Conditions for listed logistics and transportation business Cargo Carriers in their year to February 2010 couldn’t have been more challenging. In the light of this, their posting of a 44% growth in earnings per share and a 116% growth in headline earnings per share are remarkable.

Murray Bolton, Joint CEO, explains, “We took some strong cost-control action when the recession started to affect our volumes, and fortunately, our efforts to improve our BBBEE and SHEQ (safety, health, environment and quality) scores have started to bear fruit.” He continues, “If one adds to this the fact that the recession has taken a heavy toll on many of our competitors whilst we have built our strongest balance sheet in years, it is not so surprising that we are beginning to pick up business.

“A contributing factor toward improved profitability is the fact that we have invested significantly in our fleet over the past three years. This leads to a reduction in maintenance and fuel costs, and to an increase in reliability. But it’s our investment in people that will probably reap our best return” says Bolton. “We recently opened a multi million Rand training facility in Sasolburg, and we have re-established our management development programme. When we grow our managers in the business, we feel the difference”

Certainly they aren’t the only ones; a surprise 59% increase in the year’s dividend declaration would have pleased the shareholders.