Sephaku Holdings reports mixed results amid cautious optimism in construction sector

SEPHAKU Holdings' construction materials subsidiaries have not yet seen a material uplift in demand for construction materials, but the retail environment for bag sales has improved, said CEO Kenneth Capes on Friday.

- EDWARD WEST

In the six months to September 30, the group, which counts Sephaku Cement (SepCem) and Métier as its key investments, reported consolidated revenue increasing to R665.1 million from R613.8m, while net profit increased to R36.7m from R32.6m. Headline earnings per share increased by 4.9% to 14.45 cents from 13.78 cents.

Commenting on the outlook for the rest of the year, Capes said he expects the operating environment to remain subdued during the second half. Nonetheless, both businesses remain "cautiously optimistic" and are positioned to capitalise on growth as it emerges.

"Métier will continue on its expansion strategy, with a new batch plant scheduled to open in Richards Bay in the coming months. Further expansion in the Western Cape is also planned, supported by the encouraging performance of operations in the region, which have begun contributing meaningfully to group results," said Capes.

SepCem anticipates continued modest improvement in retail sector demand and road construction, partially offset by stagnant civil construction.