Milestones 2005

Tongaat-Hulett Sugar

  • Well positioned to benefit from a new world sugar regime and to take advantage of changing global sugar fundamentals
  • Earnings growth acceleration with operating profit increasing by 183% to R232 million
  • Record sucrose production at Tambankulu Estates in Swaziland with a yield of 17,3 tons sucrose per hectare harvested confirming the estate's world-class status
  • Sugar production increased by 35% to 115 000 tons in Mozambique following improvements in cane yields, cane quality and factory recoveries, with the opportunity and capability to more than double production going forward
  • The first sugar from the new white sugar technology plant was produced at Felixton in November 2005
  • Tongaat-Hulett Sugar mills continue to sell renewable electricity into the national grid and two milk sold electricity to a "green" electricity trader for the first time in 2005
  • Sugar cane to the value of R211 million was purchased from historically disadvantaged South Africans in 2005, representing about 21% of total South African cane procurement
  • Huletts® once again excelled in the Sunday Times/ MarkinorTop Brands survey, being the only sugar brand to feature and improving its premium ranking in the food category from fourth in 2004 to second in 2005

African Products

  • An organisational restructuring was undertaken during the year, as part of the ongoing process to ensure operations are able to respond to the competitive environment, the benefits of which will be realised from 2006
  • Operating profit almost doubled to R112 million despite strong currency, import competition and volatile maize price 
  • Growth in new sales to the mining sector of 26% 
  • Significant progress in developing starch-based adhesives with growth of 123%
  • Extensive agricultural trials with a starch-based super absorbent polymer currently in progress
  • Successful alternative maize storage trials of 27 000 tons 
  • New maize procurement and product pricing model fully operational in 2005

Moreland

  • Third successive year of record operating profit of R231 million in 2001 with strong contributions from all portfolios
  • La Lucia Ridge Office Estate, Briardene Industrial Park and first phase of RiverHorse Valley Business Estate sold out with replacement stock being developed
  • Substantial progress made towards securing approvals for several key developments to be launched in 2006, including the Sibaya node at Umdloti, Umhlanga Triangle, Izinga, Umhlanga Ridge New Town Centre residential precincts, Cornubia at Mount Edgecombe North, Kindlewood at Mount Edgecombe South and Shongweni
  • The value of Group land further enhanced by recent announcements:
    • International five star Marriott and Fairmont hotel investments at Umhlanga Triangle and Zimbali
    • Gary Player appointed to design Zimbali Lakes Golf Course
  • First major South African land developer to achieve ISO 14001 environmental accreditation

Hulett Aluminium

  • Operating profit more than doubled from R150 million to R319 million
  • 20% sales volume growth in rolled products to 173 000 tons, despite disruptions in the supply of rolling ingot in the second half of the year
  • Sales mix improvements were achieved, including increased local market sales and exports of Treadbright® and can end stock growing by 27% and 33% respectively
  • Rolled product conversion costs per ton were reduced by 8%
  • Achieved 180 000 tons annualised rolled products sales volume in 4th quarter 2005
  • The plate plant expansion, which will increase high margin heat-treated plate capacity by 50%, is progressing well and will come on stream in the second half of 2006
  • Rolled Products achieved ISO 14001 environmental accreditation