Afrimat Limited, a building supplies group, plans to list on the JSE's main board in early November, the company said in a statement.
 
Afrimat's product range includes aggregates, readymix concrete and concrete blocks and bricks.
 
The group's underlying operations are market dominant in the eastern and western Cape, northern KwaZulu Natal, eastern Free State and Namibia, the statement said.
 
Afrimat includes two industry specialists founded in 1963 and 1965 respectively. Prima mainly supplies aggregates to the Cape construction and road building industries and has smaller readymix and precast operations, while Lancaster is dominant in quarrying and the supply of concrete blocks and bricks in northern KwaZulu Natal and eastern Free State. The merged group has 18 quarries, 12 readymix plants and eight precast factories as well as five mobile crushing and readymix concrete.
 
Afrimat complements its supply of building materials with drilling and blasting using a fleet of earthmoving equipment and hydraulic rigs. The group also owns a 120-strong fleet of readymix, tipper and delivery trucks. Its customer base ranges from small cash-paying companies to large multinational construction corporations and parastatals including Spoornet, the statement said.
 
Revenue to February 2007 is forecast at 471.4 million rand, which is expected to yield profit after tax of 63.6 million rand, compared with pro forma revenue of 413.4 million  rand and PAT of 46.7 million respectively had the group been merged at February 2006.  Headline earnings in 2007 is forecast at 62.8 million rand, up from pro forma headline earnings of 47.3 rand million for 2006.
 
The statement said that Afrimat's 21% BEE ownership was critical to the group's prospects.
 
"Our BEE shareholding is ahead of Mining Charter requirements and will optimise our ability to secure national and provincial government contracts," said CEO Andries van Heerden. One hundred percent black-owned company Mega Oils, represented on the Afrimat board by Loyiso Dotwana, and broad based black consortium Kwezi Mining whose Gillian Nonhlanhla Jiyane is a non-executive director of the group, make up the 21% stake.

I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge