -
Aggregates, Readymix and Concrete Manufactured Products - remains normalised and
consistent with the first half of the year at approximately 80%, 10% and 10%,
respectively. The severely depressed market conditions in the Western Cape that
negatively impacted Readymix during the first half of the year showed the first
signs of improvement, albeit marginal, in the third quarter adding impetus to
the division`s growth prospects.
Afrimat`s growth strategy and focus on enhanced operational performance and
return on capital investment, as well as tighter working capital control,
continue to realise benefit for the group despite a tough and challenging
market. The strategic decision to shift intense focus more to infrastructure
development has also yielded a positive result for the group.
STRIDES IN BEE
As announced on 31 August 2009 the Afrimat BEE Trust has acquired an additional
15,8% of Afrimat`s ordinary share capital to escalate direct black ownership in
the group to 26,1% ahead of Mining Charter Requirements for 2014.
The BEE Scheme administered by the Afrimat BEE Trust has laid the foundation for
the continued advancement of black ownership and is further testimony to the
group`s commitment to real and tangible transformation that rewards, in
particular, the efforts of its loyal staff and management.
NOTICE OF GENERAL MEETING
A circular was distributed to shareholders on 4 February 2010 detailing the
principal amendments to the trust deeds of the Afrimat BEE Trust and the Afrimat
Share Incentive Trust ("the circular"), which have facilitated the improvement
in Afrimat`s BEE credentials while also ensuring compliance with new JSE
regulations. The circular incorporates a notice of general meeting to be held at
The Cedar Conference Room, Poplars Restaurant, Race Course Road, Durbanville at
14:00 on Wednesday, 24 February 2010.
Johannesburg
4 February 2010
Corporate Advisor and Sponsor: Bridge Capital Advisors (Pty) Limited
Legal Advisor: Cliffe Dekker Hofmeyr Incorporated
Date: 04/02/2010 14:11:03 Produced by the JSE SENS Department.
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