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ILA
ILA
Iliad - Media Release - Audited results for the year ended 31 December 2006
ILIAD AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1997/011938/06)
Share code: ILA & ISIN: ZAE000015038
6 March 2006
Media Release
ILIAD AFRICA EARNINGS UP 24%
Iliad Africa Limited, the JSE-listed holding company of leading branded stores
in the building materials supply market, has announced a 24% increase in
earnings per share and a 33% increase in dividends.
This is Iliad"s eighth consecutive year of growth in earnings. Turnover rose 25%
to R2.7 billion during the period (2004: R2.1 billion), producing earnings of
R161 million (2004: R127 million) on the back of 5% inflation. Earnings per
share for the year increased to 111.1 cents (2004: 89.6 cents).
Ralph Patmore, chief executive officer of Iliad, says, "Operating profit to
turnover was maintained at a credible 8.2%, reflecting how fast the benefits of
group synergies and purchasing power filter into new acquisitions." During the
year, Iliad concluded six acquisitions at a cost of R135 million and expanded
its geographic presence in South Africa to 81 stores throughout all nine
provinces.
Patmore says the working capital to sales ratio of 7% reflects the high level of
operational focus that permeates throughout the group even during times of
significant expansion.
The effective tax rate increased to 29% (2004: 28%) due mainly to the effects of
secondary tax on companies.
The group continues to be a strong generator of cash. Cash and cash equivalents
at year end were R192.6 million, following strategic internally-funded
acquisitions of R135 million and the new store roll outs.
Iliad was placed third in the Sunday Times Business Times Top 100 survey in
2005, against considerably larger and more established companies. Through
focused divisions, the group sources, distributes and retails building
materials, hardware, ceramic tiles and sanitaryware, bathroom fittings,
ironmongery, lighting, finished wood products and related accessories. A range
of customers, from large-scale companies and developers to do-it-yourself
homeowners, are serviced through 81 branded stores, each concentrating on an
identified customer-focused market niche.
Commenting on the housing market, Patmore says, "As predicted, the residential
market grew at a slower rate. Strong growth was recorded in the middle-income
market, static growth in the luxury end and increasing activity in the lower end
of the market. The additions and alterations market continues to grow unabated."
Patmore believes the residential market is driven by confidence and
affordability. "Both, although still at high levels, are showing signs of a
downward trend in the statistics produced by The Medium Term Forecasting
Associates. The relief granted in the national budget may extend the
affordability cycle. In contrast, the non-residential market has continued its
growth off a low base, buoyed by a continued shortage of warehouse/industrial
space, the rapid development of office space and heightened activity in retail
developments. We expect a rapid increase in the non residential activity levels
in the new financial year. This is largely expected to counter the slowdown in
the luxury residential market."
"Iliad"s solid operating results reflect continued demand in the marketplace and
the benefits of expanding our presence in key sectors and geographic areas in
the building supplies market. Through a controlled level of acquisition, we
expanded our geographic presence in the building materials and boards sectors
and entered the plumbing and lighting segments. This gives Iliad a presence in
seven of its initially-identified niche sectors."
Operationally, Patmore says Iliad"s building materials, ceramics, boards and
plumbing divisions performed well from a profit and working capital perspective.
"The wholesale division broke even for the year, reflecting the costs of
internal restructuring for greater operational efficiencies and the integration
of Cachet International."
In line with the group"s stated strategic intent of controlled expansion, and
owner-manager culture, several acquisitions were made during the second half of
the year:
* D&A Timbers (Port Alfred) provided additional geographic coverage to the
building materials division along with experienced management
* Chipbase strengthened the boards division, bringing established niche
operations and experienced management in the value-adding segment of the market.
* Q Lite, an established specialist lighting company in KwaZulu-Natal, gives the
group a platform business from which to grow in the lighting segment.
Patmore says Iliad"s acquisitions in the first six months of the year and the
previous financial year have been successfully integrated and are all exceeding
expected results. "In addition, the building materials division began its
programme of rolling out cash-and-carry outlets under the Building Centre brand
with stores in Burgersfort, Jane Furse and Brits. A further six stores are
planned for 2006." Post year end, two acquisitions were made in the plumbing and
wholesale segments respectively.
Commenting on prospects, Patmore says, "Iliad will continue to deliver on its
stated expansion and segmentation strategy. We expect the pace of growth in the
marketplace to moderate. However through prudent acquisition, successful
integration and a growing geographical presence, the Iliad group is
exceptionally well positioned to continue capitalising on the numerous
opportunities identified in its markets and to produce sustainable long-term
shareholder value."
ENDS
PREPARED ON BEHALF OF ILIAD BY CATHY FINDLEY PUBLIC RELATIONS ON (011) 463-6372
OR EMAIL CATHY@FINDLEYPR.CO.ZA
EDITORS NOTE:
Iliad Africa is a listed company focusing on the sourcing, distributing and
retailing of a comprehensive range of building materials including:
* Roof trusses, cement, doors, windows, bricks and related products - BUILDING
MATERIALS DIVISION
Brands include Ferreira"s Buildware, D& A Timbers, etc.
* Tools, hardware, ironmongery, keys, locks and accessories to resellers -
WHOLESALE DIVISION
Brands include The Knob & Knocker, B& B Locksmith Distributors etc.
*An exclusive range of local and imported sanitaryware, bathroom furniture and
accessories - CERAMICS DIVISION
Brands include Ferreiras Decor World, Just Tiles, The Tile Depot
* A range of chipboard, melamine board, shutter board, hardboard and formica -
BOARDS DIVISION
Brands include Citiwood
* Door knobs, handles, locks, access control and ironmongery - IRONMONGERY
Brands include Bildware, Buchel Design Hardware etc.
* Specialist lighting ranges and related products for residential, architectural
and alterations markets
LIGHTING DIVISION
Brand includes Q Lite
Customers range from large scale companies and developers to do it yourself
homeowners.
Date: 06/03/2006 01:01:03 PM Produced by the JSE SENS Department
