Monday, 01 September 2008 02:00

Gale rips roof away mall

Parts of the new Mdantsane City Mall roof were blown off by strong winds on Sunday as weather experts warned of a storm approaching East London from the Western Cape.

Thursday, 14 February 2008 02:00

Growth boosts Hardware Warehouse revenue 73%

AFFORDABLE bulk building materials supplier Hardware Warehouse, which listed on AltX in September, yesterday reported a 73,5% increase in revenue to R103m for the six months to December.

Construction IndustryCEO Shaun Miller said the surge in revenue was thanks to an increase in the number of stores, as well as growth from existing stores. New stores accounted for 38% of the revenue increase, and growth from existing stores made up 30%. The company delivered an 82,8% increase in headline earnings per share, from 5,3c to 9,7c.

Hardware Warehouse’s share price surged nearly 17% to 70c by about 4pm yesterday after publication of the results.

Miller said the company, which has traded for 12 years and has its head office in East London, mainly supplied affordable bulk building materials to rural communities, home builders and “more informal builders”. He said building cost inflation of about 10% was also contributing to the bottom line.

The company operates predominantly in the Border-Kei area of Eastern Cape and has also established a branch in Mtubatuba, north of Richards Bay.

“We will be expanding a number of stores in that region and are looking for opportunities in Swaziland,” said Miller.

He said the company’s market differed from the “suburban” market, where people built when they had money and in “good times”. The “suburban” market was likely to slow because of tougher economic conditions.

But Hardware Warehouse’s market consisted of people who were building homes through necessity, as they had previously lived in informal settlements. He said previously these customers were unable to borrow money, but were now receiving finance from the banks.

 

Tuesday, 05 February 2008 02:00

Buyers go wild over Karoo land

Eastern Cape farm land is fetching record prices and then being converted into tourist resorts, game farms and even used for holiday getaways.

South Africa’s R16bn investment in next-generation pebble bed modular reactor technology does not seem to have born fruit

Friday, 11 January 2008 02:00

SA cement sales up

The 2010 Soccer World Cup stadia, some new dams and the Gautrain project should add to cement demand in the current year

Wednesday, 14 November 2007 02:00

Sanyati expects to hit forecast net profit

Civil engineering and construction group Sanyati Holdings on Tuesday said government contracts and extending operations beyond KwaZulu-Natal had boosted its order book, positioning the black economic empowerment company to achieve its forecast net profit of R53 million for the 2007-08 financial year.

Construction IndustryThe order book included a R25 million contract for civil infrastructure work in Polokwane, a R75 million road rehabilitation contract in Gamtoos, Eastern Cape, and a R1,9 billion contract for civil works on the new King Shaka International Airport in Durban.

Releasing the company’s results for the six months ended August, CEO Rick Jackson said the buoyant growth in the construction industry boded well for the firm. He said though 66% of Sanyati’s contracts came from KwaZulu-Natal, he was pleased at the inroads the company had made in Gauteng.

“The Gauteng operations are up and running with (the group’s piling subsidiary) Mega Pile’s first R2 million contract ,” said Jackson.

Gauteng accounted for 22% of Sanyati’s contracts, with the balance split among Mpumalanga, Eastern Cape and Zambia.

In an effort to grow the business , Sanyati said, it had acquired Gauteng-based Ruthcon Civil Contractors and GEM Earthworks, which has operations in Eastern Cape and Mpumalanga.

Net profit for the period under review doubled to R22,9 million on a 105% increase in revenue to R396,2 million — up from R192,5 million.

Cash generated from operations surged to R10,9 million from a loss of R4,5 million. Headline earnings per share increased to 8,74c from 5,73c.

Of Sanyati’s four business units, Civils Coastal was the biggest contributor to overall performance.

Revenue accumulated by C ivils C oastal was R215 million. Its performance was boosted by large-scale projects such as the R117 million tender to construct roads in Barberton, and the R52 million contract to construct a water pipeline in Umgeni, on the south coast.

The unit also stood to gain R190 million over the next 19 months after the Ilembe Consortium was awarded a R1,9 billion contract to build the R6,8bn King Shaka International Airport.

 

On the face of it, the R39bn oil refinery that state corporation PetroSA plans to build at the Coega industrial development zone outside Port Elizabeth will bring much-needed additional refining capacity to an industry straining to provide growing demand for liquid fuel

Monday, 15 October 2007 02:00

Great Kei faces more major legal claims

The Great Kei Municipality faces another financial shock as the developer of a proposed multi-million-rand golf estate.

Many of South Africa’s independent airports and aerodromes remain technically non-compliant and continue to lose out on increasing opportunities presented through either tourism or large events like the upcoming 2010 FIFA World CupTM

Building materials supplier Iliad Africa has bought two businesses in the Eastern Cape and Limpopo as part of its strategy to enhance its geographical footprint in the building materials market, it said on Tuesday.

The financial details of the deals were not disclosed.

Construction Industry.USM Building Supplies, which is based in the Eastern Cape, adds trading outlets in Uitenhage and Jeffry's Bay and a truss plant in Dispatch, taking the Iliad network of outlets to 104.

It has an annual turnover of more than 100 million rand.

The acquisition is subject to approval of the competition authorities and the completion of the due diligence process. One-year profit warranties are in place, the company said.

Iliad has also bought Lumber City in Lephalale (formerly Ellisras) at net asset value.

The business will be rebranded Builders Market and existing management has been retained.

"This acquisition expands our presence in Limpopo, and positions Iliad well for the considerable capital projects planned in the region," said Ralph Patmore, chief executive officer of Iliad.

Patmore said these acquisitions would accelerate the group's stated intention of achieving turnover growth of 5 billion rand in the next few years.

Iliad is currently trading under a cautionary related to an unsolicited bid for the group's equity.

Interim results for the 2007 financial year will be announced towards the end of August.

 

Page 10 of 17

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