AECI Limited
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AECI Limited Financial Snapshot
Operating Performance
Fast Facts
24 The Woodlands, Sandton, 2052,South The company reported revenues of US$1,576.16
Headquarters Address
Africa million during 2010, with a CAGR of 9.00% during
2006–2010. Its revenue grew at an annual rate of
Telephone + 27 11 8068700
24.22% over the previous fiscal year. In 2010, the
company recorded an operating margin of 7.55%, as
Fax + 27 11 8068701 against 5.26% in 2009.
Website www.aeci.co.za
Revenue and Margins
Ticker Symbol, Stock Exchange AFE, Johannesburg Stock Exchange
Number of Employees 6,459
Fiscal Year End December
Revenue (in US$ million) 1,576.16
Revenue (in ZAR million) 11,569.00
SWOT Analysis Return on Equity
Strengths Weaknesses The company recorded a return on equity (ROE) of
13.94% for 2010, as compared to its peers, Sasol
Broad Product Range Declining Liquidity Position Limited (Ticker: SOL), Omnia Holdings Limited
(Ticker: OMN) and Huntsman Corporation (Ticker:
HUN), which recorded ROEs of 16.83%, 2.84% and
Strengthening Solvency Position Declining Operating Margin 1.51% respectively. The company reported an
operating margin of 7.55% in 2010.
Opportunities Threats
Return on Equity
Growing Demand for Mining Chemicals Crime in South Africa
Nationalization of Mining Industry in
Infrastructure Initiatives in Africa
South Africa
Positive Outlook of South African
Shortage of Skilled Personnel
Economy
Liquidity Position
The company reported a current ratio of 1.27 in 2010,
as compared to its peers, Sasol Limited, Omnia
Holdings Limited and Huntsman Corporation, which
recorded current ratios of 2.35, 1.39 and 1.95
respectively. As of December 2010, the company
recorded cash and short-term investments of worth
US$99.73 million, against US$84.33 million current
debt. The company reported a debt to equity ratio of
0.58 in 2010 as compared to its peers, Sasol Limited,
Omnia Holdings Limited and Huntsman Corporation,
which recorded debt to equity ratios of 0.17, 0.49 and
2.32 respectively.
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AECI Limited - SWOT Profile Page 1
AECI 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 ............................................................................................. 11
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ........................................11
2.2 Key Financial Performance Indicators .................................................................................................................14
2.2.1 Revenue and Operating Profit .........................................................................................................................14
2.2.2 Asset, Liabilities and Capex .............................................................................................................................15
2.2.3 Net Debt vs. Gearing Ratio ..............................................................................................................................16
2.2.4 Solvency ..........................................................................................................................................................17
2.2.5 Valuation ..........................................................................................................................................................18
2.3 Competitive Benchmarking ..................................................................................................................................19
2.3.1 Market Capitalization .......................................................................................................................................19
2.3.2 Efficiency ..........................................................................................................................................................20
2.3.3 Capital Expenditure ..........................................................................................................................................21
2.3.4 Valuation ..........................................................................................................................................................22
2.3.5