Last Updated: 20 November 2013 13:00
Sephaku Holdings Limited has managed to benefit from its purchase of Métier Mixed Concrete, resulting in an increase in operating profits.
A construction worker standing over bags of cement additive. PHOTO: Getty Images
The group reported an operating profit of 33.8 million rand for the period ended 30 September 2013. This is compared to an operating loss of 10.1 million rand in 2012.
The group also reported 40.3 million rand in earnings before interest, taxation, depreciation and amortisation (EBITDA). This is in contrast to the loss before interest, taxation, depreciation and amortisation of 9.8 million rand in 2012.
Sephaku Holdings group is a construction materials company based in South Africa. Sephaku Cement and Métier are the core investments of the holdings company.
“I am pleased with the results indicating our initial reporting period of positive earnings and revenue as a result of the strategic acquisition of Métier,” Sephaku Holdings CEO Lelau Mohuba said in a statement.
“The group achieved revenue of 301.6 million rand from no revenue for the comparative period in 2012. Métier is set to expand its market share in the lucrative Gauteng province in the next 12 to 18 months.”
In February 2013 the group acquired 100 per cent of Métier Mixed Concrete. Métier’s product offering includes high value concretes such as fibre reinforced, coloured, polished and durability concretes.
Métier achieved an EBITDA of 55.1 million rand and earnings before interest and taxation of 43.7 million rand, resulting in an overall profit for the group.
Headline earnings per share for the group were reported at 2.78 cents from a headline loss per share of 5.69 cents for 2012.
Earnings were also recorded at 6.3 million rand, compared to the loss of R9.8 million rand in the previous year.
The group’s Sephaku Cement operation however had a loss of 15.8 million rand for the six-month period January to June 2013, of which R5.7 million rand, or 36 per cent, was equity accounted for in the group results. The group is however optimistic about its associate company.
“The significant construction progress at our associate company Sephaku Cement’s plants has firmly positioned the company as a new entrant into the cement manufacturing industry in South Africa since 1934.”