PWM acquisition gives Rolfes’ revenue a boost - CNBC Africa

PWM acquisition gives Rolfes’ revenue a boost

Earnings

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PWM is a leader in innovative, sought after water management solutions. PHOTO: Future Agenda

The South Africa-based industrial, agricultural, water and mining chemicals provider saw revenue increase to 1.0 billion rand for the year ending 30 June 2014 from 801 million rand for the same period in 2013.

“Group revenue increased by 25 per cent – mainly due to the inclusion of the Professional Water Management (PWM) acquisition and export growth. Exports, including also sales and services rendered in the foreign subsidiaries, contributed 214.5 million rand to revenue,” [DATA RLF:Rolfes Holdings] said.

“This amounts to an increase of 66.8 per cent over the prior year. The increase is attributed mainly to export growth into the rest of Africa and Europe.”

(READ MORE: Rolfes anticipates positive performance in 2014)

However, operating profit before interest decreased from 98 million rand in the 2013 year to 64 million rand in 2014 while net profit before taxation decreased to 50 million rand from 87 million rand.

“During the year under review, the group focused its efforts on the consolidation of acquisitions, streamlining of divisional structures, unlocking synergies and organic growth of the various niche acquisitions it has made since listing in 2007,” said Rolfes.

“Enhancing shareholder value remained a key driver of the strategic plan for the group and will remain so in the future. We take cognisance of a fairly disappointing performance in our pigments business during the past two years.”

Headline earnings decreased to 39 million rand in 2014 from 40 million rand in 2013 and basic earnings per share decreased to 27 cents from 50 cents.

(WATCH VIDEO: Rolfes FY13 earnings up 8.5%)

“The fundamental approach for the forthcoming year will be the building of strategic alliances locally and internationally. The rest of Africa continues to be a key growth area for all divisions with the focus being on establishing new businesses according to our current business model,” the company said.

“Eastern Europe has performed well beyond expectation since inception this year and further market share growth is expected in Eastern and Western Europe. The newly established Nigerian operation has yielded exceptional results, and the new Tanzanian operation is now established.”

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