Rosy revenue outlook for bigger Buildmax

Posted On Tuesday, 03 June 2008 02:00 Published by eProp Commercial Property News
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BUILDMAX, a supplier to the mining and construction industries, has set itself the ambitious targets of raising turnover 15-fold in the present financial year. As if to underline this, its share climbed more than 6% yesterday.

Construction IndustryThe R111,5m revenue the group made in the year to February is minuscule compared with the R1,7bn it expects to make this year.

However, the recent results do not take into account two major acquisitions the group made between December and March, which are expected to enhance an enlarged Buildmax’s earnings.

The group spent about R1,5bn to acquire equipment and services supplier Buildco and Diesel Power Open Cast Mining, strengthening its position in the both the mining (especially coal mining) and the construction sectors.

These are both high-growth sectors, given the increased demand for coal by Eskom, as well as billions of rands being spent by both the government and private sector on infrastructure projects.

The group has also projected an after tax profit of just above R200m, making it a competitor in its sector.

CEO Paul de Klerk said the group’s equipment and services division would do even better than expected because it was already dealing with huge demand.

The prospects look rosy.


Last modified on Tuesday, 08 October 2013 12:09

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