Sephaku to cut board members

Sephaku Holdings, which has a portfolio of assets focused on the building and construction-materials industry, has embarked on cost-cutting measures that include reducing the number of board members from 10 to seven, says CEO Lelau Mohuba.

Sephaku Holdings, which has a portfolio of assets focused on the building and construction materials sector, has embarked on cost-cutting measures that include reducing the number of board members from 10 to seven, says CEO Lelau Mohuba.

The reduction of the firm’s head office expenses is meant to soften the effect of difficult trading conditions in the second half of the current financial year.

The company, the portfolio of which includes subsidiary Métier Mixed Concrete and associate Sephaku Cement (SepCem), said on Tuesday it expected the constrained trading environment to persist.

The group said mixed concrete supplier Métier had been negatively affected by the depressed construction sector.

“Industry cement volumes are expected to fall 5% to 10% year on year as demand continues to be muted. The group’s focus for the next 24 months is to reduce debt, reduce head office expenses, complete the fleet efficiency improvement programme at Métier and continue to evaluate opportunities to enhance shareholder value.”

Mohuba said the company would not replace former board member Mpho Makwana, who resigned in early October.

Makwana had been on the board for more than five years.

He said board members Rose Raisibe Matjiu, who had been on the board since 2005, and Kenneth Capes, who was previously an executive director for business development, resigned on Monday. Capes had served on the board since 2013.

“Their active participation in the group has been gradually decreasing due to additional external commitments, hence their decision to resign from the board,” Mohuba said. The company said Capes would continue to consult for the group.

In the six months, Sephaku’s net profit increased 79.2%, from R14.8m to R26.5m. Basic earnings per share 75.9%, from 7.29c to 12.83c, and headline earnings per share 77.3%, from 7.10c to 12.59c.

Métier’s revenue rose 4.5% to R468m, while net profit fell 35.9% to R20.3m.

SepCem is a subsidiary of Lagos-based Dangote Cement and has a December year-end.