Johannesburg - Mazor, the listed construction materials group, returned to profitability in the year to February after it implemented cost efficiencies and streamlined operations to improve its bottom line.
Group chief executive Ronnie Mazor said yesterday that increased activity in the sector, particularly in the residential subsector, positively impacted the order book and revenue growth.
Headline earnings increased to R30 million from a loss of R30.9m in the previous year, resulting in headline earnings a share improving to 26.9c from the 26.1c loss in the previous year.
Revenue rose almost 30.8 percent to R491.7m from R376.1m.
Mazor said the aluminium division, which designs, manufactures and installs aluminium structures such as doors, windows, shop fronts, façades and balustrades for major blue chip construction groups, grew revenue by 61 percent to R280.8m.
He said the glass division posted double-digit growth in revenue of 12.7 percent to R139.5m, but revenue in the steel division declined 8.4 percent year on year to R71.3m.
Operating profit
The group invested R19.4m in a new plant, predominantly to automate and improve efficiencies in the steel and glass divisions.
Operating profit increased 246.2 percent to R40.9m from R28m. A dividend of 8.5c per share was declared.
Mazor said the aluminium division had a good year with improved performance from its manufacturing operations and they expected both top and bottom line plus margin improvements to continue.
He said there was increased activity in the year by the steel division, but rising material costs remained a challenge.
Mazor said the glass division still incurred an operating loss in the year, but its performance had improved year on year, all three plants had been streamlined and the product-focused strategy and optimised efficiencies were beginning to bear fruit.
Turning to the group’s prospects, Mazor said they anticipated some economic challenges. “Being predominantly Cape-based and given that the Cape economy is growing faster than the rest of the country, we believe that we are all well positioned to take advantage of future growth.”
Mazor added that they believed the group’s focus on cost efficiency and product offering positioned it to benefit from growth opportunities. Shares in Mazor remained flat yesterday at R1.60.
BUSINESS REPORT