Accéntuate H1 headline earnings up 53% y/y
JSE-listed Accéntuate saw a 53% year-on-year increase in its headline earnings per share (HEPS) to 5.75c for the six months ended December 31,
2015, while normalised HEPS showed an increase of 63%.
Accéntuate CEO Fred Platt noted that, while cash flow remained under pressure, the company had a programme in place to focus on cash generation, as with cost reduction.
He added that the board had also deemed it prudent to not declare an interim dividend.
Nevertheless, the company’s turnover increased 1.5% to R173-million for the six-month period, while gross profit increased by 2.2% on the back of a slight increase in the gross margin.
“I am pleased that our concerted effort to contain costs resulted in a 2% reduction in operating expenses and allowed operating profit to increase by 46% to R10.8-million. This is a number we are proud to deliver to our shareholders,” said Platt.
Accéntuate’s flooring division FloorworX contributed 80% of group revenue, with divisional revenue remaining fairly flat, increasing 1.5% to R137.6-million. FloorworX increased operating profit by 47% to almost R7.5-million in the six months to December 31, owing to its gross margin maintenance and stringent cost management.
The group’s environmental solutions for business, which comprise its Safic operations, contributed the remaining 20% of group revenue.
“We feel that the group is poised to extract value from expansion within the water treatment sector and, together with the diversification we have in place and stringent cost control, the group remains cautiously optimistic that it will deliver acceptable returns,” Platt said.