Building Supply Group (BSG) is the holding company of the MacNeil group and the Tiletoria group of companies. The BSG operates
from over 130 000m2 of distribution facilities, employs in excess of 1 000 staff both nationally and internationally, imports in excess of
4 000 containers of building material products annually and exports in excess of 2 500 containers annually. The group has its own inhouse
procurement facilities in Malaysia, China, South America and Mauritius. Our distribution abilities throughout South Africa and sub-
Saharan Africa are a major strength, as all vehicles and distribution centres are controlled and owned by the group. Consistency and
reliability is a core focus of ours. With our in-house freight and logistics operations we provide full turnkey solutions when it comes
to supplying building materials worldwide. We provide daily delivery service through “Brands 4 Africa”, our African export business, to
a number of cross border countries including Namibia, Botswana, Zimbabwe, Zambia, DRC and Mozambique.
Tiletoria was established in 1995 as a flooring specialist in the Western
Cape. In 2007, Invicta acquired a controlling stake in Tiletoria. The
group has seen significant growth over the past eight years.
Tiletoria has cemented itself as one of the largest flooring solution
businesses in South Africa with four major outlets in Cape Town,
Johannesburg, Durban and Port Elizabeth. A new specification store
(“Spec Studio”) in Johannesburg was launched in April 2016. The
store has secured some of the best staff in the specification industry
which will enhance value add to our customers. Tiletoria is also at an
advance stage of opening a retail presence in Umhlanga servicing the
Tiletoria’s extensive product offering, which includes ceramic and
porcelain tiles, laminated flooring, vinyl flooring, engineered flooring,
bathroom accessories, sanitary ware, showers and an extensive tap
range, are readily available nationally.
The financial performance of Tiletoria was encouraging in a difficult
economic environment, with revenue up 5% and operating profit up
36% year on year.
Management has embarked on a further growth strategy for the
Tiletoria group and the following focus areas to be implemented to
ensure the group continues to provide improved shareholder value:
||Improved value added services to our customers
||Implementation of sustainable cost savings in the upcoming
||Improve stockholding holding
||Reduce our working capital requirement to improve the liquidity
of our group
||Increase our African footprint in regions such as Namibia and other parts of Africa
||Unveiling our new branding in our Tiletoria division including the launch of a new showroom in the Cape Town branch, and Umhlanga retail showroom
The group has established a good platform in FY2016 to set an exciting
basis for the next three years, that will take the group to a completely
new level in terms of product offering and value added services. We
believe this will yield improved results for all our stakeholders.
This is the third full trading year for the MacNeil group of companies
since the acquisition by Invicta.
It was certainly the most challenging year to date for the group. As a
major importer, rand weakness had a negative effect on margin as did the inability to increase prices into a very challenging and competitive
retail market. Volatility in currency and commodities created a very
unstable trading environment. Labour market and power supply
remained challenging, especially in our manufacturing division which
was adversely affected. Despite the challenging environment reflected
in our results, revenue was up by 9% but with operating profit down
27.8% year on year due to forex losses and lower trading margins.
MacNeil continues to consolidate operations and focus on
stockholding, cash generation and debt reduction. The plastic’s
manufacturing plant is now achieving sustainable production volumes
and effective management has led to a reduction in headcount
together with a saving in operating costs.
MacNeil completed the construction of its new 4 000m2 distribution
facility in Durban in November 2015.
MacNeil has commenced with an ambitious R150 million development
of its new 18 000m2 distribution facility in Samrand, Gauteng, via
Invicta Properties. The new facility will house MacNeil JHB, Brands
4 Africa (Exports) and DCLSA. This will bring about significant
operational and supply chain efficiencies through consolidation. This
project is expected to be completed during the fourth quarter of
Map of BSG distribution network