Accéntuate sees signs of potential growth for SA construction sector
The group, which among other things provides flooring, saw operational profits fall almost a third in its year to end-June as Covid-19 hit activity
Accéntuate, whose business interests include flooring, water treatment and cleaning products, says it is seeing early signs that construction and infrastructure activity is picking up in SA after taking a hit from Covid-19.
The group’s operating profit fell almost a third in its year to end-June, with Accéntuate saying the pandemic added pressure to an SA economy already under pressure from a lack of any real growth or infrastructure spending.
However, the group said on Friday it is experiencing early indications — certainly better than have been seen in the past five years — of potential growth within the infrastructure and construction sectors.
The group’s operating loss widened by 31% to R29.9m in the year to end-June, which compares unfavourably with its R24m market capitalisation on Friday morning.
A volatile rand and the rising price of oil is negatively affecting petrol and diesel prices as well as petrochemical derivative input costs in both the group’s chemical and flooring manufacturing facilities, Accéntuate said.
Revenue fell 30% to R119.56m, while its headline loss per share improved 3% to 15.15c.
Accéntuate’s share was unchanged at 13c in morning trade on Friday.
The group’s share is somewhat volatile, having tripled in 2020, but also having fallen 81% over the past three years.
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