Transpaco posts 50% y/y rise in H1 headline earnings
JSE-listed Transpaco’s performance exceeded expectations in the six months to December 31, with headline earnings a share increasing 50.4% year-on-year to 190.6c.
Turnover of R912.6-million was up 27.4%, while operating profit increased 57.2% to R89.3-million
The strong performance was further underpinned by controlled expenses, increased volumes in certain operations and the inclusion of East Rand Plastics for five months.
Margins improved as raw material prices stabilised, with an operating margin for the period of 9.8%.
The acquisition of East Rand Plastics had been bedded down, with the operation trading well during the period and expected to continue contributing positively to group profit.
Gearing increased to 17.6% compared with a net cash positive positon in the prior year, owing primarily to the funds used to acquire East Rand Plastics and additional working capital.
The board declared a dividend of 52c a share, which compared favourably with 34c a share in the comparative period.
Transpaco’s net asset value a share was up 16.2% to R15.03, compared with R12.94 in the comparative period.
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