Corpbuild deal, growth boosts Iliad Africa

Posted On Wednesday, 10 March 2004 02:00 Published by eProp Commercial Property News
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CONSTRUCTION and building materials retailer Iliad Africa's earnings rose steeply in the year to December, following its acquisition of Corpbuild from Corpcapital, and amid organic growth.

Ralph-PatmoreCONSTRUCTION and building materials retailer Iliad Africa's earnings rose steeply in the year to December, following its acquisition of Corpbuild from Corpcapital, and amid organic growth.

Turnover was up 51% to R1,14bn, while trading profit rose 60% to R92,7m. Attributable earnings were up 64% to R66,5m. The group's share price rose 5,81% to close at R5,28 with 249606 shares traded in 29 deals yesterday.

Iliad Africa CEO Ralph Patmore said the acquisition of Corpbuild was a turning point for the group , as it now had institutional investors such as Old Mutual, Sanlam and RMB as well as a market capitalisation of more than R700m.

Patmore said the liquidity of the group's shares had also improved because of the deal, with the year-on-year average share trade for the period July to December more than trebling. He said the integration of Corpbuild had gone well and its management was fitting in.

The group was already feeling the strength of the added purchasing power brought about by the new acquisition. There was no change in Iliad Africa's strategy following the acquisition. Patmore said the group would still be a "highly focused supplier of building materials into niche markets".

However, the acquisition saw the creation of a fifth division focusing on wholesaling. Patmore said this division was the biggest "threat and opportunity" to Iliad Africa.

Although the wholesaling division was not making money, Patmore said Iliad Africa would work very hard at turning it around. The division was only a small part of the group, he said, and was "not something that would bring us down" if it did not work out.

The building materials division had experienced another strong year of demand, he said. Its prospects looked good as the new businesses brought expertise in doing business with government in the field of schools and clinics.

The Corpbuild acquisition meant Iliad now had building material outlets throughout SA, but Patmore said he planned to expand the group even further. The group had earmarked the coastal strip from Durban down to Cape Town for expansion. Another store would be opened in Pretoria during the year.

The group had no loans to speak of and held R69,9m in cash.

 

 

Last modified on Wednesday, 23 October 2013 19:49

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