Transpaco continues to feel strike effects

21 Aug 2014

Packaging group Transpaco said it expects the tough trading environment in the plastics and metal sector to continue "for a while" following a recent national strike.

Transpaco's Phillip Abelheim says that the effects of the recent strike, coupled with high energy and labour costs are taking a toll on the company's performance. Image: Who's Who Southern Africa

The company‚ which released its full-year results this week‚ said the strike would affect its trading into the first two months of the 2015 financial year‚ but the group said it would continue to explore possible earning-enhancing acquisition opportunities.

"We will remain focused on our business and financial fundamentals and continue driving marketing and sales to counter market hurdles and support our growth momentum‚" Chief Executive Phillip Abelheim said.

Transpaco reported diluted headline earnings per share (HEPS) for the year to June of 205.5c up from 203.7c last year. Net asset value per share increased by 10.8% to R12.49. Operating profit was 5.1% higher than the previous year at R97.8m.

Transpaco declared a final dividend of 54c per share‚ bringing the total dividend to 93c per share for the year.

Abelheim said he was pleased with the group's performance in the difficult trading conditions.

"Despite above-inflation increases in energy and labour costs in the year‚ management successfully contained operating costs and maintained good working capital control‚" he said.

Source: I-Net Bridge

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