Afrimat's interim earnings up 25%
Afrimat‚ which supplies industrial minerals and construction materials‚ on Thursday reported a 25.3% rise in headline earnings per share (HEPS) to 95.2c in the six months to August from the year-earlier period.
Revenue was up 15% to R1.2bn from the year-earlier period and net profit lifted 27% to R139.3m.
The company said it its results statement on Thursday that the double-digit growth in HEPS was due to strong performance in its mineral producing operations.
The company consists of a mining and aggregates division‚ which houses the recently acquired Glen Douglas and the Clinker Group‚ and a concrete-based products unit.
“This pleasing performance was further supported by improved efficiencies‚ cost reduction and the disposal of marginal businesses‚” CE Andries van Heerden said in a statement.
The small-cap company has endeared itself to investors‚ with the share price spiking from lows of about R3 in 2010 to R27 currently‚ which values the company at about R4bn.
The company reported in October that it had concluded an agreement to purchase 60% of financially distressed Northern Cape iron ore producer Diro Manganese and Diro Iron Ore from Diro Resources for R276 million.
Diro Resources had halted its operations because it was in financial distress with accumulated debt of about R483m and was placed into formal business rescue in June this year.
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