https://www.engineeringnews.co.za
Environment|Services|Infrastructure
Environment|Services|Infrastructure
environment|services|infrastructure

Long4Life records reasonable interim performance in tough environment

14th October 2019

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

Font size: - +

JSE-listed Long4Life delivered a reasonable performance for the six months ended August 31, given the difficult trading environment.

Revenue increased by 20% year-on-year to R1.84-billion, while gross profit increased to R718.9-million, compared with the R627.5-million gross profit reported for the six months ended August 31, 2018.

The gross margin was 39.1%, compared with the gross margin of 40.9% in the prior comparable period.

Headline earnings a share decreased to 15.4c, compared with 16c in the prior comparable period, while trading profit was relatively flat at R176.2-million, at a reduced margin of 9.6% compared with 11.6% in the prior period.

The group has continued to invest in infrastructure, store development and marketing to enhance the competitiveness and sustainability of the businesses. This additional expenditure impacted on both margins and returns in the short term, resulting in a return on funds employed of 38%.

Notwithstanding that the trading environment is expected to remain difficult, with constrained consumer spending, management remains confident of the group's ability to execute in terms of its strategic imperatives.

Long4Life is targeting earnings growth for the full year, which it notes is underpinned by strong brands and services that remain appealing to many consumers.

Given the seasonality of the businesses, the divisions traditionally have higher operating leverage in the second half of the year.

The group's balance sheet strength continues to provide opportunities to assess internal and external possibilities.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.082 0.144s - 161pq - 2rq
Subscribe Now