Cargo Carriers earnings up 141.8% to 149.7c

Cargo Carriers has seen a dramatic increase in its profits. Image: Cargo Carriers

The group said the increased earnings had been boosted by acquisitions‚ new business and the disposal of surplus assets.

"The group's performance is pleasing in light of a challenging local and global economy. The business has managed to increase its profitability in difficult trading times and its long term strategy for growth is materialising. The purchase of 55% of Buks Haulage in Zambia‚ combined with new business and a dedicated focus on certain loss-making contracts have gained significant momentum and contributed positively to the overall results‚" Cargo said.

Revenue and profit from operating activities increased by 45.5% and 118.8% respectively‚ which the group attributed to the contribution from Buks and organic growth in the business.

The industrial and agriculture segments were negatively affected by R3.2m impairment of non-operating assets which had been classified as held for sale.

The sale of a property and an aircraft had generated a net increase of R47.3m in cash and short-term deposits during the latter part of the current period. This had had a positive effect on the growth in income of 57.2%.

Looking ahead‚ Cargo said the local and global economy continued to be plagued by many uncertainties. The group intended to focus its efforts on profitable growth in the form of acquisitions and new business opportunities‚ which would allow it to gain market share and leverage synergies within its operations.

"The current low gearing and strength of the balance sheet augers well for pursuing such investment and growth opportunities. The group is expected to continue profitably until the end of the financial year‚" Cargo said.