The company reported a 13% increase in headline earnings per share from 10.3c to 11.6c for the year to December‚ driven by increased profitability and the effect of share repurchases.
Raw and value-added wood-based panels‚ which the group distributes‚ are used for a variety of purposes in the construction‚ furniture manufacturing‚ kitchen and shop fitting industries.
Revenue increased by 13.9% to R550.9m from R483.6m the previous year. The group experienced pressure on gross margins during the second half of the 2012 financial year resulting in gross profit for the period being just 12.2% above that of the previous year.
"The lack of selling price inflation as a result of the oversupply of wood-based panels continued to hamper sales growth‚" KayDav said.
Although the building material and renovations market has fared slightly better than the broader construction segment‚ with many firms benefiting from the lucrative home improvement and DIY sector‚ it remains fragile because consumer spending is under pressure.
The group had a net tangible asset value of R114.8m at end December. It made a capital distribution to shareholders of 6c per share.
The company operates under the trading names Davidson's Discount Boards and Kayreed Board and Timber‚ with outlets in Gauteng and the Western Cape. The group‚ which was formed in 2007 by the merger of Davidson's Discount Boards and Kayreed Trading‚ opened a Davidson's Discount Boards branch in Durban, which began trading on October last year.
Operating expenses increased by 11.5% to R139.5m compared with R125.1m in the previous period‚ it said.
Meanwhile‚ profit before taxation increased by 18.8% to R28.5m for the year‚ while the increase in total comprehensive income for the year was lower at 11.9% as a result of an increased effective tax rate of 29% compared with the 24% for the year ended December 2011.
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