Industrial minerals and construction materials specialist Afrimat — which reported a 25% hike in earnings in the six months to end August — believes its solid operating margin can be further reinforced in second-half trading. Afrimat’s interim financial statements showed the operating margin firmed to 17.8% from 15.9% in the corresponding period last year. This meant operating profit increased an enviable 29% to R206m. Alpha Wealth portfolio manager Keith McLachlan said Afrimat’s interim numbers were excellent. "It’s a well-run company with a geographic and product diversification strategy that is working very well. Cash flows are strong too." Afrimat CEO Andries van Heerden said a strong all-round operational performance was helped by improved efficiencies, cost reduction and the disposal of marginal businesses.
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