Buoyant Argent looks to crank up turnover

Posted On Wednesday, 28 June 2006 02:00 Published by eProp Commercial Property News
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'Argent will now attempt to double its 2006 turnover by the 2009 financial year'

Construction IndustryBuoyed by the strong performance of its businesses in the year ended March 31, diversified industrial group Argent said on Tuesday it wanted to double its turnover by 2009.

In the past financial year, Argent, which has interests in property, engineering and steel, reached the R1bn mark in turnover that it said had been its short-term goal.

That represented a 33% increase from the previous corresponding period's R751,9m.

"Argent will now attempt to double its 2006 turnover by the 2009 financial year," CEO Treve Hendry said in a statement on Tuesday.

He said the company's steel businesses had had a good year. Argent's steel merchants, trading as Phoenix Steel in different parts of the country, posted good results, with the exception of Phoenix Steel Gauteng, whose contribution to the group's total turnover fell 20%.

Hendry said steel price decreases had affected the company's performance. Prices of different steel products are expected to increase 4%- 25% from next month, he said.

Subsidiary Giflo Engineering increased turnover 24%, while New Joules Engineering, the US-based company, has started the new financial year with an order book of $1,3m.

Hendry said the company was in the running for tenders worth $4,2m. He said he expected it to be successful in the tenders.

Hendry said the group's growth was set to continue in the current financial year. He said he expected the group's businesses to report increases in turnover and profit.

Reasons for the company's optimism about prospects in the current financial year include steel price increases, expansion of Giflo's capacity, and the weakening of the rand, which Hendry said would improve its businesses' export margins.

In the past financial year, Argent acquired Toolroom Services, manufacturer of steel office furniture, tables and shelving, as part of the group's strategy to build a portfolio of branded street product companies.

Hendry said Argent would open a flagship Life 'n Leisure Centre in Umhlanga Ridge, near Durban.

He said the facility - which would will include a showroom, sales and fitment centre - would give the group a base for its Excalibur and Jetmaster products in KwaZulu-Natal.

The company already has a Life 'n Leisure Centre in Milnerton, Cape Town.

Hendry said a revaluation of the group's properties, completed in March this year, resulted in an increased valuation of R69,4m, bringing the total value of the group's properties to R198m.

Headline earnings a share increased from 127,3c to 147,8c. Attributable earnings a share increased 15,7%, from 127,4c to 147,4c. The dividend increased from 21c a share to 25c a share.

Shares in Argent closed unchanged at R12,20 on the JSE on Tuesday.

 

Last modified on Thursday, 17 October 2013 18:34

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