Accentuate final results June 2013

Revenue increased to R284.2 million (R282.7 million). Gross profit improved to R149 million (R148.7 million), but EBITDA declined to R18.7 million (R22.9 million). Net attributable profit rose to R8.8 million (R7.5 million). However, headline earnings per share from continuing operations fell to 8.41cps (9.47cps).

Although the economic outlook for South Africa remains generally subdued, we are confident that the pressure for increased government expenditure in the area of infrastructure will lead to increased investment in both healthcare and education. These are critical areas for South Africa and indications are that government spend in these departments, albeit erratic, is set to increase. The effect that the upcoming elections will have on the economy is of concern, but generally management remains cautiously optimistic in this regard.

The repositioning of Safic and the implementation of its targeted segmental strategy is already showing results and should see a more meaningful contribution from the cleaning chemicals business to the Group's results in the coming year. Although the demand from the mining sector for the products supplied by Safic is not anticipated to improve much in the near future, the diversification and focus on other market segments will ensure growth and more annuity income.

ION Exchange Safic is well positioned to take advantage of the significant opportunities that exist within the broad water treatment market, which has welcomed another supplier in this sector. There are some immediate opportunities being pursued in the mining, heavy industry and effluent treatment areas while some larger water related infrastructural opportunities will be evaluated and targeted according to capacity and risk appetite.

2013-09-26 08:39:57