Artwell Dlamini
4 November 2009
Johannesburg — CARGO Carriers said yesterday its re-entry into Zimbabwe had paid off after sugar operations there lifted the group's interim results to August .
Joint CEO Murray Bolton said the group's venture into Zimbabwe became possible after the country moved to a US dollar- and rand-based economy.
Bolton said the reintroduction of the Zimbabwean sugar business into Cargo Carriers's agricultural operations also assisted to mitigate risk to the climatic conditions of Swaziland.
"The Swaziland business, as it happens, although a positive contributor, again experienced disappointing business and climatic conditions," he said.
Bolton said Cargo Carriers' s performance was also lifted by strong operating and administrative cost controls and an improvement in operating margins from 10,1% to 11,3%.
In the six-month period, basic earnings per share increased to 69c from 54,9c in the previous corresponding period, and basic headline earnings per share rose to 62,7c (55,3c).
The group declared an interim dividend of 9,5c.
Bolton said the company achieved these "pleasing" results despite a real-volume decline of more than 20%.
Cargo Carriers transports products such as steel, agricultural commodities and consumer goods.
The economic and financial crisis has seen sharp reduction in volumes, hitting revenue.
Revenue decreased to R236m from R263m.
Apart from the economic downturn, Bolton said the agricultural segment, excluding the Zimbabwe operations, had been adversely affected by unfavourable weather patterns.
Bolton said the company was on the acquisition trail.
"Our favourable gearing and strong cash position are unusual attributes in an industry that has been under stress."
He said prospects looked "better than they have been for over a year" despite having several competitors.
The company, he said, had started to experience an increase of its volumes from the industrial sector as the economy improved.
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