PPC posts flat HEPS as company recovers from boardroom fight

by Trust Matsilele 0

The group saw a revenue surge of nine per cent to nine billion rand for the year ending 30 September 2014 compared to 8.3 billion rand in 2013.

The cement company declared an annual dividend of 114 cents per share after a final dividend declaration of 76 cents per share.

The group is upbeat over the results posted.

“PPC’s rest of Africa expansion strategy is progressing well with construction underway in four countries,” Bheki Sibiya, executive chairman said.

(READ MORE: PPC upbeat over African expansion)

“The feasibility study in Algeria remains in progress. Group cement sales ended two per cent higher than last year, with improvements in export sales and the consolidation of sales from CIMERWA, our operations in Rwanda, and newly acquired Safika Cement and Pronto Readymix businesses.”

Sibiya added that these improvements were partly offset by declining sales volumes in South Africa.

“In addition, 100 million rand of shares from the BBBEE I transaction in 2008 have now vested in the hands of employees,” he said.

[DATA PPC:PPC Ltd] said performance was hampered by industrial action on the platinum  belt which had an adverse impact on trading conditions in South Africa.

“This was partly offset by the consolidation of acquired operations Safika Cement and Pronto Readymix,” read company statement on SENS.

“Performance in the other African segments was mixed, with existing operations
marginally increasing their contribution to group revenue. Zimbabwe, the largest contributor, achieved another pleasing result.”

The results will bring relief to the cement company that has been on the limelight over disputes with former chief executive Ketso Gordhan.

(READ MORE: Ketso Gordhan’s fight with CFO was petty: PPC chair)

The group said growth in the South African economy, which remains subdued, was an important foundation for our expansion strategy.

“Improved economic growth is necessary more especially at a time when cement capacity is increasing markedly,” said PPC.

“We therefore remain confident about prospects for strong growth in the other African markets in which we operate. We believe we are on track to meet our strategic objective of generating 40 per cent  of our revenues from the rest of the continent by 2017.”