Roy Cokayne
A CONTINUATION of the deterioration in the manufacturing and construction industries, prolonged industrial action, severe upward pressure on raw material and fuel prices, and depressed government infrastructure expenditure dented the financial results of Accéntuate in the year to June.
The AltX-listed group of companies serving the construction, chemicals, infrastructure development and water treatment markets in South Africa reported yesterday a 47 percent slump in headline earnings a share to 4.46c compared with the previous year.
Group revenue increased by 8.4 percent to R308.1m from R284.2m and gross profit grew by 8 percent to R160.8m. However, operating expenses increased by 14 percent to R153.1m.
The increased expenses included R6m related to the incorporation of acquisitions and R2.5m because of higher fuel prices plus significant electricity and water price increases and the impact of the weaker rand.
Overall group profit for the year declined by 42 percent to R5.1m. A final dividend was not declared.
Chief executive Fred Platt said there had been successes despite the immensely challenging operating conditions the group faced during the year. He said these included the successful integration of two acquisitions, with Suntups broadening the range of flooring available from flooring division FloorworX, and Degrachem exposing environmental solutions division Safic to the metals treatment market.
He said much effort had been extended to market Ion Exchange Safic, the group’s water treatment division, to strategic corporations and water utilities across southern Africa. Some projects and water treatment chemicals supply contracts had been secured and discussions were ongoing regarding a number of others.
Platt said management was confident the group would in the near future regain and exceed the levels of profitability previously achieved.
The shares fell 12.28 percent to close at 50c on AltX.