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Value Group boasts higher earnings

Johannesburg - Transport and logistics firm Value Group [JSE:VLE], reported on Tuesday that its diluted headline earnings per share (HEPS) rose 12% for the full year to February to 58.0 cents from 51.9 cents, saying the results were "commendable".

Growth in volume from an expanded customer base contributed an 18% increase in revenue to R1.58bn from R1.35bn. It declared a final dividend of 12 cents.

Despite additional subcontractor costs in the first half, robust trading conditions over the Christmas period and strict cost control resulted in gross profit percentages being maintained at 44%, it said.

Gross profit rose to R696.4m from R99.6m.

Net profit before tax of R137.6m was subject to a once-off black economic empowerment (BEE) equity transaction cost of R12.2m which is not tax deductible.

Headline earnings per share increased 7% from 52.4 cents to 56.2 cents.

In addition, cash generated by operations remained consistently strong and improved by 12% to R246.9m.

Value Group said its balance sheet remained financially sound, with the net asset value increasing 4% to 304.8 cents per share from 267.8 cents per share.

The group said it had produced commendable results in a period characterised by a protracted Transnet strike, a transport sector strike and the World Cup soccer tournament.

Turnover increased 18% from R1.07bn to R1.26bn.

In its truck rental division, revenue rose 15.6% from R281.7m to R325.6m.

"Truck rental has become highly competitive, with rates under severe pressure in order to improve low vehicle utilisations. This, in conjunction with the additional maintenance costs that were incurred to improve and upgrade the fleet, reduced margins from 16.1% to 12.0%," it said.
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