Bheki Mpofu
9 May 2008
Johannesburg — INCREASED production and sales and the containment of operating costs saw building materials supplier Infrasors record strong results for the year to February as it benefited from growth in the construction sector.
CEO Le Roux Roets said yesterday the group's R81m capital expenditure programme was on track, putting it in a good position to take advantage of continuing infrastructure growth.
The group reported revenue grew to R237m for the year, up 51,1% from the previous year, while headline earning per share jumped 111,4%. A maiden dividend of 12c a share was declared.
Infrasors (IRA), which listed on the AltX last July, said strong performances by its sand and silica producer Delf Sand and Lyttelton dolomite operations were the main contributors to overall results, accounting for 49% and 37% of revenue respectively. Its brick manufacturer Infrabric contributed 10%.
A 42% increase in Delf Sand's silica production to 499400 tons was the result of the commissioning of another dryer at the operation and an increase in its delivery fleet.
Roets said progress had been made at the Pienaarspoort flint silica and crushing plant project, with plant construction and commissioning expected by the second half of the year.
The group is a manufacturer and supplier of both industrial and construction products, consisting primarily of aggregate stone products, aggregate slag, cement bricks, standard and coloured paving bricks, metallurgical grade dolomite and industrial sands.
Roets said that the prospects looked positive in the short term as demand showed no signs of softening.
"In the medium term, the group is well placed to continue to grow its revenue stream as the strength of demand relative to constrained supply for the majority of its products continues.
"A capital expenditure programme for 2009 totalling R80,6m will extend capacity, resulting in economies of scale and reduced production costs per unit," he said.
The group said it had installed diesel generators at all its operations in response to power cuts.
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