Trellidor Holdings increased headline earnings per share by 196 percent to 40.8 cents in the year to June 30, in spite of operational challenges such as higher raw material costs and logistical delays.
The results released yesterday showed revenue rose 23 percent to R518 million.
Earnings per share increased 296 percent to 40.7 cents a share, from a loss a share of 20.8 cents in the 2020 financial year.
A final gross dividend of 11 cents per share was declared - the final dividend was passed last year.
Management said the group benefited from an apparent upswing in consumer spend being focused on their residences.
Challenges included sharply increasing raw material prices, factory disruptions through increased absenteeism, and logistical delays leading to stock shortages, all of which had a negative impact on margins.
The group managed to absorb these costs with the gross profit margin improving to 42.3 percent over 41.6 percent the previous year, mainly due to cost improvements from production levels returning to near pre-Covid-19 levels.
Strong cash generation continued through the period with cash generated from operations rising to R96.4m from R55m. The cash was used to purchase the Trellidor UK business (R11.5m), pay the postponed 2020 interim dividend and distribute the 2021 interim dividend (R17.7m), buy back shares (R11.7m) and service debt and interest (R24.4m).
BUSINESS REPORT ONLINE