Accentuate set to put focus on water treatment
INFRASTRUCTURE group Accentuate is set to shift its core business to water treatment in the next three years, as demand in the sector explodes in SA, CEO Fred Platt said yesterday.
Mr Platt, who was speaking at the release of the group’s annual results for the year to June yesterday, said that over the past 10 years the group had realised there was tremendous space for it to benefit from water treatment related to infrastructure development in SA.
Accentuate’s main businesses are flooring, chemical blending and water treatment. A joint venture Accentuate had created with an Indian water treatment company was already reaping benefits.
The JSE-listed group’s earnings per share grew 16.6% to 8.38c in the period. Revenue was maintained at R284m and attributable profit climbed 18% to R8.8m.
Safic, a company within Accentuate, created a joint venture with Indian water treatment company, ION Exchange last year to form ION Exchange Safic.
The joint venture secured a num- ber of successes over the year, including the provision of drinking water and water recycling plants, as well as the supply of various products resulting in significant process improvements.
Accentuate also supplied effluent treatment chemicals and equipment which had significantly reduced penalties paid by these customers to local municipalities. Mr Platt said the partnership was on track to become a significant player within the water treatment market in SA and across Southern Africa.
“Eventually, infrastructure development has to kick in in SA and we will be ready for it,” Mr Platt said. Maintaining a clean but abundant water supply is a challenge for SA.
Looking at the group as a whole, Mr Platt said the results for the year were solid, but there was room for improvement. “I still believe we can generate stronger earnings growth. We have remained focused on the foundations across the flooring, chemical blending and water treatment businesses, which have delivered a solid performance,” he said.
Mr Platt said strategic positioning plans had been implemented, and were showing good results throughout the group. In the flooring business, the plan to expand the level of business in the private sector was producing results. The acquisition of Suntups would drive this private sector focus further by significantly increasing engineered wooden flooring in offices, malls, gyms and upmarket housing developments.