WG Wearne to list on AltX

Posted On Tuesday, 24 January 2006 02:00 Published by
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SA is set to see the first listing in the construction sector in several years

John WearneSA is set to see the first listing in the construction sector in several years following building materials supplier WG Wearne's announcement on Monday that it would list on AltX next month.

The move underscores the bullish outlook for growth in the domestic construction sector and is welcome news in the wake of Waco International's decision not to list.

Family owned WG Wearne, which produces readymix concrete and aggregates such as sand and stone, expects to report R188 million in revenue and R20,6 million in pretax profit for its financial year ending next month.

The almost 100-year-old company needs funding to expand its production facilities, which have become grossly inadequate to meet rapidly growing demand for the company's products.

The company was sourcing up to 50% of demand for some of its products from other suppliers, it said.

CEO John Wearne, who is a fourth-generation Wearne in the company, said yesterday that demand for the company's products was almost parallel to that for cement, which had grown to record highs recently.

WG Wearne was also planning to expand its geographic activities, comprising quarries and crushing plants mainly in northern parts of SA, through acquisitions.

John Wearne expected consolidation in the industry as empowerment requirements tightened.

Several companies in the construction industry were family owned and older people in particular might find it hard to comply, providing takeover opportunities, he said.

WG Wearne already has 16% black shareholding, rendering it compliant with the mining charter, which stipulates that companies must have a 15% empowerment shareholding in the first five years of the charter and 26% in 10 years.

The company's listing, scheduled for February 21, would also incorporate an employee share scheme, which was expected to strengthen its empowerment profile.

Wearne said the company would look to use the bulk of the R25 million it hoped to raise in a private placement to expand production facilities.

He said his family would retain about 60% of the company.

The CEO said the aim ultimately was to list on the JSE.

Last modified on Saturday, 19 October 2013 03:25

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