The open pit mining company saw revenue increase to 931 million rand for the six months ending 31 August 2013 from 671 million rand for the same period in 2012.
“The unaudited condensed consolidated interim financial results for the period reflect the group’s success in achieving its strategic objective of ‘growth from diversification’, and the benefits of prior year initiatives in this regard, as well as the successful acquisition of a controlling stake in Infrasors Holdings Limited,” said Afrimat chief executive Andries van Heerden.
“The mining and aggregates segment generated excellent profits due to improved market conditions and the inclusion of the results of Infrasors for the first time. The concrete-based products segment achieved a satisfactory increase in both sales volumes and prices.”
Gross profit rose 42.5 per cent from 161 million rand for the period ended 31 August 2012 to 229 million rand in 2013, and profit before taxation increased by 41.3 per cent from 73 million rand to 103 million rand.
Total comprehensive income for the period went up 47.8 per cent from 50 million rand in 2012 to 75 million rand in 2013, and diluted earnings per ordinary share increased by 37.9 per cent from 34.3 cents to 47.3 cents.
“Initiatives aimed at expanding volumes, reducing costs, improving efficiencies and developing the required skill levels of our employees will be a key focus in all operations. These moves, supported by on-going product diversification in attractive growth sectors should see volumes increase,” said van Heerden.
“The recent improvement reflected in confidence indices relating to the construction industry as published by the Bureau for Economic Research, together with improved market conditions being experienced, bode well for the future.”