Afrimat Capitalises From Diversified Portfolio
According to CEO Andries van Heerden, apart from the economic slow-down, political uncertainty also exacerbated the operating climate during the last quarter of 2017.
“Our product range is highly diversified and coupled with our strategic positioning and excellent service delivery, we were able to maintain, and in some instances even gain, market share,” he said.
The acquisition of Demaneng, the new name for Diro Manganese and Diro Iron Ore, added bulk commodities to the already diversified product offering and provided the group with the ability to also market and sell iron ore.
As indicated by Van Heerden, the impact of the economic slowdown strongly affected the aggregates and industrial minerals segment of the business in KwaZulu-Natal and southern Gauteng, where the concrete based products segment was impacted by difficult market conditions.
“We have purposefully set about to create a diversified group that is well positioned to capitalise on strategic initiatives,” said van Heerden.
Management foresees continued growth from the excellent asset base it has in place, expects further expansion of its range of unique products, and is positioned to ensure that turnaround initiatives of selective acquisitions do deliver, he added.
Group revenue increased by 10.3% to R2,5bn (2017: R2,2bn), with the contribution from operations declining by 13.3% to R351,8m (2017: R405,6m).
Afrimat declared a final dividend of 42 cents per share, taking the total dividend for the year to 62 cents per share.