Iliad Africa posts earnings drop

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27-03-2012
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Fin24
Source

Johannesburg - Building materials retailer, Iliad Africa [JSE:ILA], on Tuesday posted a drop in headline earnings per share to 9.5 cents in the year ended December, from 39.1c a year earlier.

Group revenue was up by 7.7% to R4.2bn, mainly due to a strong performance by the inland regions of the general building materials division. Earnings before interest, tax, depreciation, and amortisation came in at R113.2m compared with R115m previously.

The market in which Iliad operates continues to experience a subdued trading environment, with only marginal recovery in building plans passed and a protracted slowdown in the finishing end of the industry.

The other key drivers affecting the group's results were the once-off restructuring costs of R52.5m and a R249.5m impairment of intangible assets, which were announced at the interim results in 2011, mainly relating to the Campwell Hardware and Thorpe Timber businesses.

The group declared a final dividend of 20c per share.

Iliad CEO Eugene Beneke said: "We've had to realign a portion of our business as a result of the significant slowdown in the building and construction industry.

"Now that our portfolio adjustment is almost complete we believe that, with a streamlined portfolio and good progress on the implementation of various key initiatives, we are well positioned for sustainable growth and strategic expansion."