Firms like Afrimat look cheap, but with little indication of when the construction market will pick up, it is probably too soon to invest in them The slump in the construction sector is crippling the profits of building material suppliers. With little indication of when demand will recover, companies are bracing for yet another year of tight margins. Firms like Afrimat look cheap, but with little indication of when the construction market will pick up , it is probably too soon to invest in them. Afrimat's share price has risen more than its peers' but price competition and lower volumes remain an area of concern for the Ready Mix Concrete division. Divisional revenue for the six months ending August 2010 decreased by 8% to R87m, while operating profit fell 74% to R1,6m, resulting in a significantly lower operating margin of 2% (2009: 7%). The group as a whole reported a subdued set of results for the same period. Revenue was 16% higher at R456m supported by an upturn in ...
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