Revenue
2014
Operating
profit 2014
Revenue
2103
Operating
profit 2013
Waste
management
676 330
46 024
529 761
23 736
Compost
manufacture
40 989
(1 215)
42 855
(6 553)
Landfill
management
117 155
39 207
115 626
33 269
TOTAL
834 474
84 016
688 242
50 452
"
We could drive earnings up tomorrow if we stopped
investing in greenfield operations for the future,
André Broodryk, group financial director
At earnings per share level the
growth figures were lower (11.2cps,
up 31% from 8.5cps in the previous
comparable period) as a result of
the increased number of shares in
issue following the capital raisings
in 2013 and 2014. In 2013 the
company raised R50 million and last
November it raised a further R91
million through share placements.
Hubbard expects earnings for 2015
to increase by 13.6% to 12.5c. “This
is slower growth than we would
have expected, but manufacturing
in SA has slowed down.”
This is not a major concern. “This
is a different company to what
it was four to five years ago,” he
says. “It was always innovative
and entrepreneurial, but there
were ongoing accounting issues –
impairments and write-offs. These
have been resolved.
“We have put in proper accounting
systems, changed auditors and
added some corporate governance,”
adds Broodryk. “We don’t fight the
numbers anymore.”
The management team has also
turned its attention to geographic
expansion and has established
bases in Mozambique, Tanzania
and Kenya. “There is so much
opportunity – from the oil industry
as well as other multinationals,”
says McNeil. “None of those
countries have hazardous waste
facilities – yet all of them are
producing it.”
The market is there, and is growing.
With the right combination of
scientific advancement, capital
allocation and progressive sales
Interwaste should continue to enjoy
annual double-digit growth.
Not bad for a company on a PE
of 10.8. ■
ISSUE 4 – JULY 2015
23