Materials business Afrimat is a business I have analysed and reported on since its listing in November 2006, when it priced its shares at 500c to raise R125m to value the business at R621m. It’s come a long way, with its market value now about R4.4bn. At the time of listing Afrimat was mainly involved in aggregate stone products, ready-mix concrete and related concrete products. Its pro-forma listing revenue was R471m and its profit before tax R88m, with headline earnings of 50.5c a share. Today Afrimat is substantially larger, with revenues of R2.5bn and profit before tax of R324m. In early April the group issued a sparkling FY2019 trading statement, indicating its earnings for the year would be ahead by 20%-30% in what has been a tough time for the local construction sector. What has Afrimat done to set itself apart? The answer: its conservative and disciplined management. They are no-nonsense, cost-conscious mining engineers. In the run-up to the 2010 Soccer World Cup, as its com...

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