Iliad to concentrate on retail business: CEO

The company‚ which released its results on Monday‚ also gave details on the decision to sell its wholesale timber business to the York Timber group‚ as Iliad looked to focus as a traditional retailer.

"We want to stick with our retail businesses where we believe a strong diversified portfolio has enabled us to achieve good results‚" Beneke said.

Iliad listed on the JSE in 1998 and has since then shifted its focus from sourcing‚ distributing and wholesaling general and specialised building materials to retailing.

The group operates in the general building materials market and specialised building materials markets.

Beneke said both had performed well.

In the financial year to December‚ Iliad recorded earnings of 24.3c per share for the year‚ compared with a loss of 174.9c per share for the same period in 2011.

The earnings included a R30.4m impairment of intangible assets‚ relating

to the Thorpe Timber and National Tile Traders businesses.

Excluding these once-off portfolio rationalisation and impairment charges‚ the group recorded an EBITDA of R146m for the year to December‚ compared with R113.2m for the 2011 period.

"These results are much to do with the diversity of the business.

We meet regularly to discuss the diversity of the portfolio assets to remain dynamic as a company.

"Our group revenue grew 10% in the first half of the reporting period‚ before ending up at 6%‚ growth‚ showing industry trends had softened‚" Beneke said.

He said Iliad's 2012 performance was not necessarily yet indicative of a rebound in the construction and building industries.

"We should get gradual but not exponential improvements in the industry in the next few months‚" he said.

Last week Distribution and Warehousing Network CEO Derek Tod said infrastructure spending by municipalities picked up last year and this was helping the building industry.

A deal whereby JSE-listed York Timbers would buy Thorpe Timber and Timber Preservation Services was concluded following the finalisation of Iliad's results.

York Timbers is SA's largest private sector solid wood processor.

It bought Iliad Africa's timber wholesale businesses for R45.5m in cash.

Iliad's timber wholesale assets which were sold‚ comprised Germiston-based Thorpe Timber‚ a manufacturer and wholesale distributor of timber‚ and Cape Town-based Timber Preservation Services‚ which operated a timber value adding‚ treating and wholesale distribution business.

"The sale makes sense as our timber businesses had missed their objectives and were not strategically part of our future‚" said Beneke.

Commenting on the transaction‚ York CEO Pieter van Zyl said: "This acquisition enhances our products and services offered and expands our geographic footprint across the country. This acquisition is firmly in line with our growth strategy‚ which is premised on industry consolidation‚ diversification of our revenue stream and optimisation of our biological assets."