WG Wearne to sell off its non-core assets
WG Wearne has decided to focus on areas where synergies can be found between the aggregate and ready-mix concrete units.
|||Johannesburg - WG Wearne, the ready-mixed concrete and aggregates supplier, has decided to sell all non-core assets and focus on areas where synergies could be found between the aggregate and ready-mix concrete units.
Chief executive SJ Wearne said prospects for the ready-mixed concrete unit remained subdued due to an oversupply of cement. However, Wearne said this division was focusing on the solar and wind farm market in the Northern Cape and expected to receive further contract awards in the coming financial year.
He said the intensive sales drive and pricing strategy implemented in the year to February to gain market share and lift volumes would be continued. The group last week reported a widening in its headline loss a share to 6.95c in the year to February from a loss of 2.83c in the previous year.
Group revenue from continuing operations rose by 5.9 percent to R511.9 million. Operating profit fell to R5.07m from R17.5m.
The group’s gross profit margins from continuing operations rose to 21.1 percent from 20.5 percent. Wearne said slow economic growth, intensive competition and less-than-anticipated government infrastructure expenditure had hurt the group’s results.
Shares in WG Wearne were unchanged, closing at 8c each on the JSE on Friday.
BUSINESS REPORT