Shares in Afrimat (AFT) surged as much as 7.38% to an intraday high of R16 on Wednesday after the construction materials company posted a strong trading update in late Tuesday trade.
Afrimat expects its headline earnings to jump by between 40% and 45% for the year ended February 2014 — which included Infrasors Holdings’ results for the first time.
Afrimat’s share price has also more than doubled since the start of 2013. Meanwhile‚ the JSE’s construction and building materials index — of which Afrimat is a constituent — has fallen almost 9% over the same period.
Mr Clark said Afrimat’s past three acquisitions had been earnings drivers for the company. These include Glen Douglas‚ Clinker Group and Infrasors. Afrimat was also shifting away from being a core aggregates business to “a value-added industrial materials business”.
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