JSE-listed automotive component manufacturer Metair on Friday reported 26% revenue growth, an 25% increase in gross profit and a 12% rise in headline earnings per share for the six months ended June.

Revenue climbed to R2.59-billion from R2.05-billion in the comparable period and gross profit rose to R585-million from R468-million. Headline earnings per share increased to 143c in the first six months of the year.

The company’s total assets increased to R3.24-billion from R2.48-billion at the end of 2011, with the acquisition of Romanian battery manufacturer Rombat contributing R695-million of the increase. Of this, R63-million was allocated to intangible assets.

Cash and cash equivalents net of debt and overdrafts was negative R18-million at the end of the period compared with a positive R345-million at year-end.

Metair said capital expenditure of R88-million was incurred, tax payments of R98-million were made and a dividend of R132-million was paid during the reporting period, while the R449-million acquisition of Rombat was funded from cash resources and debt.

The acquisition was successfully concluded in March, with Metair purchasing 99.16% of Rombat as part of its start/stop battery development and commercialisation programme.

The group generated earnings before interest, taxes, depreciation and amortisation of R397-million and cash from operations amounted to R455-million.

Net asset value increased to R11.99 a share from R11.19 a share at year-end.

“The group has produced a satisfactory set of financial results for the half-year,” CEO Theo Loock said.

MARKET

Local vehicle production during the reporting period declined by 2.1% to 235 557 vehicles from the 240 721 vehicles produced in the comparable period.

However, South African vehicle sales increased by 9% from 272 946 in the previous period to 298 883, which bodes well for the aftermarket segment.