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Iliad Africa's year-on-year expenses decreased by 1.9%, reflecting the impact of various disposals. (Shutterstock)
Johannesburg - Despite difficult trading conditions, Iliad Africa reported a significant improvement in the second half of the year, reducing the half-year loss of R54m to R6. 6m, or 4.8c a share.
“We are now at a point at which we are realising the benefits of our revised strategy,” said CEO Eugene Beneke on Tuesday.
Headline earnings in the six months to December 31 2013 increased by 39.6c (2012: 26.3c) to 40c a share.
Revenue on the future portfolios increased by 4.1% to R4.3m (2012: R 4.1m).
Year-on-year expenses decreased by 1.9%, reflecting the impact of various disposals and the focus on expense management to partially negate costs associated with investing in key strategic initiatives.
The building materials distributor disposed of components of the Ceramics portfolio (Ferreira’s and National Tile Traders) and its Timber wholesalers (Thorpe Timber Company and Timber Preservation Services).
Iliad repurchased 1.16% of total issued shares (to be held as treasury shares) at an average price of 546c a share.
The group remains committed to expansion and to building brand portfolios in both the general building and specialised building materials divisions.
Watch the full interview:
“In June 2013 we unveiled our new customer interface brand, which marked the completion of the launch of BUCO stores across the country,” said Beneke.
This included the rebranding and significant revamp of most stores.
“It provides us with the opportunity to capitalise on the strength of a single identity, optimise marketing focus and spend as well as provide a more consolidated offering to our customers,” he said.
Commenting on prospects Beneke said: “The infrastructural efficiencies implemented during the year, the establishment of stringent performance targets, the realignment of the portfolio and the implementation of various key strategic initiatives ensure the group is well positioned to capitalise on opportunities as growth gradually returns to the market.
“We continue to be pleased and astounded by the positive feedback post the completion of our new brand roll-out (the BUCO roll-out) that now provides us the opportunity to build brand equity and achieve those long-term benefits that we have set ourselves.”
Beneke said that from an industry perspective the group sees a mixed bag of key indicators.
“It’s pleasing to see that building plans passed and completed are gradually improving. Confidence levels in the economy are gradually improving, and a slightly more facilitative funding approach by financial institutions is a welcome indicator of improving activity in the sector.”
He said the trading environment will remain challenging, but the group is confident that its current portfolio is well positioned for sustainable growth in the years ahead.
Iliad ended the year with net cash of R38.8m, as opposed to a net overdraft of R76.9m at the end of 2012.
This improvement is mainly due to the proceeds on disposals and increased focus on working capital.
The group declared a final dividend of 20c a share (2012: 20c).
- Fin24
“We are now at a point at which we are realising the benefits of our revised strategy,” said CEO Eugene Beneke on Tuesday.
Headline earnings in the six months to December 31 2013 increased by 39.6c (2012: 26.3c) to 40c a share.
Revenue on the future portfolios increased by 4.1% to R4.3m (2012: R 4.1m).
Year-on-year expenses decreased by 1.9%, reflecting the impact of various disposals and the focus on expense management to partially negate costs associated with investing in key strategic initiatives.
The building materials distributor disposed of components of the Ceramics portfolio (Ferreira’s and National Tile Traders) and its Timber wholesalers (Thorpe Timber Company and Timber Preservation Services).
Iliad repurchased 1.16% of total issued shares (to be held as treasury shares) at an average price of 546c a share.
The group remains committed to expansion and to building brand portfolios in both the general building and specialised building materials divisions.
Watch the full interview:
“In June 2013 we unveiled our new customer interface brand, which marked the completion of the launch of BUCO stores across the country,” said Beneke.
This included the rebranding and significant revamp of most stores.
“It provides us with the opportunity to capitalise on the strength of a single identity, optimise marketing focus and spend as well as provide a more consolidated offering to our customers,” he said.
Commenting on prospects Beneke said: “The infrastructural efficiencies implemented during the year, the establishment of stringent performance targets, the realignment of the portfolio and the implementation of various key strategic initiatives ensure the group is well positioned to capitalise on opportunities as growth gradually returns to the market.
“We continue to be pleased and astounded by the positive feedback post the completion of our new brand roll-out (the BUCO roll-out) that now provides us the opportunity to build brand equity and achieve those long-term benefits that we have set ourselves.”
Beneke said that from an industry perspective the group sees a mixed bag of key indicators.
“It’s pleasing to see that building plans passed and completed are gradually improving. Confidence levels in the economy are gradually improving, and a slightly more facilitative funding approach by financial institutions is a welcome indicator of improving activity in the sector.”
He said the trading environment will remain challenging, but the group is confident that its current portfolio is well positioned for sustainable growth in the years ahead.
Iliad ended the year with net cash of R38.8m, as opposed to a net overdraft of R76.9m at the end of 2012.
This improvement is mainly due to the proceeds on disposals and increased focus on working capital.
The group declared a final dividend of 20c a share (2012: 20c).
- Fin24
