Media

Infrasors sees gold in unglamorous rock

Business Day

July 17, 2007
By Abdul Milazi

DOLOMITE, sand and bricks are the new gold in the construction industry, says Infrasors Holdings CEO Le Roux Roets, whose company is set to list on the JSE at the end of the month with a market capitalisation of more than R1bn.

The Infrasors group, which includes subsidiaries Delf Sand, Lyttelton Dolomite and Infrabric, trading as K&F Bricks, owns and operates dolomite crushing, milling and bagging, sand washing, drying and brick-making plants in Gauteng.

“The group is well positioned to capitalise on its construction niche. “With anchor BEE partners Lereko Investment Holdings Limited represented by Dr Popo Molefe, Valli Moosa, Dr Lulu Gwagwa and Cedrik Mampuru, Infrasors stands to benefit from the construction boom, which is driven by the current demand for infrastructure in the country,” said Roets.

The company, scheduled to list on July 31, plans to raise R385m, which would provide sufficient capital to substantially increase production capacity.

Lereko CEO and former North West Province premier Popo Molefe said with SA hosting the 2010 Soccer World Cup, and the general demand for infrastructure, Lereko and Infrasors had established a long-term strategic relationship to supply much-needed resources.

“Lereko has identified sectors where it is best positioned to add value, based on the experience and background of its shareholders,” said Molefe.

“Partnering with key shareholders, Lereko aims to actively participate in enhancing the long-term value of each portfolio company.”

Roets said vibrant conditions in the building and construction sector had led to an increase in the base price of inputs such as industrial sand due to high demand and barriers to entry.

“This has benefited the Delf Sand operation, which contributes 35% to overall profit of Infrasors,” he said.

He said the group had shown significant growth and increased profitability over the past three years and had an uninterrupted profit history spanning many years.

The group reported revenue of R157m for the year to February and forecasts revenue to increase 56% to R245m next year . Infrasors forecast earnings a share of 37,5c next year to increase 23% to 46c in 2009.

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