Johannesburg - Afrimat Limited [JSE:AFT]
, a leading black empowered open pit mining company providing construction materials and industrial minerals, on Thursday reported a 17% increase in headline earnings per share to 62.6 cents for the year ended February.
The group declared a total dividend of 19c per share, an increase of 11.8% on last year.
Revenue for the year increased by 16.6% to R996.1m from R854.5m. Glen Douglas Dolomite was included for the full 12 months of the year, compared to inclusion for only two months since acquisition in the previous year's financial results.
Afrimat's key division, "Mining & Aggregates", benefited from increased volumes mainly due to its entry into industrial minerals through the Glen Douglas Dolomite mine. Volumes from the traditional aggregates market were sustained at similar levels to the previous year.
"Glen Douglas Dolomite contributed well in line with expectations and good progress has been made in terms of the turnaround strategy of the mine. The group's strategy to differentiate itself through geographic distribution and product offering proved to be a good hedge against the volatility associated with its traditional markets," the group stated.
"Concrete Products" performed well, enjoying higher volumes and steady pricing also generated by government housing projects. "Readymix" benefited from higher demand from government housing projects. However, intensifying price competition in the Western Cape, where the market is still feeling the strain of the economic slowdown, had a negative impact on the division's overall performance.
Looking ahead, the company said: "While ongoing recovery of the business environment is expected to remain slow, benefits should devolve from government's planned infrastructure spend. In addition, Afrimat should benefit further from its investment in industrial minerals through the Glen Douglas Dolomite operation and its acquisition of the Clinker Group. In light of these activities 'Mining & Aggregates' are expected to remain the dominant driver of growth in the future.
"Initiatives aimed at expanding volumes, reducing and managing costs and improving efficiencies will be a key focus in all operations during the new financial year. These initiatives, supported by ongoing product diversification in attractive growth sectors such as industrial minerals and open cast mining, should see volumes increase," the company added.