Accentuate - interim results 31 December 2008
Wed, 25 Feb 2009
Turnover increased from R121.8 million to R161.0 million in 2008. Profit before taxation increased to R11.4 million (2007:R10.3 million). Profit attributable to ordinary shareholders surged to R8.9 million (2007:R7.1 million). In addition, headline earnings on a per share basis to 8.90cps (2007:9.80cps). Dividends per share No dividends have been declared for the period under review. Prospects The outlook for the foreseeable future remains bullish with emphasis on government's infrastructure spending programme on schools, hospitals, public transport, and general social upliftment. Numerous projects have already come on line with the existing project pipeline in which Accentuate is able to participate stretching well beyond 2010. The second half of the year should see increased activity in the areas of the world cup stadiums, airports and public transport infrastructure impacting on both the flooring and glass and aluminium divisions. The hospital revitalization program as well as the announced increase of R4.6 billion for school and clinic building projects will further increase demand for the products. The focus on identified "blue chip" customers by the chemical division should continue to produce the positive results seen during the first half of the financial year with the contribution from this division becoming meaningful during the latter half of the year. In addition to the anticipated increase in activity during the second half of the year and into 2010 and beyond, we are also confident that margins will return to the levels that were experienced prior to 2008. The reduction in the diesel price will have a substantially positive impact on the profitability of the group especially on that of the flooring division situated at least 1000km from the major markets. The strategic entrance of the company into the adhesive market (for flooring products) and the introduction of a variety of new products during the next six months will further contribute towards both the competitive position of the company and flow through to revenue and profitability of the overall business.
