O-Line turns in strong figures

Posted On Friday, 13 March 2009 02:00 Published by eProp Commercial Property News
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O-Line Holdings reported a strong performance for its interim period, boosted by a boom in investment in infrastructure projects in SA and Africa.

EskomO-LINE Holdings yesterday reported a strong performance for its interim period, boosted by a boom in investment in infrastructure projects in SA and Africa.

CE Graeme Smart said both local and cross-border demand for the company’s products had remained strong during the period, but said a slight drop was expected in the second half due to the global economic crisis.

The AltX-listed group provides a range of products that support infrastructure development, from cable management and structural support systems to galvanising, construction products, road safety products and signage.

Headline earnings per share grew 28% to 8,56c; revenue was up 41% to R84m; and after-tax profit at R13,5m was 80% up on the previous comparable period.

The results, however, did not take into account O-Line’s recent acquisition of Armco, which would have brought its revenue up to R253m and headline earnings per share to 17,68c. Armco’s consolidated revenue and after-tax profit for the six months to December amounted to R147m and R17m.

The R142m purchase of Armco, which manufactures and supplies galvanised corrugated steel products, was completed in June last year and its results are expected to be consolidated in O-Line’s full-year performance.

Smart said the group was heavily involved in road development and mining and had plans to increase its activity in the power generation sector through some of the major contracts Eskom was putting out to tender.

“We are sitting in the sweet spot of the economy right now and preparations are under way to ensure that we capitalise on the roll-out of infrastructure expansion in all these sectors in the months ahead,” he said.

Smart said O-Line’s strategy was to consolidate the offerings of O-Line and Armco to supply infrastructure expansion projects in SA and abroad.

 

Last modified on Thursday, 31 October 2013 20:11

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