SepHold invests in building materials-focused businesses to create value for shareholders. The group has invested in significant new capacity in the cement and mixed concrete production in South Africa. It is well positioned to generate earnings growth from opportunities in these sectors, which are key contributors to infrastructure development. By actively participating in operations, SepHold ensures it generates positive earnings and maintains sales volumes. The group’s subsidiary, Métier Mixed Concrete (Métier) and associate Dangote Cement South Africa (CEMENT) have a unique set of competitive advantages that facilitate sustainable long-term growth.
The group expects the trading environment for building materials to remain challenging in the short to medium term. Although, the competitive landscape has stabilised with price recovery expected to continue for cement, demand is anticipated to remain flat in the medium term due to political uncertainty. CEMENT will focus on achieving sustainable price increase, and operational efficiencies to ensure robust results in this uncertain environment.
Métier will continue to evaluate ring-fenced opportunities on specific projects in which value can be created and, focus on optimizing current plant and equipment. Following the reshaping of CEMENT’s loan project, and Métier’s drive to reduce debt, the companies will pay particular attention to working capital management and on improving balance sheet strength to remain compliant to their debt covenants.
Following the reshaping of the CEMENT project loan and Métier’s drive to reduce debt, the companies will pay particular attention to working capital management and on improving balance sheet strength to remain compliant to their debt covenants.