JSE-listed Afrimat has reported a 5.1% increase in revenue to R1.99-billion for the year ended February, while its profit after tax soared by 22.9% to R200-million.
On Thursday the open pit mining and materials company advised that, as in the prior year, the group benefited from the strong performance of its newer industrial minerals operations as well as an uptick in its traditional aggregates business.
Our theme of ‘Growth through diversification’ remains our mantra, and is clearly paying off after a concerted effort to entrench the strategy.
Our focus on a strong cash conversion ratio and on being extremely prudent with our balance sheet has also continued with obvious success,” Afrimat CEO Andries van Heerden said at the company’s results presentation in Johannesburg.
“The establishment of the Afrimat BEE Trust, together with existing BEE shareholders, amounts to 26.1% of our issued shares and demonstrates our commitment to good labour relations.”
“The country risk [we face] in South Africa we take very seriously and that is why we are looking to the rest of Africa.” As such, the company started greenfield operations in northern Mozambique last year, adding that it would continue to seek opportunities outside South Africa in the medium-term.
“We expect the current business climate to continue with moderate market growth. Our growth will remain driven by the successful execution of our proven strategy, implemented over the last five years,” he concluded.
