Roy Cokayne
PPC was pursuing additional opportunities in line with its strategy to increase its revenue beyond South Africa by expanding into Africa, the listed cement and lime producer confirmed yesterday in a first-quarter trading update.
The company expected to make further announcements in the course of its financial year to September.
Paul Stuiver, PPC’s now retired former chief executive, confirmed last month that the company was pursuing four new opportunities in African countries and he expressed confidence that one of them would be finalised during the next three months.
PPC took another significant step in its Africa strategy with the announcement in December that it would acquire 51 percent of Cimerwa of Rwanda for $69.4 million (R624m). In November PPC received its Zimbabwean indigenisation certificate, which opened the way for the firm to expand its operations there.
The company said yesterday that the first quarter of its financial year was characterised by growth in its South African, Botswana and Zimbabwean cement volumes.
While the environment remained challenging, some increases in prices were achieved in South Africa and Zimbabwe.
It said there was “limited visibility” on major infrastructure projects in South Africa, Botswana and Zimbabwe but the outlook for cement demand in these three territories “gives us reason to remain cautiously optimistic”.
PPC shares fell 3.59 percent to close at R32 yesterday.
n Meanwhile, Group Five, the listed construction and engineering group, said yesterday that its fully diluted headline earnings a share for the six months to December were expected to be between R1.43 and R1.56, or between 10 percent and 20 percent higher than the R1.30 achieved in the previous corresponding period.
Its fully diluted earnings a share were expected to be between R1.34 and R1.42, or 50 percent to 60 percent higher than the 89c achieved in the previous interim period.
However, the group said the guidance excluded earnings from the implementation of its revised broad-based black economic empowerment deal approved by shareholders on November 6 last year.
The group continued to account for its construction materials segment as a discontinued operation and as a non-current asset held for sale.
Group Five said its divisions had performed in line with expectations. The construction business and the engineering and construction business showed consistent performance although at the lower range of margin guidance.
The exception was its building and housing segment, which was still affected by local market margin pressure.
The stock was flat at R31.50.