Accent interim results December 2011
ACE
Posted Thu, 23 Feb 2012
Revenue for the interim period increased to R143.3 million (2010: R127.7 million). Gross profit grew to R77 million (2010: R66.4 million), and earnings before interest, tax, depreciation and amortisation rose to R13.1 million (2010: R11.3 million), while profit attributable to equity holders of the parent was recorded at R5.3 million (2010: loss of R30.3 million). Furthermore, headline earnings per share increased to 6.86cps (2010: 3.45cps).
Dividend
Accentuate management find it prudent, at this stage, not to declare an interim dividend.
Prospects
Although it is anticipated that the macro-environment within which Accentuate operates will remain challenging in the second half of the financial year, management is confident that the dominant position it holds within the niche in which it operates will offer the necessary protection in order to ensure that Accentuate continues to deliver an acceptable set of results for the full year through to June 2012. The focus of the business going forward remains expanding both our product range into a well established customer base as well as expanding the geographical distribution footprint.
This will be achieved through collaboration with leading global players within the floor coverings market. Other focus areas include the maintenance of margins through effective pricing, cost control and productivity initiatives as well as minimising the effect of currency fluctuations, the rise in commodity prices and rampant energy escalations. The outlook for the flooring division remains generally positive and management is confident that the momentum currently being seen will continue through the next half and well into the 2012/13 financial year.
Safic will continue its focus on building strong annuity income streams in the institutional markets and through extraction between group companies and the Thebe invested companies. Expansion within the construction chemical sector is also envisaged. Africa remains a major potential market for the products and services offered by Accentuate and focused attention will be paid to expanding our distribution presence on the continent. Government infrastructure has started to impact positively on the results and activity within Accentuate and even limited spend in the areas of education and healthcare has a significant impact on the performance of FloorworX and Accentuate. Positive Government spending within the areas of healthcare and education will have a material impact on the profitability of FloorworX. Accentuate's growth strategy includes both targeted organic growth within predetermined market segments as well as targeted acquisitions that meet our stringent criteria for growth that is earnings enhancing.
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