Dave Erskine, CEO of ERB, said that the business was well positioned to take advantage of the unprecedented growth projected for the construction industry over the next three to five years.
Erbacon clients include parastatals, government departments, municipalities, road agencies and private property developers. Contracts are undertaken either with Erbacon as the main contractor or in partnership with or as a sub-contractor for larger national construction companies or listed multinationals.
Erskine said the AltX listing has several benefits.
"It will raise the profile of Erbacon and provide it with greater access
to capital markets and new business opportunities. It will also unlock and
create value for existing and future shareholders, and through the use of
share incentives, allow the group to attract and retain quality employees."
Revenue for the year ending February 2007 was R117,8m and is forecast to increase to R241,9m for 2008 and R299,3m for 2009. Attributable profits and headline earnings per share are forecast to increase from R11,6m and 11,37 cents in 2007 to R28,8m and 28,61 cents in 2008, and R36,6m and 32,88 cents in 2009.
Prior to the listing, Erbacon raised R53m in a private placement at R2,75 a share. The proceeds will be used to repay capital expenditure debt of R10m, with R20m allocated to funding organic growth and expansion, and R20m to be used for new acquisitions. – I-Net Bridge
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