| Mon 29 Apr 2002, 0:00 | | Bridgestone Firestone Maxiprest Limited - Maxipres |
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Bridgestone Firestone Maxiprest Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/006456/06)
Share code: BDS ISIN: ZAE000027447
("Bridgestone Firestone Maxiprest")
MAXIPREST SHARES PLACED IN STRONG HANDS
JOHANNESBURG - JSE-listed tyre distributor, retreader and tyre management
services provider, Bridgestone Firestone Maxiprest Limited today announced
that the equity interest held until now by the ex-founders of the group has
been placed with management and financial institutions.
"With the company's roots dating back to the 60's, the founders experienced
every transformation as their investment grew to become South Africa's
predominant truck, bus and off-the-road retreader; new tyre distributor; and
tyre management solutions provider," says managing director: finance of
Bridgestone Firestone Maxiprest Ltd, Mike Davison.
"The founders have established through entrepreneurship and innovation a
solid platform for the company's growth. With South African vehicle
ownership lagging the more developed markets, there is still scope to
position Maxiprest, together with its strategic investor Bridgestone
Firestone South Africa, as the leading company in every market in which we
participate," states Davison.
"At the time of listing in October 1997, approximately 2,5% of Maxiprest's
earnings were made up by the export of new tyres. Our share of the local
tyre market stood then at 13%. Our objective was to grow our new tyre market
and retreading over five years by more than 25%. Bridgestone Firestone
Maxiprest has met and exceeded these goalposts. Our number of service and
distribution outlets increased from 57 to 98 across the whole of Southern
Africa. Exports now comprise 10% of our annual turnover, which improved
strongly from R454 million in February 1998 to the R1,1 billion reported in
December 2001."
The company supplies more than 4 000 tons precured tread per year to the
market and currently maintains an approximate 35% share of the new tyre
sales market.
The 18,8 million ordinary shares that were disposed of by the previous
owners on Friday, 26 April 2002 were taken up via a book over by a
consortium of financial institutions and management, lead by Hampton
Securities.
"Listed initially at 200 cents, the institutions have seized the opportunity
to invest in a consistent track record and dividend policy at an attractive
entry price. At the current 5.4 P/E; a dividend yield of 6.4; and growing
e.p.s. from 20 cents per share in 1998 to 32 cents as reported at December
2001 year end, owning a share in Bridgestone Firestone Maxiprest is an
imperative", Davison concludes.
The Group reported a 13,9% increase in attributable earnings at its December
2001 year end. It is expected that the company will announce its interim
results early in August.
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END
For more information, please contact:
Mr ME Davison
Managing Director: Finance
Maxiprest Ltd
Tel: (011) 488-2255
Fax: (011) 488-2266
Email: info@maxiprest.co.za
Editor's note:
BF Maxiprest Ltd is listed under the JSE Industrial - Transport sector, and
is styled "BRIDGESTN". Maxiprest Tyres is southern Africa's predominant
Truck, Bus and Off-The-Road retreader and new tyre distributor. The Group is
vertically integrated, encompassing all aspects of the tyre industry - from
the manufacture of precured tread and bonding material, to the supply of
retreaded and new tyres to commerce and industry, and to professional fleet
operators under cpk leasing contracts.
Through its wholly owned subsidiaries, trading as Maxiprest Tyres, the Group
is represented through 98 retail outlets and 22 retread factories across the
subcontinent - also enabling support for the 24 hour transporter tyre
breakdown service.
