African Oxygen Limited (Afrox) say they have continued to produce sound results in a buoyant manufacturing economy where demand for certain gas products outstripped supply.
The compnay's accounts show revenue was 17 percent higher than last year at R2.1 billion ($304m) with profit from operations at R392 million ($57m), an increase of 23 percent. Net profit for the period was 18 percent up at R240 million ($35m)
Explaining this years results Afrox say $quot;the buoyant demand situation in the reporting period produced challenges for the business from a supply perspective.$quot; As previously announced, the company embarked on an extensive investment programme initiated during the 2006 financial year. As a result, the capital expenditure for the six months, of R400 million ($58m), is significantly higher than the R200 million ($29m) for 2006.
They believe this project, $quot;will go a long way to meeting future demand. The initial benefit of this capex programme can be expected in the second half of 2007.$quot;