WG Wearne significantly exceeds growth forecasts
15 May 2007
AltX listed company continues to take advantage of buoyant construction industry.
Tuesday, 15 May 2007: AltX–listed WG Wearne, a supplier of ready mixed concrete and aggregates, today announced its annual results for the year ended 28 February 2007, reporting a 79% increase in revenue to R352 million. Net tangible asset value per share increased over 100%.
Headline earnings increased 76% from the previous year to R25,8 million, and attributable earnings increased 65% from the previous period to R26 million. Headline earnings per share increased 35% to 19.7 cents.
CEO John Wearne says: “The company maintained EBITDA (earnings before interest, tax, depreciation and amortisation) margin despite experiencing some shortage of materials for the ready mixed concrete division during the year. EBITDA increased 98% to R59,2 million. The lower increase in headline earnings per share is directly attributable to the issue of 20 million new ordinary shares to partly fund the W De Bruyn Sandwerke acquisition.”
Wearne acquired three sand and stone quarries from W De Bruyn Sandwerke to strengthen its presence in Gauteng and ensure aggregate supply to the group's concrete operations. “The full benefits of the De Bruyn acquisition will realise in the new financial year,” says Wearne.
Subsequent to the financial year end, Wearne acquired two further quarry operations in Tzaneen and Pietermaritzburg, which are subject to certain profit warranties.
The move is expected to expand Wearne's presence in the fast growing Limpopo province aggregate market as well as its geographical footprint into KwaZulu Natal. The company also issued a further cautionary.
Wearne's prospects point to continued growth. “We recently received an order from The Grinaker-Lta/Interbeton Soccer City Joint Venture to supply all the concrete for the upgrading of the FNB Stadium in Nasrec.”
“Numerous other projects relating to the 2010 Soccer World Cup, Government's planned infrastructure spend, as well as mining related projects, bode well for the group's continued growth strategy,” concludes Wearne.
WG Wearne has a customer base in excess of 500 private and corporate customers that spans the mining, infrastructure and construction industries and includes the major construction companies Concor, Group Five, Murray & Roberts and WBHO. Its stone crushing and ready mixed concrete plants are strategically located across the Free State, Gauteng, North West, Limpopo and KwaZulu Natal provinces.