Group revenue increased 19% to R5,6 billion whilst operating profit rose 17% to R2,2 billion.

Cement margins were impacted by the dilutionary effect of imports at little or no margin, and by increased energy, transport and maintenance costs.

Lime revenue and operating profit improved significantly over the prior year as the benefits of renegotiated long-term sales supply agreements flowed through for the full year.

The aggregates operations experienced another year of strong volume growth and both Gauteng quarries approached full capacity.

In line with IFRS 5 (Non-current assets held for sale and discontinued operations), Afripack (Pty) Limited was consolidated as an asset classified as held for sale for the year ended 30 September 2006. During October 2006, the preference shares were redeemed and Afripack (Pty) Limited’s results deconsolidated.

Consistent with 2006, the results of Porthold, a wholly-owned Zimbabwean subsidiary, have not been consolidated into the group.

Inventory levels increased as higher levels of maintenance and consumable stores, coal and raw materials and imported cement stocks are necessary at this time of higher output levels and logistics complexities.

The directors have declared an increased final dividend of 166 cents per share (2006: 110 cents per share; 2005: 84 cents per share). In addition, the board approved the payment of a special dividend of 61 cents per share (2006: 77 cents per share; 2005: 80 cents per share), effectively distributing all current year earnings of the company to shareholders.

The directors have reviewed and amended the target dividend cover to a range of 1,2 to 1,5 times, up from the historical cover of between 1,5 and 1,6 times. In addition, in any given year, the directors will consider an additional distribution to the shareholders of cash that is surplus to requirements.