Transpaco has released its unaudited condensed interim group results for the six months to 31 December 2015 and also made a dividend announcement.
The performance of the manufacturer, recycler and distributor of plastic and paper packaging products reflected a 50.4 per cent increase in headline earnings per share, exceeding expectations despite a continued challenging economic environment.
The group’s margins, while remaining under pressure, improved as raw material prices stabilised during the period. Controlled expenses, increased volumes in certain operations and the inclusion of East Rand Plastics for five months all contributed to the company’s pleasing results.
All of the company’s operations impacted favourably on group profits with several outperforming the previous year. East Rand Plastics, acquired by the company effective 1 August 2015, is trading well and is expected to continue making a positive contribution to group profits.
Headline earning per share for the 12 calendar months ended 31 December 2015 increased 61 per cent to 307.2 cents. The group’s net interest-bearing debt-to-equity (gearing) position is 17.6 per cent. The variation in gearing and net interest paid is attributable to funds utilised to acquire East Rand Plastics and additional working capital requirements. Net asset value per share increased by 14 per cent to 1 503 cents.
The group will continue its proven business strategy, targeting organic growth while maintaining strict financial control and at the same time identifying and pursuing appropriate acquisitions.
