Flooring, water and chemicals specialist Accéntuate experienced a tough six months to December 31, 2017, with the company moving from a R3.5-million profit in the same period in 2016 to a loss of R1.78-million.
Accéntuate says its business has suffered on the back of depressed macroeconomic conditions, political uncertainty and a lack of confidence in the country.CEO Fred Plattnotes, however, that the recent weeks “hopefully, signalled the end of ten years of decline” in government’s infrastructure spend.
“At the end of last year, we were forced to ask ourselves if we should continue to manufacture in South Africa.”Platt says he is positive that new President Cyril Ramaphosa, elected in February, will bring about a change in government expenditure.“We believe him when he talks about localisation, manufacturing and infrastructure spend.
“It is like the Reserve Bank said at Davos – the biggest stimulus package in the economy is confidence, and we can see that confidence is returning to South Africa.”Platt warns, however, that this confidence will not have an “enormous impact on Accéntuate over the next six months – we will remain under pressure for the next year”.Accéntuate’s revenue for the six months under review decreased by 1.3% to R157.3-million, owing mainly to lower sales volumes in the FloorworX business which contributed 78% of group sales.
The Pentafloor acquisition was concluded by the end of September last year.Pentafloor is a supplier in the access (raised) flooring market in South Africa, givingAccéntuate a product currently not in its repertoire.
Platt says the company is considering adding more products to its portfolio in a continued attempt to diversify.