Rolfes is no equity market giant, weighing in with a market cap of only R895m and annual revenue of about R1.7bn. But when it comes to what counts — growth — the specialty chemicals sector player is punching well above its weight. Under the leadership of CEO Lizette Lynch since July 2015, Rolfes has been delivering the goods, lifting headline EPS (HEPS) by 30.4% in its year to June 2015 and by another 39% in its past year. Keeping up this cracking pace, Rolfes delivered a 34% rise in HEPS in the six months to December. Growth to December was far stronger at the operating-profit level, with a rise of 62% to R97m. Providing the big kicker was wholly owned food chemicals importer and distributor Bragan, acquired in October 2015 for R213m.
Rolfes also used the deal to significantly enhance its BEE standing. As part of the funding of the cash deal it raised R145m through placement of shares with two black-owned firms, lifting its BEE profile to more than 51% of its equity. Though t...
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