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Bristile tipped to double earnings

WA BRICK and tile manufacturer Bristile Ltd – currently embroiled in a takeover of Wesfi – has been forecast to double its earnings in the current fiscal year by expanding interstate.

The group, which includes Metro Brick and Bristile Clay

Tiles, has bought Pioneer’s brick operations in Victoria, South Australia and Tasmania, roof tiles in Victoria, concrete masonry in Victoria and sand operations in South Australia for about $150 million.

This will be funded by debt, a 14.56 million share placement at $1.20 per share and a two for five rights issue at $1.15 per share.

Bristle managing director David Gilham told Business News the sale had been completed and the assets had become part of the Bristile group.

“As far as future expansion is concerned, we have a bit of work to do at the moment,” he said.

“Our focus now will be on consolidating what we have acquired.”

Mr Gilham confirmed the takeover of Wesfi closed off late last year and Bristile now held 38.7 per cent equity in the company.

According to financial analysts, Bristile has forecast a profit rise of over 50 per cent in 1999-2000 financial year.

In the previous financial year, the company recorded a preabnormal net plus 66 per cent increase in profits to $14.1 million or 16 cents per share.

It is anticipated that further growth for the group will be derived from the WA housing industry which is still buoyant, with BIS Shrapnel forecasting a 10 per cent increase in dwelling commencements in 1999-2000.

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