Johannesburg - Tile retailer and franchisor Italtile, which has entered into talks around “potential corporate action” expects its first half to be more prosperous than the second six months of the year.
This comes as it grows sales at a pace that outstripped its own inflation figures, and were not bolstered solely by new outlets.
In the six months to December, the company - which says trading conditions were on par with recent years as it again experienced moderate demand in the renovation and commercial markets - reported turnover up 13 percent to R3 billion.
Same store revenue gained 11 percent, which indicates real growth, stripping out new stores and inflation of 4.7 percent, gained 6.3 percent in the interim period.
During the first half, Italtile opened six new TopT stores and one CTM store, taking the total network to 133 stores from 126 stores at year-end.
Also read: Italtile to open more stores
Italtile’s brands include CTM, Italtile retail and TopT, which are represented through its network of 133 stores, 16 of which are located in the rest of Africa.
Trading profit gained 16 percent to R531 million, while profit from associates grew 63 percent to R44 million. This translated into a 21 percent increase in profit after tax, which gained to R430 million.
Its associates include stakes in Ceramic and Ezeetile.
Italtile told shareholders on Thursday that basic earnings per share increased 21 percent to 44.3 cents, while headline earnings per share - seen as a key indicator of a company’s performance - gained 22 percent to 43.4.
The listed company, which declared a 14 c a share dividend, adds it will continue to expand its business, including investing in areas such as systems, technology and human resources. “Italtile's cash reserves will support this strategy.”
Its share price gained 0.44 percent to R11.35 by mid-afternoon yesterday.
IOL