Durban, 31 August 2018: Grindrod released its interim results for the six months ended 30 June 2018. With the spin-off and separate listing of its Shipping division on the NASDAQ with a secondary inward listing on the JSE, successfully executed in the first half, and the board changes announced last week, there is renewed strategic focus for the remaining divisions, Freight Services and Financial Services.
Grindrod reported earnings of R 2 387.8 million, an improvement in excess of 100% compared to the loss reported in the first half of 2017. This included the foreign currency translation gain arising from the Shipping spin-off.
Performance from continuing operations – Freight and Financial services
Headline earnings from continuing operations R284.8 million (H1 2017: R231.5 million), 23% increase on the prior year underpinned by improved performance from the remaining operations.
Headline earnings per share 37.8 cents (H1 2017: 30.8 cents)
Earnings per share 46.7 cents (H1 2017: 45.6 cents)
The interim results have highlighted good terminal utilisation and improved port volumes due to the completion of the channel dredging in Maputo and buoyant chrome and ferrochrome markets and improved results on the north/south rail corridor.
Results benefitted from the extension of landside storage and handling capabilities in Durban, and good profitability from the Agri businesses as they returned to levels before the 2016/2017 drought.
The cross-docking facility in Nacala is now complete, and a ramp-up in volumes for the Syrah graphite contract is expected.
The Financial Services division reported solid results with an increase in earnings over the same period in the prior year. Strong performance of the UK Property Portfolio was reported. Grindrod remains committed to providing the support required during the transition phase of the SASSA bank accounts and distribution of payments.
As per the SENS announcement dated 22 August 2018, Andrew Waller will be appointed as CEO Grindrod Limited and Xolani Mbambo will be appointed Financial Director Grindrod Limited with effect from 1 September 2018. Andrew and Xolani will also perform these respective roles for the Freight Services business, as Grindrod consolidates the structure.
Said Mike Hankinson, Executive Chairman Grindrod: “We are seeing results from our focus on developing freight solutions for our customers using our infrastructure assets along Africa’s logistics corridors. Steady and organic growth is expected in the Financial Services Division as it continues to drive focused business growth and seek investment banking opportunities.”
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