Author Archives: IJGResearch

Afrimat released a trading update this morning, expecting basic and headline earnings per share for the 6 months to be up between 20% and 30%. The performance was on the back of strong performances from both “Mining & Aggregates” and “Concrete Based Products”.  Concrete Based Products was however negatively impacted by a strike at the Gauteng operation that impacted costs.

Annualizing the guidance range of 59cps to 64cps suggests full year EPS of 118cps to 128cps, which is higher than the current Bloomberg consensus of 110cps. The guidance range also prices the company at a PE of 14.0x to 12.9x.

Results are due 6 November 2014.

Afrimat is one of our preferred small cap exposures, ranking high on the momentum factor model.