Value Group delivers results

Headline earnings are up 7% for Value Group for six months ending 31 August 2010, its BEE scorecard puts it as a level 4 BBEE contributor and gross profits are up 13% at R324.1 million. A dividend of six cents per ordinary share has been declared.

This increase has its basis in increased volumes from new customers and not from its existing client base which remained partially static through the period. "We were hoping for some degree of recuperation in our client base but it would seem that tangible recovery is still some way off," commented CEO Steven Gottschalk.

"We remain cautiously optimistic that headline earnings for the 2011 financial year will be stable. New business investments such as our recently launched Value Specialised Logistics (VSL) arm will grow market share and help us diversify into higher revenue streams."

The VSL arm was established following an investment of over R40 million in specialised vehicles. The new business is positioned to deliver services around the logistical movement of mining and abnormal loads within South Africa and its neighbouring countries.

Renewed management focus in the truck rental business saw revenue increasing by 19,2% from R122, 4 million to R145,9 million. "The truck rental industry has become highly competitive and rates are under severe pressure," he concludes.