Small-cap building and construction materials group Sephaku Holdings (SepHold) says a rebound in building activity helped it more than double profit in its 2022 year, but central bank moves to combat inflation will inevitably hit demand unless the state picks up the pace of infrastructure spending.

The initial optimism in the industry at the start of the year has now fizzled in the wake of Russia’s invasion of Ukraine, while surging input costs are setting the stage for more regular price increases. This will have an uncertain effect on volumes in a competitive industry that has not fully recovered from Covid-19, the group said on Thursday...