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Sephaku stock climbs on return to profitability

BDlive Staff Writer, November 20 2013, 13:31

SEPHAKU Holdings’ share price was up 1.4% in early trade on Wednesday after the construction materials group reported a return to profitability for its six months ended September.

CEO Lelau Mohuba said the positive performance was due to the group’s acquisition of Metier Mixed Concrete.

Sephaku achieved revenue of R301.6m — from no revenue for the comparative period in 2012. The comparative interim period is the six months ended December 2012, due to a change in the group’s financial year-end.

Mr Mohuba said Metier was “set to expand its market share in the lucrative Gauteng province in the next 12 to 18 months”.

Meanwhile, “significant” construction progress at Sephaku’s associate company Sephaku Cement’s plants “has firmly positioned the company as a new entrant into the cement manufacturing industry in South Africa since 1934″.

Sephaku reported operating profit of R33.8m compared with the operating loss of R10.1m previously.

The group said construction at the integrated cement manufacturing plant Aganang, close to Lichtenburg, was well advanced with initial production targeted for the second quarter of the 2014 calendar year.

Cement production at Delmas was targeted for January 2014.

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Bodibeng Trading Proprietary Limited

Founded by Mr Gaopalelwe Olebogeng from the Verdwaal Village in the North West province who is the sole managing member of Bodibeng Trading Proprietary Limited. Mr Gaopalelwe has previous experience in plant cleaning that he acquired during his tenure as a plant cleaner at another cement company in Lichtenburg. Bodibeng Trading Proprietary Limited employs 36 employees from the local community and currently has a short-term contract with SepCem which includes mentorship to ensure that it effectively provides the plant cleaning services at Aganang.


Mancamane Trading Enterprise

Mancamane is a black female-owned enterprise that started operating in 2010 as a plant cleaning, construction and mining supply company. Ms Daisy Maseko, a renowned entrepreneur, founded the enterprise in the Delmas area, Mpumalanga province and currently employs 28 permanent staff. SepCem adopted Mancamane into the enterprise development programme in 2014. The company is currently supplying plant cleaning services to the Delmas grinding plant and has demonstrated the ability to grow sustainably.


MM&JK Cleaning Projects Proprietary Limited

In 2014, SepCem contracted the cleaning services of MM&JK Cleaning Projects, an enterprise established in 2013 by Mr Sipho Mazibuko from a village called Springbokpan in the North West province. SepCem identified MM&JK Cleaning Projects as a well-managed enterprise that is appropriately suited to benefit from the programme. In the case of MM&JK, SepCem has partnered with another major industrial organisation to mentor Sipho.

The partner’s role is to assist MM&JK Cleaning Projects with inproving its cleaning skills through training, providing cleaning equipment and required detergents. SepCem’s role is to develop Sipho’s business management skills including cost management, record keeping and negotiation. SepCem is assisting MM&JK to develop a marketing strategy to increase its customer base to reduce the single-customer dependency risk and ensure that the company is sustainable. MM&JK Cleaning Projects currently has a three-year contract with SepCem for general cleaning at Aganang and employs 14 permanent staff.



Millicent’s Enterprise

Millicent’s Enterprise is 100% black female-owned and was founded by Ms Millicent Mahlabe, an entrepreneur from Delmas in the Mpumalanga province. The company was selected for the programme because it has historically demonstrated the ability to supply large contracts but lacks administration skills. Millicent’s has a good reputation and positive track record of being able to cater for large provincial government events.

SepCem secured Millicent’s catering services in 2013 for its canteen at the Delmas plant that provides meals to 150 employees. Millicent’s currently has seven permanent employees and several contract employees who are sourced as and when required.