Mazor cuts costs as it prepares for another tough year

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Mazor cuts costs as it prepares for another tough year

Published Date: 2019-05-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Mazor cuts costs as it prepares for another tough year

The steel, aluminium and glass group says its tendering for as many contracts as possible in a constrained market.

Mazor Group is feeling the full impact of the decline in the construction sector. With the industry under immense strain, it says a number of businesses, big and small, have been liquidated due to the lack of demand.

The company, which designs and installs structural steelwork and aluminium facades, said there were fewer new building starts across all regions of the country last year and it believes it will take time until demand outstrips supply. In the meantime, it's seeing where it can cut costs and is tendering for as many contracts as possible in a constrained market. While all areas of its business have been affected, it said its glass division was expected to help sustain margins and efficiencies in the year ahead.

Revenue from contracts with customers fell 6.4% to R399 million in the year to end-February. Higher finance costs and a decline in investment revenue left it with a R16.3 million loss for the year, up from 2018's R0.9 million loss. Its headline loss per share swelled to 15.3c from 0.8c.

Its shares didn't trade yesterday, closing unchanged at 99c.





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