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Johannesburg - Diversified manufacturing and technology holdings company Rolfes Technology Holdings [JSE:RLF] on Wednesday reported diluted headline earnings per share of 14.9 cents for the six months ended December 2010 from 13.8 cents a year ago. An interim dividend of 5 cents per share was declared.
The results were enhanced by the excellent performance of the Chemicals business, supported by significant growth in the resins and dispersions product groups incorporated in the Pigments business, it said.
Profit growth amounted to 7.1% to R15.3m and revenue increased by 18.2% to R228.7m, with top line growth in both the Pigments (16.5%) and the Chemicals (36.7%) businesses. Operating profit increased by 9.0% to R24.0m.
Although market conditions remained difficult, the group managed to excel and deliver on most expected targets.
Group revenue growth of 18.2% was counteracted by increased raw material prices, significant energy and to a certain extent labour costs, and lower buy-in margin business, resulting in a 3% reduction in gross profit margins.
Achievements included overhead cost reduction, a slight reduction in interest paid, reduction in group debt (including settling the final payment for the Triangle Solvent acquisition in cash) and dividends paid to shareholders from cash resources, all of which supports the group's continued strong financial position.
Overall market share was sustained, with exports growing by 43.0% if compared to December 2009, now comprising 12.4% of group turnover. Rolfes exports mainly to Europe and Africa.
Looking ahead, Rolfes noted that it has a solid reputation and positive brand perception locally and internationally and opportunities in both the local and international markets are still available.
"Regular strategy review ensures relevance and assists with maximising growth and expansion prospects. Proactive measures ensure that we remain competitive in light of fierce competition from China and India in the buoyant African market with the group consistently focussing on increasing market share and expanding the product basket. We look forward to the European economic recovery already noted in Germany," it said.
It noted that Chinese market input costs are increasing due to economic pressures experienced from labour, energy and environmental factors which bodes well for the Group's manufacturing operations in terms of exports to Europe and the rest of Africa.
"We are dedicated to growing our business through expansion of product offerings to the local and international markets as well as through the pursuit of new acquisitions in the agricultural chemicals, mining chemicals and other chemicals sectors," it said.
The results were enhanced by the excellent performance of the Chemicals business, supported by significant growth in the resins and dispersions product groups incorporated in the Pigments business, it said.
Profit growth amounted to 7.1% to R15.3m and revenue increased by 18.2% to R228.7m, with top line growth in both the Pigments (16.5%) and the Chemicals (36.7%) businesses. Operating profit increased by 9.0% to R24.0m.
Although market conditions remained difficult, the group managed to excel and deliver on most expected targets.
Group revenue growth of 18.2% was counteracted by increased raw material prices, significant energy and to a certain extent labour costs, and lower buy-in margin business, resulting in a 3% reduction in gross profit margins.
Achievements included overhead cost reduction, a slight reduction in interest paid, reduction in group debt (including settling the final payment for the Triangle Solvent acquisition in cash) and dividends paid to shareholders from cash resources, all of which supports the group's continued strong financial position.
Overall market share was sustained, with exports growing by 43.0% if compared to December 2009, now comprising 12.4% of group turnover. Rolfes exports mainly to Europe and Africa.
Looking ahead, Rolfes noted that it has a solid reputation and positive brand perception locally and internationally and opportunities in both the local and international markets are still available.
"Regular strategy review ensures relevance and assists with maximising growth and expansion prospects. Proactive measures ensure that we remain competitive in light of fierce competition from China and India in the buoyant African market with the group consistently focussing on increasing market share and expanding the product basket. We look forward to the European economic recovery already noted in Germany," it said.
It noted that Chinese market input costs are increasing due to economic pressures experienced from labour, energy and environmental factors which bodes well for the Group's manufacturing operations in terms of exports to Europe and the rest of Africa.
"We are dedicated to growing our business through expansion of product offerings to the local and international markets as well as through the pursuit of new acquisitions in the agricultural chemicals, mining chemicals and other chemicals sectors," it said.
