Sephaku embarks on cost-cutting drive
Building and construction-materials group says it will not replace departing board members to reduce costs
Sephaku Holdings, which has a portfolio of assets focused on the building and construction-materials industry, has embarked on cost-cutting measures that include reducing the number of board members from 10 to seven, says CEO Lelau Mohuba. The reduction of the company’s head office expenses is meant to soften the effect of difficult trading conditions in the second half of the current financial year.
The company, the portfolio of which includes subsidiary Métier Mixed Concrete and associate Sephaku Cement (SepCem), said on Tuesday it expected the constrained trading environment to persist. The group said mixed concrete supplier Métier had been negatively affected by the depressed construction sector. “Industry cement volumes are expected to decrease by between 5% to 10% year on year as demand continues to be muted. The group’s focus for the next 24 months is to reduce debt, reduce head-office expenses, complete the fleet efficiency-improvement programme at Métier and continue...
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