On the back foot
The sorry story that is the PPC share price continues as the stock traded just above R20, a level last seen back in 2004. The boardroom problems may have been resolved, but local operations continue to struggle with moderate demand, lots of competition and ageing plants that really put the company on the back foot. The Afrisam merger may help a little but it doesn’t solve the problems of imports and new kid on the block Sephaku Cement. The Competition Commission may also scrap the deal. Its African expansion plans remain on track, but these new markets that the company is moving into are going to be very tough. In short, we can expect more pressure on the share price until we start seeing real evidence of improvements in revenue and more importantly profits.