Italtile reinstates R800m worth of expansion projects

Business

Johannesburg – Italtile – whose brands include CTM,Italtile Retail, TopT and U-Light – has reinstated R800-million worth of expansion capital projects that were temporarily deferred due to the lockdown and trading restrictions in the first half of the 2020 financial year.

As a result, the group said yesterday it had incurred R359m of capital expenditure in the six months to the end of December, up from R340m compared to last year.

According to chief executive Jan Potgieter, the group will continue to roll out capital expenditure projects, with R450m committed for the second half of the 2021 financial year, and would open new stores where proven demand existed.

“These projects include the commissioning of revolutionary technology and equipment in the Samca floor tile factory; relocation of Ezee Tile’s primary manufacturing facility to a new owned-site; the construction of a new fully automated dark warehouse for Betta sanitaryware, which will resolve capacity constraints; and development of a retail store node in Boksburg, which will feature all of the group’s retail brands,” said Potgieter.

Looking ahead, Potgieter said the management was optimistic about the group’s growth prospects, and the firm had development strategies to optimise on opportunities presented.

“Under current trading conditions and Covid-19 related restrictions, we anticipate that the group will deliver double-digit sales and profit growth for the forthcoming six months. However, should conditions deteriorate and/ or trading restrictions be intensified resulting in an adverse impact on our operations, this guidance will no longer apply,” said Potgieter.

The group’s shares closed 3.87% lower at R17.40 yesterday.

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