OREANDA-NEWS. JSE-listed open pit mining company, Afrimat, increased revenue by 5,1% and operating profit by 21.9% for the year to February 2015 ("the year"), reflecting the successful continued execution of its diversification strategy. As in the prior year, the group benefitted from the strong performance of its newer industrial minerals operations as well as an uptick in its traditional aggregates business.

Revenue of R1 998.6 million is up 5.1% from R1 901.2 million the prior year, with the contribution margin increasing to 13.7 % from 12.0% in 2014. Contribution from operations grew to R273.7 million from R228.3 million at February 2014. Profit after tax was R200.3 million, an increase of 22.9% on the prior year.

Headline earnings increased by 24.4%, translating into headline earnings per share of 135.6 cents compared to 109.0 cents in the previous year. This growth is attributable to focused operational improvements. Cash from operating activities amounted to R261.6 million, up 7.3% on 2014. Net asset value ("NAV") per share was up to R6.56, an increase of 13.3%.

Afrimat declared a final dividend of 37.0 cents per share bringing the total dividends for the year to 50.0 cents per share, 28.0% up on the 39 cents per share distributed in respect of 2014.

According to van Heerden, the year was further underpinned by increased Government spend on road maintenance and smaller service delivery projects, which Afrimat, due to its extensive geographic footprint, was able to benefit from.

The Mining and Aggregates segment made up 80.5% of the contribution from operations in the amount of R220.3 million, up from R195.2 million in 2014. This is attributable to a strong performance from the Clinker operations and Glen Douglas as well as a good recovery in the traditional business in the KwaZulu-Natal and the Western Cape regions.

The Concrete Based Products segment contributed 20.1% of the contribution from operations to the value of R55.1 million, compared to R30.4 million in the previous year. These increased profits emanate from cost-reduction initiatives and successful market penetration. During the 2014 financial year the segment was hit by strike action at the SA Blocks operation, which caused a reduction in profits.