Cargo Carriers results marred by tax – chief
17 May 2012
Posted by: SAIT Technical
By Roy Cokayne (Business Report 16 May 2012)
An additional tax knocked the results of Cargo Carriers in the year to February, Murray Bolton, the chief executive of the logistics group, said yesterday.
He described the figures as "very disappointing”.
Earnings a share fell by almost 25 percent to 64.9c.
Bolton attributed the decline primarily to the increased capital gains tax rate adjustment and the net deferred tax asset adjustment during the period. He added that the net effect was an additional tax charge of R9 million.
"This has reduced earnings and headline earnings a share by 46.4c and has resulted in a 60.6 percent effective tax rate for the group. Impairments of assets of R3.3m further (dragged down) earnings a share by 17.4c and relates to non-current assets held for sale.”
But Bolton said the 25.2 percent increase in headline earnings a share to 60.7c was pleasing in light of the additional tax adjustment and reflected the real growth in operating profits, combined with initiatives to cut costs that had been implemented.
Revenue rose by 9 percent to R593.9m, while profit before finance income and costs added 20 percent to R45.9m. A final dividend of 8c a share was declared, which was 60 percent higher than the previous year and resulted in an unchanged dividend for the year of 17c a share.
The group remained committed to its strategy for growth and strategic acquisitions, Bolton concluded, which was expected to improve earnings and increase the company's gearing.
Cargo Carriers shares were untraded on the JSE yesterday, ending the session at R9.15.