Projects put Afrimat on road to higher earnings

Posted On Thursday, 22 April 2010 02:00 Published by eProp Commercial News
Rate this item
(0 votes)

Construction materials supplier Afrimat expects earnings and headline earnings per share to be 20%-30% higher for the year to February as a result of lower costs.

Andries van HeerdenCONSTRUCTION materials supplier Afrimat expects earnings and headline earnings per share to be 20%-30% higher for the year to February as a result of lower costs and its involvement in infrastructure projects.

CEO Andries van Heerden said yesterday the company was benefiting from the government’s infrastructure projects, especially the building of power stations, roads and new water systems.

“We are also involved in the building of low-cost houses. Our order book is looking good because of road projects in Mpumalanga and Gauteng,” he said.

Afrimat’s strategy has been to focus on product diversification and enter synergistic industries to position itself for the period after the infrastructure programme.

The diversification is also intended to prepare for an upturn in the residential property market.

Van Heerden said the group was looking at greenfields developments, industry consolidation and the continuous improvement of product quality for growth.

It also planned to expand its geographical footprint in Africa.

“Our Namibian business is doing well but the focus for now is still locally because there is enough work to do,” he said.

“The plan is to ready the group for the recovery of the residential property market in the next two to three years. We want to build enough capacity so that when the residential property market recovers we can take advantage of it and benefit,” he said.

Van Heerden said the group was working on introducing new materials into the building sector as part of its diversification.

He said the group was focusing on government infrastructure spending in the building of the Medupi power station, and was supplying structural concrete and various other aggregates, which are construction materials that include sand, gravel, crushed stone, slag, or recycled crushed concrete.

Afrimat was also supplying aggregates for the Kusile power station project.

It was working on road contracts for Gauteng freeways, which also involved supplying aggregates.

The company is one of the three largest suppliers in the local aggregates industry.

Van Heerden said that the group’s geographic expansion programme had gained traction in the past 12 months.

Afrimat was supplying concrete blocks and ready-mix concrete to low-cost housing projects in the Free State and KwaZulu-Natal.

 

Last modified on Thursday, 03 October 2013 16:54

Most Popular

Thavhani City set for more growth in 2021 as its Motor City and medical developments accelerate

Feb 15, 2021
Thavhani_City_Locality_Layout
Thavhani City mixed-use urban precinct in Thohoyandou, designed to be the future economic…

It’s cheaper to buy than to rent a home in 2021

Feb 08, 2021
Carl_Coetzee_BetterBond_CEO
If the past year has taught us anything, it is how important our homes have become to us.

Brand new residential development in La Lucia 60% sold through Pam Golding Properties

Feb 15, 2021
Kent_Exterior
Such is the consistent high demand for centrally located, well-priced residential…

Optimistic budget masks a number of key risks

Feb 25, 2021
Maarten_Ackerman_Chief_Economist_and_Advisory_Citadel
Finance Minister Tito Mboweni’s budget has been received very positively, as demonstrated…

Relief at no increase in personal tax, says Dr Andrew Golding

Feb 25, 2021
Andrew_Golding_Golding_PropertyGroup
Relief at no increase in personal tax, says Dr Andrew Golding, chief executive of the Pam…

Please publish modules in offcanvas position.