25 February 2015
For immediate release
Grindrod announces final financial results for year ended 31 December 2014
The Grindrod board of directors are pleased to announce the final results for the financial year ended 31 December 2014.
Grindrod has reported revenue increase of 2% to R32 717 million inclusive of joint ventures (2013: R32 135 million), despite depressed commodity prices, delayed recovery in dry bulk shipping markets, the winding down of Atlas (agricultural trading business) and industrial action in the first half of 2014.
EBITDA has increased by 4% to R1 825 million inclusive of joint ventures (2013: R1 761 million) and headline earnings have increased by 4% to R729.4 million (2013: R701.8 million).
A significant capital raise of R4 billion was successfully completed, of which R2.4 billion was raised by the issue of 96 million new shares and R1.6 billion was raised in a BEE transaction.
Grindrod bought out the BEE shareholders at subsidiary level, giving them the opportunity to form a consortium with the JSE listed black controlled and managed, Brimstone Investment Corporation Limited which in turn invested R1.6 billion at the Grindrod holding level.
The issue of 96 million new shares has resulted in the weighted average number of issued shares increasing by 15% to 678.3 million (2013: 591.1 million). This has resulted in a 9% decrease in headline earnings per share to 107.5 cents (2013: 118.7 cents). Earnings per share is also down by 26% to 147.6 cents (2013: 199.1 cents).
Net asset value per share is up 16% to 2 227 cents (2013: 19 26 cents).
Final ordinary dividend per share is up 17% to 20.0 cents per share (2013: 17.1 cents).
Diversification of commodities contributed to the good volumes reported in the dry bulk terminals. The rail leasing business remains active but the rail manufacturing and rail construction business has been depressed by commodity markets. In the road transportation businesses, a significant turnaround in the auto carrier business has been noted whilst restructuring of the road tanker business is well underway.
Shipping rates in the dry bulk sector remain well below profitable levels and the rates in the tanker sector were at unprofitable levels for the majority of the year returning to profitable levels in the last quarter. However, the average earnings per day exceeded average spot-market rates and the ship-operating businesses delivered a solid performance. There has been good progress on the shipping fleet renewal program.
The Financial Services division reported growth across all businesses. Presence in the Exchange Traded Fund market has grown and a material investment in UK property private equity fund was made.
Though expansion plans remain unchanged, specifically in the dry and liquid bulk terminals and the rail businesses, expansion will be phased in line with demand for capacity and rail delivery solutions.
Grindrod’s business strategy is to purposefully grow the business organically, by acquisitions and seeking synergies within the group, with specific focus on Africa and to offer a tailored and fully integrated freight and logistics service to its customers.
To schedule an interview with Alan Olivier, Grindrod CEO, please contact:
Alison Briggs, Group PR & Marketing Manager
Tel: +27 31 302 7113 / +28 83 419 2970
To view the complete results and the investor feedback presentation, please visit www.grindrod.co.za
To access the live presentation in Johannesburg at 10h00 today (25 February 2015) dial:
South Africa – Johannesburg 011 535 3600 Res: 32013
010 201 6800
South Africa – Cape Town 021 819 0900
South Africa – Durban 031 812 7600
Other Countries +27 11 535 3600
Audio Playback access numbers +27 11 305 2030 Code: 32013#