VENTURES: Finally A Shift At Tiletoria
Recent Western Cape Business News
IS Invicta finally about to make its big move in the tile and ceramics sector. CBN has previously reported how Invicta has been in no hurry to build on its Cape Town-based tile retailer Tiletoria, for which it paid R46 million for a 60% stake in 2007.
Once again in the latest annual report Tiletoria’s presence is a tad underwhelming with directors noting (again) that the business did not not make a material contribution to the group during the year to end March 2012. They did point out, though, that Tiletoria - which has branched off from its Cape base in Gauteng and Durban - was profitable and was projected to continue growing steadily.
But directors did admit to considering various means of enhancing Tiletoria’s profit contribution to the group. Unfortunately no further comment was added to this bold statement of intention. Perhaps the willingness to ‘enhance’ Tiletoria’s profit contribution follows a strong second half showing during the last financial year.
In the annual report directors noted that Tiletoria’s financial year started extremely slowly, but since August 2011 the company enjoyed a number of record sales months to finish the year strongly.
This is encouraging news, especially since Invicta acquired Tiletoria just before the broader construction and property development market slumped in 2008.
Whether Invicta would look at an acquisition or acquisitions to bolster Tiletoria’s market presence remains to be seen. Invicta has a superb track record in profitably enlarging market footprints by acquisition.
Intriguingly Invicta is trading under a cautionary notice relating to undisclosed negotiations. Although market sources are tipping a deal outside of SA, it might be foolish to entirely discount the company pulling off a significant tile deal this year.
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