AN EXTRAORDINARY ACHIEVEMENT
Afrimat results show that the company is able to do what few others can – make real profits in the construction sector. A simple business that supplies stone has resulted in R1bn in revenue for the six months to August. Afrimat does a lot right: it sticks to its job, keeping it simple, and it ’s more than happy to take on smaller contracts that the big players reject. The company has also been smart with its quarries. When you sell stones, the biggest expense is moving them to where they’re needed so the position of the quarries is critical. Lastly, Afrimat has been extra smart in the acquisition space, making very few acquisitions, but all have worked out incredibly well. the extremely cheap EasyEquities platform. But what it desperately needs is scale, and with a modest R405m in assets under management at Emperor Asset Management, and EasyEquities aiming at smaller transactions, that scale is proving tough to f ind. In the asset management space it’s about how much you have under your control, as this is where fees are generated. An increase in assets under management makes more revenue with little cost increase, in other words, awesome operating leverage. The R405m at Emperor Asset Management is up 54%, but the group needs to get it into the billions.