Construction company almost doubles its profits
The listed construction materials company, Distribution and Warehousing Network, increased its profit by 49percent on the strength of a boom in construction and added revenue from ac-quired businesses.
Dawn's turnover went up by 37percent to R1,9billion for the six months to the end of December from R1,4 billion in the previous corresponding period.
Dawn's financial director, Dries Ferreira, said: "Most of our growth was organic, but we also annualised the revenue from acquisitions we made during the year."
The company made three acquisitions, Vaal Sanitaryware, Isca and DPI, however, 19percent of its growth was from operations.
The group has two main divisions, manufacturing (39percent of revenue) and trading (61percent of revenue) and exports 10percent of its goods.
"We had a period of rand strength that did not do well for our exporting business, but we've been looking at new product lines and managed to hedge effectively against rand fluctuations" Ferreira said.
With Dawn primarily being in manufacturing, it is one of the companies that is expected to take a knock as result of the electricity crisis.
"We cannot speculate at this point about our prospects this year, but we are confident that we will grow beyond industry averages," Ferreira added.