Un­equal and shared growth

Finweek English Edition - - Companies & Markets - SIKONATHI MANTSHANTSHA

THE LAT­EST AN­NUAL RE­PORT of build­ing ma­te­ri­als provider Afrimat makes for easy read­ing, with well laid out pages and nice pic­tures (not that share­hold­ers can be ex­pected to read an­nual re­ports for pic­tures). The whole re­port is 72 pages long but is com­plete, as it of­fers al­most ev­ery­thing re­quired in an an­nual re­port.

Afrimat CE An­dries van Heer­den and non-ex­ec­u­tive chair­man Matie von Wiel­ligh took time to de­liver short and suc­cinct re­ports with in­sights into the busi­ness. No less than three ac­qui­si­tions were made in the year to Fe­bru­ary, while some non-per­form­ing plants in both the East­ern and West­ern Cape were dis­posed of.

New quar­ries were com­mis­sioned in Gaut­eng (for the first time) and the West­ern Cape. In­vest­ment ex­pen­di­ture at a plant in Lady­smith added 90% ex­tra ca­pac­ity there, as the plant has been op­er­at­ing at full ca­pac­ity. All th­ese helped Afrimat pro­duce 4,4m t of ag­gre­gate, 0,2m cu­bic me­tres of ready-mix con­crete and 85m bricks in fi­nan­cial 2008.

The re­port also gives in­ter­est­ing in­for­ma­tion in the value added state­ment, where it states that R273m of value was cre­ated from R611m rev­enue. Em­ploy­ees re­ceived R97m (36%) of the value cre­ated in salaries and other ben­e­fits, with R85m re­tained for fu­ture growth. Con­sid­er­ing the group nearly dou­bled rev­enue in 2008 those fig­ures com­pare favourably to the R70m em­ployee costs of 2007 and R46m of re­tained funds, while share­hold­ers also ben­e­fited hand­somely from the 78% growth in div­i­dend pay­ments. One thing that Afrimat per­haps needs to ex­plain is why it reck­ons its chair­man must be awarded a 49% in­crease to R336 000 in direc­tors’ fees plus R33 000 for his role as re­mu­ner­a­tion and nom­i­na­tion com­mit­tee chair­man while other non-ex­ec­u­tives have to do with a 37% in­crease in fixed fees to R89 000. Mem­ber­ship of com­mit­tees guar­an­tees a di­rec­tor an ad­di­tional min­i­mum fixed R17 000, all the way up to R28 000. Should there be a need for any ex­traor­di­nary duty, direc­tors will be guar­an­teed a rate of R10 000/day.

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