LOGISTICS: Cargo Carriers Flexes Its Muscles
Recent Gauteng Business News
Revenue for the period was up 18%, which given the sluggish economic environment and relatively low inflation effect, is a good performance. What it belies is the extent of new business in this turnover, which only contributed to these results for two to three months.
News of important business gains have been consistently released over the past months from Cargo Carriers that pointed to significant increases in the period under review. No doubt, full-year turnover growth will be boosted beyond these numbers by another six months of this new business.
The headline earnings growth of 19.3% has been even more impressive considering that the startup costs for this new business have been largely accounted for in the period under review. All things being equal, margins for the full year should improve as these costs are amortised over the full fiscal.
Further evidence of this growth is to be found in the Balance Sheet where the company has made its biggest investment yet in tangible assets, with a further R112m invested in trucks, trailers and an extended branch network in the past six months.
“The Cargo Carriers business has been improving consistently for the last nine years,” says Murray Bolton, joint CEO.
“Our decision early in the decade to move from a geographic to an industry focus has improved our ability to deliver a meaningful and competitive service to customers. This strategic decision and our continually improving BBBEE and Safety, Health, Environment and Quality scores have made it easier for our marketing and sales teams to succeed in the marketplace”
Business News Sector Tags: Logistics|