Alert Steel Holdings Limited. JSE: AET
Background of Alert Steel Holdings
- Alert Steel Holdings Limited and its vast portfolio of subsidiary companies, engage in the retail of steel and steel related products primarily in South Africa. It is also a provider of building materials. Alert Steel Holdings Limited serves engineering, fabrication, manufacturing, construction, agricultural, mining, and parastatals and rural markets. The company was founded in 1979 and is based in Pretoria, South Africa. It was listed on the Johannesburg Stock Exchange in 2007.
Alert Steel Holdings share portfolio includes retailers in Randfontein, Tshwane, Brits, Hazyview and Polokwane, who serve as its retail wings. This is also where the company operates it’s 10 Alert Express stores.
- Adding to its vast activity portfolio, the Alert group is also a distributor of primary steel, hardware, building material, plumbing and sanitary ware. The group also boasts the addition of the processing of reinforcing steel and certain cold formed products to this group.
- Alert Steel offers solutions for both end users and contractors, provides in-house technical advice and training, across its retail, and services range. Stocking the latest range of castings, fasteners, precision and engineering tools and claims the largest range of welding products and plasma cutters in South Africa.
- The retail segment consists of three corporate brands, namely: Alert Build with 6 outlets trading in steel, building material and hardware. They contributed 47.9% to the group’s annual turnover. Alert Steel with 11 outlets trading in steel products. This section was responsible for 39 % of the group’s annual turnover. Alert Plumb consisting of 2 outlets which supplies plumbing products and sanitary ware. They contributed 6.2 % of annual turnover.
- Through its operating subsidiaries, Alert Steel Holdings is a large retailer of prime steel, building materials, plumbing and hardware products through its various 11 retail branches and 2 rebar manufacturing plants. The group is slowly migrating from steel sales in the main to the supply of building, plumbing materials and other hardware products. The group currently sells approximately 9 500 tons of steel per month.
Alert Steel Holdings Shares Growth Driver
Alert Steel Holdings Ltd announced the opening of its new large store in Pretoria, Polokwane, Lephalale and Brits. These stores have been strategically selected to meet the needs of customers throughout the country, in an expansion ploy looking to raise Alert Steel Holdings share price.
- The launch of the upgraded stores forms part of Alert Steel and Build’s goal to be a one-stop shop for both consumer and commercial buyers.
- The new store offers a more extensive purchase option and affords the customer a more comprehensive offering than what was previously available at Alert Steel and Build stores and stocks both day-to-day consumables and large-scale items. The megastore specialises in steel, timber, plumbing, hardware, paint, security products, home décor and building materials.
- Alert Steel’s store in Pretoria will have 109 showrooms that will be erected inside the building from January 2014. These showrooms will look to drive purchase sentiments by offering potential homeowners, architects and other customers a visual platform for purchasing their goods.
- All the products on display in the showrooms will be available from Alert Steel and Build and the model is designed so that customers can see an entire room that they like on the showroom floor and order it as is, or order components from the room that will best suit their needs.
- Alert Steel share price had a forecast of upward performance on the live charts when Alert Steel and Build CEO Peter Dodson explained the purpose behind the new megastore model. This was clear when he stated, “The establishment of new stores forms part of Alert Steel and Build’s progressive rejuvenating plans, announced earlier this year, and is designed to give us access to a broader consumer market.”
- The Alert Steel CEO and his team are in the process of implementing a number of new strategies to turn the business around and ideas such as the megastore offer growth opportunities, particularly in bridging the consumer and wholesale markets.
- As part of its business development plans, Alert Steel and Build has also established a graduate program to address the shortage of scarce and critical skills in the wholesale and retail sectors.
- Dodson believes the graduate program will create a pool of skilled workers with formal tertiary qualifications. His view is that it will also promote retail as a career choice, assist companies in meeting their staffing needs and provide unemployed graduates with valuable work experience and skills to enhance their employability.
- Alert’s new head office will be occupied as from the end of October 2009 and the additional 12000 m² of warehousing facility will enable Alert to make use of import opportunities and offer the market better service levels. It is also continuously considering geographic growth including options in neighbouring countries.
- Although Alert has succeeded in reducing its steel component in the business from ±77% to ±70%, its history, till today tells us, that is as its main revenue contributor. The extreme volatility in the steel trade markets has affected Alert Steel’s margins and Alert Steel’s shareholders. It is for this reason that Alert Steel is focusing on diversifying its portfolio.
- Alert Steel Tshwane, the retail wing of Alert Steel Holdings has entered into a three-year supply contract with Transnet July 2012. The contract pertains to the supply of Carbon steel to Transnet’s Koedoespoort and Germiston plants for three years. The total contract value is estimated to be at least R90 000 000 over the contract period.
Alert Steel Holdings Investor Tip
- It currently is not a positive thing especially in terms of dividends, but Alert Steel shareholders are to take notice of the announcement released regarding the business rescue proceedings of Alert Steel.
- The business rescue practitioner is currently awaiting capital payment for business rescue fees and expenses. Upon after, Alert should no longer be in financial distress, following which the business rescue proceedings will be terminated, according to the company.
- Shareholders are advised to exercise caution when in JSE live trade, in either putting up shares for sale or opting to buy until further announcement. Because of this, Alert Steel’s online data does not inspire strong buy sentiments, as its stock waits on the precipice.
Alert Steel Holdings Major Shareholders
Sector
Materials
Industry
Retail
How to buy Alert Steel Holdings Shares
Alert Steel Holdings : How to buy Alert Steel Holdings Shares Online
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