As the year draws to a close, I’d like to give you some feedback on what has been happening in the last few months.
Our interim results released in August 2018, reflects the group’s improved financial results for the first half of 2018, but there is a gap between our traded share price, now touching the low levels of R6, and our net asset value per share which is much higher at R13 per share.
The executive team have worked very hard to understand the challenges and develop cohesive actions to close the gap. Some of which include:
• Separate management focus on Intermodal and Carrier Logistics to drive growth.
• The acquisition of Novagroup to add further skill, broaden the service offering and increase the customer base of the ships agency and container depot operations.
• Developing a new car storage and distribution facility in Camperdown.
• Further investment in the Maputo Port facilities with our partners to increase capacity and efficiencies.
• Collaboration with our partners on the North South rail corridor and rail leasing businesses to bring freight and equipment to the corridor.
• Careful hand over of SASSA responsibilities and focus on a new retail service offering.
• Further development of the UK property portfolio.
Our wins in the short term will include fully contracting the capacity at TCM (Terminal de Carvão da Matola) and RBT Grindrod Terminals (Richard Bay), increasing volumes in Maputo Port on the back of the completed dredge and increased investment, and ramping up of volumes on the graphite logistics project in Nacala.
In the long term our strategy is to continue to add diversity and scale, focused on unlocking corridors to enable affordable logistics for Africa’s resources in a competitive world. The Maputo Port, the North South Rail corridor and the Nacala logistics contract are all examples of this focus on corridors.
Mike Hankinson stepped into the role of executive chairman in 2017 to support the executive and to assist with the separate listing of the Shipping business. Mike will once again support and lead the board in the role of non-executive chairman with effect from 22 November 2018. We thank Mike for his leadership and support during Grindrod’s transition phase and his continued leadership as non-executive chairman of Grindrod Limited.
Thank you to our customers, staff, suppliers and investors for your support in 2018. We wish you all a happy festive season.