Grindrod’s headline earnings down 32% - CNBC Africa

Grindrod’s headline earnings down 32%


by Bavani Naidoo 0

Grindrod is a South African based shipping, freight and logistics company. PHOTOS: Getty Images

The company, which released results on Thursday, reported that the interim ordinary dividend per share for the six month period ended June 2014 was also down from 20 cents in 2013 to 13.6 cents in the current period.

Grindrod’s operating profit before interest and taxation for the 2014 period was also down from 2.6 million rand in 2013 to 2.5 million rand in the current period.

(READ MORE: S.Africa's Grindrod sees mixed interim results)  

[DATA GND:Grindrod Limited] is a South African based shipping, freight and logistics company with operation in 37 countries worldwide. They company’s operations freight services, trading and financial services.

The company acknowledged in a statement that the “current depressed shipping rates will put pressure on earnings in the near term.”

Despite the poor share performance, the company managed to record a 22 per cent increase in revenue from 3.6 billion rand in 2013 to 4.3 billion rand in the current financial period.

“Performance of the shipping division was acceptable, notwithstanding delayed recovery resulting from continued weakness in global shipping markets,” reported Grindrod.

Earnings before interest, taxation, depreciation and amortisation (EBITDA) was up slightly from 4.8 million rand in 2013 to five million rand in the current comparative period.

“In the first half of 2014 Grindrod continued to make progress in optimising operational assets in line with its vision to create sustainable returns and long-term value for its stakeholders. The Maputo businesses continued to reflect good contributions despite adverse market conditions,” said the company.

The company managed to raise equity capital of 2.4 billion rand with the completion of the Bookbuild Placement of 96,000,000 shares in May 2014. Grindrod’s B-BBEE consortium also brought in 1.6 billion rand.

(WATCH VIDEO: Bidvest enters into a memorandum of understanding to acquire Grindrod bank)

The financial services operation of the company, comprising of Grindrod Bank and Grindrod Asset Management, was discontinued in the current reporting period following a memorandum of understanding for the proposed acquisition by the Bidvest Group.