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Hardware supplier lists on AltX

18 Sep 2007

A supplier of affordable building materials, such as cement, corrugated iron roof sheeting, doors, windows and timber, will be listing on the Alternative Exchange (AltX) of the JSE by way of private placement on 28 September 2007.

This will be the second AltX listing for a company from the Eastern Cape this year.

The JSE has formally approved the listing of 80m ordinary Hardware Warehouse shares from which R15m will be raised.

"We currently operate from 12 stores and have identified a number of target areas for further expansion in South and Southern Africa," Shaun Miller, CEO of Hardware Warehouse, said.

The listing will enable Hardware Warehouse to, amongst others, fund future growth and stockholding to supply the local building industry, undertake government low-cost housing and community projects, to fund credit extension plans and to incentivise and retain key staff.

Hardware Warehouse, established in 1996 in King Williams Town, provides affordable building materials to the rural communities of the Eastern Cape on a cash basis. Currently, the company has stores in King Williams Town, Alice, Butterworth, Port Alfred, Mdantsane, Ngcobo, Mthatha, Cofimvaba and Lusikisiki.

Hardware Warehouse also plans to expand into KwaZulu-Natal and Lesotho in the short term. The company has acquired its first store in Mtubatuba, which will be used as the beachhead for further expansion in this region.

The short to medium term plan includes expanding the company's footprint into the Mpumalanga and Limpopo provinces and in the longer term to move into Southern African countries, such as Namibia, Botswana and Mozambique.

The South African building materials industry is worth approximately R33bn per annum, which amounts to half of the entire value of the building industry. The main driving forces within the LSM 1-5 building materials industry are the increased title to land and bank's commitment to provide home loans in rural areas, higher levels of personal spend and personal aspirations associated with such a buoyant economy and government's low cost housing initiative.

"We are delighted to be listing on AltX. Since Hardware Warehouse was established, the company has grown from strength to strength and this is the logical next step to fully utilise our growth opportunities" Miller added.

Hardware Warehouse's 2007 revenue was R126m, with forecast revenues for 2008 of R197m and R268m for 2009.

For more information contact 043 726 6341 or click here to visit the website.

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Hardware supplier lists on AltX

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