ChemSpec doubles its losses

ChemSpec chairman Ivan Clark said the improvement in revenue was important to note‚ despite the group's loss.

"The second half of the year was tougher than expected‚ with periods of slower trade in the US and Australia businesses and some margin issues in SA‚" Clark said.

"This was against the background of a longer-term decision taken by the board to increase leadership capability and sales resource capacity in anticipation of stronger performance. The result was poorer performance than expected for the second half‚ which momentarily halted our progress.

"While this is undoubtedly disappointing for shareholders‚ I must stress that the business is still in a turnaround phase where unforeseen market circumstances will inevitably affect short-term performance‚" he said.

He expected the company's next financial year to be buoyed by a strong performance from its new contract acquisition Jack's Paint.

"The Jack's Paint contract acquisition for the manufacture of its exclusive decorative paint brands has added value in that sector of the business and we will continue to improve our position in its 80 stores countrywide. We are developing numerous other opportunities in the decorative sector‚" Clark said.

He said that opportunities in Africa were being considered by all three of its technology and brand portfolio platforms.

The company said the US business had an excellent first half in which it grew by more than 30%‚ but this was followed by a weak second half‚ caused by generally poorer trading conditions in the automotive sector and the severe effect of super-storm Sandy on the group's largest customer in the US‚ leaving the company with flat sales on 2012.