The Bestway Group has announced its financial results for the year ended 30 June 2015. The Group’s annual turnover increased by 20% to £3.06 billion from £2.55 billion in 2014. Profit before tax for the year ended 30 June 2015 was up 39.9% to £373.8 million from £267.1 million in 2014.
Mr Zameer Choudrey CBE, the Group Chief Executive said, “The past financial year has been very exciting for the Group. Despite difficult business conditions we have maintained our focus on our strategic goals by increasing turnover and market share of our businesses both in the UK and in Pakistan”.
The Group also acquired an 88% shareholding in Lafarge Pakistan (now re-branded as Pakcem) for a total consideration of £182.0 million, of which £161.6 million is direct consideration and £20.4 million is existing debt within Pakcem, taken on by the Group on completion. Pakcem’s cement plant has a capacity of 2.4 million tpy and the acquisition has resulted in Bestway Cement becoming Pakistan’s largest cement producer, with an annual production capacity of 8 million t.
Mr Choudrey said, “Both the acquisitions were completed through a competitive bidding process where the Group saw off some major competitors. Despite the fact that the Group’s offers were not the highest, the Group was seen as the most credible party and the best fit to complement the existing businesses”.Recently, there has been a shift in market dynamics with domestic demand continuing to exhibit strong growth, while the export market has declined due to less activity in Afghanistan and the imposition of import levies in certain economies.
Consequently, BCL’s domestic despatches increased by 15.4% to 4.1 million t from 3.5 million t in 2014, with like for like sales up by 7.8%. Export despatches decreased by 7.9% to 772 000 t in 2015 as compared to 838 thousand t in 2014. Despite a decrease in exports to Afghanistan, we were able to maintain our position as the largest exporter of cement to Afghanistan.
Adapted from press release by Joseph Green
Read the article online at: https://www.worldcement.com/europe-cis/14012016/bestway-group-share-financial-results-317/