Platinum mines strike drives DAW HEPS down 20%


The group manufactures and distributes quality branded hardware, sanitaryware, plumbing, kitchen, engineering and civil products.

The company’s results for the year ended 30 June 2014 also saw the group’s revenue growth by a healthy 18 per cent to 4.4 billion rand from 3.7 billion rand in 2013.

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“Operating profit improved by 15 per cent from 93.1 million rand to 107 million rand before the impact of impairments and gain on de-recognitions,” read the company statement on SENS.

[DATA DAW:Distribution and Warehousing Network Limited]said unfortunately due to the persistently tough building market, the group had to impair the carrying value of goodwill on two businesses, DAWN Kitchen Fittings (impaired by 33.6 million rand) and AST (impaired by 7.8 million rand).

The building segment of the group accounted for 44 per cent of the company’s revenue this is against tough trading conditions.

“Although price increases assisted a revenue improvement of eight per cent to 2.1 billion rand, profit before interest and taxation (PBIT) was down 45 per cent to 36.2 million rand compared to 66.1 million rand in the same comparable period last year.”

The group said part of the group’s sluggish performance was a result of the five month platinum strikes.

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Distribution and Warehousing said the five-month platinum mine strikes had an indirect effect on the group as the rural consumers in these areas, which are responsible for the cash sales of most of the Group’s key customers cash, had virtually no disposable income.

“Gauteng experienced excessive rainfall in March, which meant a loss in plumbing groundwork, with the election causing further disruptions in May.”