Sure Kamhunga
1 October 2008
Johannesburg — INVESTMENT holdings group Excellerate yesterday said its business defied tough trading conditions spawned by punitive lending rates and waning consumer demand to post impressive returns in the 12 months to June.
The group, whose businesses are focused mainly in trading, distribution and light manufacturing, said despite warnings of tougher business conditions, its subsidiaries would buck the trend of posting good returns in the coming year, buttressing its growing balance sheet.
"Although our results are up to June and since then conditions have changed, we are still confident of the future because we have a fairly good spread of business under the group," CEO Gordon Hulley said.
The group has been on an acquisition spree since November to consolidate and grow its domestic market share.
It acquired a 50% stake in Chattels, an event management firm and infrastructure development company, and took over a parking management business, Omnipark, which Hulley said showed good promise because of growth in shopping complexes across SA.
"The acquisitions undertaken in the past year will be bedded down within the group, and the growth opportunities that were identified at the time of acquisition will be further pursued."
Excellerate increased revenue 14% to R587m by end-June. Profit after tax went up almost 79% to R29,4m and diluted earnings per share and diluted headline earnings per share increased 79,2% to 12,9c a share.
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