Afrimat's strategy of diversification is delivering, says Pieter de Wit
The CFO says the group is very pleased with the positive effects of diversification.
Afrimat has released their condensed consolidated financial statements for the year ended 28 February 2019, which show “exceptional cash generation, a strong quality of earning across the group and a continued focus on astute capital allocation”.
Afrimat CFO Pieter de Wit says:
“We are very pleased with the group’s results, which is evidence that our strategy of diversification is delivering.”
He said that where the construction materials business contributed 74 percent of the group’s profit in the past year, the contribution for this year is more diverse, being made up of 40 percent construction materials, 43 percent bulk commodities and 17 percent industrial minerals.
“The business is highly cash-generative,” he said, referring to cash generated from operations, which rose 46 percent to R410 million, and in turn resulting in a strengthening of the group’s balance sheet, with the net debt to equity ratio improving from 35.5 percent to 23.8 percent.
The highlights of their results:
- Group revenue increased 24.6 percent to R3,0bn
- Tax rate increased 27.9 percent
- HEPS increased 29.6 percent to 234.1 cps
- Operating profit margin increased 15.9 percent
- NAV per share increased 15.3 percent to 1,030 cents
- Final dividend per share increased 47.6 percent to 62 cps
- Return on net operating assets increased 25.4 percent
- Net debt: equity ratio improvement from 35.5 percent to 23.8 percent