Johannesburg, South Africa, August 15--Ceramic tiles and bathware group Italtile (ITE) reported a 25% increase in final headline earnings per share to 1 069.1c for the year ended June 30 2005 from 856.3c a year ago.
The group declared a final ordinary dividend of 160c per share, which together with the interim ordinary dividend of 110c produces a total ordinary dividend for the year of 270c per share from 160c in 2004.
The group said it remains a strong cash generator and continues to accumulate cash reserves in excess of operating requirements and consequently, a special dividend of 330c per share has also been declared.
Turnover improved by 25% to R1.96bn from R1.57bn previously, while trading profit increased by 28% to R274.5m from R213.7m. Headline earnings grew 26% to R190.0m from R1511m a year ago.
Chief financial officer Peter Swatton said: "These results are a reflection of the group's successful evolution from niche tile merchant to specialist home-enhancement fashion retailer.
"Growth was simultaneously driven by increased volumes out of existing stores, and the emerging trend by consumers as they graduate across our product offering to buy a wider range of higher priced commodities."
Swatton noted that during the review period no price increases were implemented and no new stores opened.
He added: "Contributing to the strong growth of the business's bathware component was the integration of recent acquisitions, International Tap Distributors and Earlyworks, distributors of taps and tiling tools respectively.
Swatton said that the company's strategic imperative to increase black ownership of the business continued to reap rewards which was attributable to "franchisees' affintity" for the "communities which they serve".
He said that Italtile's empowered partners will continue to play a vital role in the group.
Looking ahead, Swatton said it is anticipated that growth in the new residential and renovation markets will continue to be buoyed by the favourable trading environment.
Stable interest rates, consumer confidence and the significant economic impact of the emerging middle class will continue to drive the expansion of the industry.
"Equally, these conducive conditions will continue to spawn new competitors and the group recognises that it will need to be vigilant against complacency to ensure we retain our leadership status in this highly competitive market."
The group anticipated that growth will be achieved across the its businesses, with an increasingly enhanced contribution derived from the bathware component.
