AFRIMAT, the construction materials, industrial minerals and bulk commodities group, is working on another acquisition after strong iron ore prices, cost and efficiency initiatives boosted cash and earnings growth in the six months to August 31.
Chief financial officer Pieter de Wit said in a telephone interview yesterday that the balance sheet was healthy and debt free, the group had funded two previous acquisitions in the interim period from its own cash resources, and that they could not yet disclose the details of the next acquisition. Many exciting opportunities were being investigated, he said.
The interim results were boosted by favourable iron ore prices. He said iron ore prices had since fallen sharply, but the iron ore business was still operating at better average margins than the construction materials and industrial minerals operations.
Revenue increased by 55.4 percent to R2.4 billion culminating into a 65 percent increase in operating profit to R582.8 million.
The operating profit margin improved to 24.1 percent from 22.7 percent. Headline earnings per share increased by 60.5 percent to 295.1 cents.
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