Afrimat Limited: Company Profile and SWOT Analysis

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Afrimat Limited: Company Profile and SWOT Analysis
Afrimat Limited



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Afrimat Limited Financial Snapshot



Operating Performance

Fast Facts

1 Bryanston Drive, Bryanston, 2191,South The company reported revenue of US$116.42 million

Headquarters Address

Africa during the fiscal year 2011 (2011). The company's

revenue grew at a CAGR of 23.83% during 2007–

Telephone + 27 11 7060258

2011, with an annual growth of 9.83% over 2010. In

2011, the company recorded an operating margin of

Fax + 27 11 7065750 12.83%, as against 14.00% in 2010.



Website www.afrimat.co.za

Revenue and Margins

Ticker Symbol, Stock Exchange AFT, Johannesburg Stock Exchange



Number of Employees 1,437



Fiscal Year End February



Revenue (in US$ million) 116.42



Revenue (in ZAR million) 854.50









SWOT Analysis Return on Equity



Strengths Weaknesses The company recorded a return on equity (ROE) of

12.67% for the fiscal year 2011, as compared to its

Efficient Use of Resources No overseas presence peers, Infrasors Holdings Limited (Ticker: IRA), WG

Wearne Limited (Ticker: WEA) and Brikor Limited

(Ticker: BIK), which recorded ROEs of 6.72%, -

Increasing Revenue Growth Uneven Segmental Performance 245.08% and -662.53% respectively. Furthermore,

the company reported an operating margin of 12.83%

Resource capabilities in 2011.



Strong distribution and delivery system Return on Equity



Opportunities Threats



Government Infrastructure Spending Intense price competition



Rising Building Construction Sector Volatile Input costs



Venturing into cement manufacturing









Liquidity Position



The company reported a current ratio of 1.74 in 2011,

as compared to its peers, Infrasors Holdings Limited,

WG Wearne Limited and Brikor Limited, which

recorded current ratios of 1.44, 0.38 and 0.39

respectively. As of February 2011, the company

recorded cash and short-term investments of worth

US$11.90 million, against zero current debt. The

company reported a debt to equity ratio of 0.20 in

2011 as compared to its peers, Infrasors Holdings

Limited, WG Wearne Limited and Brikor Limited,

which recorded debt to equity ratios of 0.20, 5.01 and

6.15 respectively.









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Afrimat Limited - SWOT Profile Page 1

Afrimat Limited



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TABLE OF CONTENTS



1 Business Analysis ................................................................................................................................... 5

1.1 Company Overview ................................................................................................................................................5

1.2 Business Description ..............................................................................................................................................5

1.3 Major Products and Services .................................................................................................................................6

2 Analysis of Key Performance Indicators ............................................................................................... 7

2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7

2.2 Key Financial Performance Indicators .................................................................................................................10

2.2.1 Revenue and Operating Profit .........................................................................................................................10

2.2.2 Asset, Liabilities and Capex .............................................................................................................................11

2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................12

2.2.4 Operational Efficiency ......................................................................................................................................13

2.2.5 Solvency ..........................................................................................................................................................14

2.2.6 Valuation ..........................................................................................................................................................15

2.3 Competitive Benchmarking ..................................................................................................................................16

2.3.1 Efficiency ..........................................................................................................................................................16

2.3.2 Capital Expenditure ..........................................................................................................................................17

2.3.3 Turn

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