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In line with group policy no dividend has been declared for the period. Revenue was up 53% to R539m, while headline earnings grew 51% to R39m and gross profit increased by 61% to R170.7m.
The group said it had shown excellent growth despite the fact that trading conditions were a lot more challenging in the second part of the year due to high rainfalls and the rising interest rate environment.
Unscheduled load shedding by Eskom in January also caused severe disruptions to operations. The board has approved additional capital expenditure of R10m to ensure that there is uninterrupted power supply to all operations.
The acquisition of the Willowsfountain Quarry in Pietermaritzburg has still not been completed due to the fact that a new mining lease with the property owners has not been concluded. Shareholders will be informed of any new developments, it said.
The group's Aggregate division's turnover more than doubled due to the acquisition of the De Bruyn Sand business as well as the Tzaneen quarry. The group also acquired three additional mobile crushing plants as well as three drill rigs to bolster Wearne's contract crushing, drill and blast capabilities.
The ready mixed concrete (RMC) division increased turnover by 39% to R376.9m in line with the growth target of 25% increase in volumes.
Break-even achieved in months
In its concrete product manufacturing (CPM) division, the Bethlehem brick plant joint venture was commissioned in June 2007 and achieved break-even within nine months. A gross profit margin of 16% was achieved. The full potential of this operation will only be visible after a full year of trading.
The pre-cast concrete pipe plant in Polokwane will be commissioned in June and will form part of the CPM division.
Looking ahead, Wearne said even though the there has been a significant downturn in the residential building market, it is confident that it will realise its growth prospects for the short to medium term.
The slowdown in the residential market will specifically affect the RMC division, but the division will move its focus to the RDP housing market to increase its exposure to that side of the market which is still growing.
The RMC division is also tendering on various major civil engineering projects, including the Gauteng Freeway Improvement Project.
The growth in the civil engineering sector is continuing, and is set to do so for the foreseeable future, Wearne said.
This growth is also simultaneously creating many opportunities for growth in the aggregate division, as the building of roads and infrastructure consumes larger quantities of aggregate than the residential housing sector.
The Board has approved further capital expenditure of R50m to replace existing plant and equipment as well as for new plant for projects tendered on.
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