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Mazor group reports a drop in earning
Edited by : AL CIRCLE
2 min read
MAZOR Group, the steel, aluminium and glass products company, yesterday reported a fall in headline earnings per share from 8,2c to 4,8c for the year ended February.
But the group’s steel division capitalised on a more buoyant demand in greater SA to offset the negative effect of a diminished Western Cape market — its traditional base. Its revenue rose 21%, to R80,3m from R66,3m, with operating profit up 70%, to R10m from R5,9m.
The aluminium division secured a number of major projects in the second half of the year, but nonetheless posted an operating loss of R5,1m. A R7,6m loss in the glass division improved to a loss of R1,8m.
The group’s overall revenue increased 25%, to R233,4m from R186,8m, while profit dropped to R6m from R10m. The group declared a 1,6c dividend, from 2,8c the previous year.
It said while trading conditions remained difficult throughout the year, signs of a recovery were beginning to show. The group had to contend with many public holidays in April and strikes in July, which led to businesses closing for longer periods than anticipated, negatively affecting sales volumes.
But CEO Ronnie Mazor said commercial and industrial construction markets in the Western Cape were on the mend. Project finance was becoming more readily available, "a welcome relief after a year plagued by project delays due to funding constraints".
"This is particularly evident in large-scale projects, Mazor’s target market, as reflected in the substantial escalation in demand and the new projects secured."
But the group’s steel division capitalised on a more buoyant demand in greater SA to offset the negative effect of a diminished Western Cape market — its traditional base. Its revenue rose 21%, to R80,3m from R66,3m, with operating profit up 70%, to R10m from R5,9m.
The aluminium division secured a number of major projects in the second half of the year, but nonetheless posted an operating loss of R5,1m. A R7,6m loss in the glass division improved to a loss of R1,8m.
The group’s overall revenue increased 25%, to R233,4m from R186,8m, while profit dropped to R6m from R10m. The group declared a 1,6c dividend, from 2,8c the previous year.
It said while trading conditions remained difficult throughout the year, signs of a recovery were beginning to show. The group had to contend with many public holidays in April and strikes in July, which led to businesses closing for longer periods than anticipated, negatively affecting sales volumes.
But CEO Ronnie Mazor said commercial and industrial construction markets in the Western Cape were on the mend. Project finance was becoming more readily available, "a welcome relief after a year plagued by project delays due to funding constraints".
"This is particularly evident in large-scale projects, Mazor’s target market, as reflected in the substantial escalation in demand and the new projects secured."
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