AFFORDABLE bulk building materials supplier Hardware Warehouse, which listed on AltX in September, yesterday reported a 73,5% increase in revenue to R103m for the six months to December.

CEO Shaun Miller said the surge in revenue was thanks to an increase in the number of stores, as well as growth from existing stores. New stores accounted for 38% of the revenue increase, and growth from existing stores made up 30%. The company delivered an 82,8% increase in headline earnings per share, from 5,3c to 9,7c.

Hardware Warehouse’s share price surged nearly 17% to 70c by about 4pm yesterday after publication of the results.

Miller said the company, which has traded for 12 years and has its head office in East London, mainly supplied affordable bulk building materials to rural communities, home builders and “more informal builders”. He said building cost inflation of about 10% was also contributing to the bottom line.

The company operates predominantly in the Border-Kei area of Eastern Cape and has also established a branch in Mtubatuba, north of Richards Bay.

“We will be expanding a number of stores in that region and are looking for opportunities in Swaziland,” said Miller.

He said the company’s market differed from the “suburban” market, where people built when they had money and in “good times”. The “suburban” market was likely to slow because of tougher economic conditions.

But Hardware Warehouse’s market consisted of people who were building homes through necessity, as they had previously lived in informal settlements. He said previously these customers were unable to borrow money, but were now receiving finance from the banks.