The group reported that its earnings per share (EPS) surged by 461 per cent to 231.9 cents per share for the six months ended 31 December 2014.
[DATA DAW:Distribution and Warehousing Network Limited]’s core headline an earnings per share was down 61 per cent to 15.9 cents per share, mainly due to the effects of the delays in government infrastructure spend.
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The group’s revenue was up nine per cent to 2.4 billion rand from 2.2 billion rand in 2013.
The company’s building segment revenue surged 16 per cent, the infrastructure segment was up four per cent and the solutions segment rose 16 per cent.
The group’s statement said the results were significantly impacted by two key factors – a NUMSA strike in both the building and infrastructure segments, as well as 37 power interruptions that crippled manufacturing capacity.
“In addition, there were severe delays in the implementation of government work in the Infrastructure segment, despite strong order books,” read the group’s statement.
“Water-related spend was the largest category of contract postponements in the South African civils market, with 18 water and sanitation projects postponed in the first half of F2015 against nine in the first half of F2014.”
DAWN said, in addition, government delayed the awarding of new tenders.
“Operating expenses on a like-for-like basis were up 9.7 per cent. Net finance cost was up 32 per cent to 26.3 million rand from 19.9 million rand in 2013 due to 76 million rand of acquisitions and higher working capital,” added the group.
“The proceeds from the GROHE transaction eliminated debt from November 2014, leaving the group 150 million rand cash positive.”
The group said significant interest savings were being realised.
“Income from associates and joint ventures was up 25 per cent to 11.3 million rand from 9.1 million rand in 2013,” reported the group.
This has been attributed to strong recovery from associates (Heunis and Fibrex) and some underperforming investments (IPS, Simba).
The group has two main operating segments, namely Building and Infrastructure, both being supported by the Solutions segment.
DAWN manufactures and distributes quality branded hardware, sanitary ware, plumbing, kitchen, engineering and civil products through a national, strategically positioned branch network in South Africa, as well as in selected countries in the rest of Africa and Mauritius.