Italtile still seeking new CEO

Ravazzotti‚ who owns a controlling stake in the company‚ assumed management functions at the group following the death of his son‚ former CEO Gianpaolo Ravazzotti who died in a plane crash en route to Plettenberg Bay in February 2011. Eight other Italtile employees and business partners were also killed in the crash.

"Italtile's nominations committee has been tasked with interviewing and appointing a group CEO. This comprehensive programme is currently underway and is anticipated to be a lengthy process. It is anticipated that finality in terms of the board structure will be reached by the end of financial year 2014‚" the JSE-listed company said.

Ravazzotti will resume his chairmanship of the group once a permanent CEO is appointed. The company also said Brand Pretorius‚ who currently serves as an independent nonexecutive director‚ will be appointed independent nonexecutive chairman as of 1 July.

Italtile‚ whose brands include CTM‚ TopT and Italtile Retail‚ in February reported a 13.6% increase in diluted headline earnings per share to 24.2c for the six months ended December. System-wide turnover rose 10% to R2.04bn.

Constrained consumer spending has affected both the broader construction segment and retailers in the building material and renovations market.

The company noted that economic uncertainty‚ lack of job security‚ high levels of unemployment and indebtedness‚ and tighter lending criteria in the unsecured lending market also fostered the spending slowdown evidenced by markedly reduced footfall in certain of its regions.

Former chief financial officer Peter Swatton said trading conditions were not expected to improve in the short term. He added said that the weakened rand meant companies which were largely import-reliant would begin to see cost pressures‚ "I think an allegiance with a local manufacturer - which has always been our strategy - certainly stands the organisation in good stead".

Swatton left Italtile in April after 25 years with the company. He joined Italtile in 1988 and was appointed to the board and as CFO in 1992. He also served as CEO for two years. Swatton now serves as a nonexecutive director at Italtile‚ while Brandon Wood‚ a former audit manager at Ernst & Young‚ has taken over as CFO.

Italtile invested R529m to acquire a 20% stake in sanitaryware and tile manufacturer Ceramic Industries‚ which delisted late last year. The company is one of Italtile's key suppliers of tiles‚ sanitary ware and baths.