Marshall Monteagle lifts earnings 146%

Marshall Monteagle Holdings Société Anonyme lifted full-year earnings per share 146% after disposing of some of its investments and revaluing property.

The property investment and food processing group, which is listed on the JSE and Luxembourg, said yesterday that earnings per share climbed to $0,69 in the year to September from $0,28 a year earlier.

Group revenue increased 15% to $90,4m from $78,9m, while profit before tax increased 14% to $4,7m.

Marshalls' shipping and distribution unit showed more growth and continued to distribute private label food and nonfood products to multiple retailers and wholesalers in SA and Australia.

During the year reviewed, the unit experienced significant raw material price hikes, along with currency volatility. These trading conditions were expected to go on into the new financial year, Marshall said.

Well positioned

“The division is well positioned to operate in these market conditions and continually strives to anticipate client needs and exceed their expectations,” the group said.

“The period under review reflected a trend towards more competitive trading conditions with L&G Tools adjusting its strategy on margins.

“Although margin targets have been achieved for the financial year, continuing margin pressure is to be expected.

“L&G has the strategic objective of building on its strengths and seeking synergies by acquiring majority shareholding in businesses complementary to its existing business,” it said.

Two transactions had already been concluded and would come into effect next month.

One of the businesses acquired is a distributor of pre-packed fixings and hardware while the other is a welding manufacturer and repair agent. It produces high quality inverters, Mig welders and plasma cutters.

The acquisition of these businesses would be funded out of local resources, the group said.

The low vacancy rates in the group's property portfolio during the year in California led to satisfactory returns.

That region remained a robust market and it was intended to increase investment in southern California, the group said.

Satisfactory growth

The portfolio of commercial properties in SA, including those held by the Merchant group, produced good returns, given higher rental income and low vacancy rates.

Yields available on industrial property in Cape Town and Durban remained low during the period under review, despite increases in the cost of borrowing.

The company's diverse equities portfolio showed satisfactory capital growth during the year.

The US market had a better year this year, but, as during the year before, it lagged behind the performance of Europe.

“The group remains invested in quality companies in the UK, Europe, US. and the Far East. A more challenging year for equity investors must be expected (this) year as liquidity problems in the credit markets work through the world banking system,” it said.

Halogen Holdings Société Anonyme, through its UK subsidiary Halogen Holdings, invested £3m in cash in Heartstone Inns, the owner and manager of a growing chain of UK country pubs that owns four freehold pubs.

Source: Business Day

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