Grindrod gets its timing spot on

TERRY HUTSON THE STRONG shipping market allied to the maintenance of low fixed costs across an enlarged fleet has contributed substantially to the latest results achieved by the Grindrod Group, says CEO Ivan Clark. Grindrod achieved an increase in dollar turnover of 230% for the year ending December 2004, which was however devalued by the strong rand. Headline earnings per share rose 146%, with profits increasing by 132% to R557m, compared with R239.9m in 2003, making a dividend of 125 cents per share possible compared with 42c the year previously. “Our long-term planning and decision to expand the fleet at a time when markets were low has now paid off and is evident in the group’s ability to generate good cash from operations despite a dramatic strengthening of the rand,” said Clark. “We expect to have extensive cash flows at our disposal for several years to come and will look to invest these cash flows carefully to ensure that our two main business activities – shipping and freight and financial services – grow and provide good returns on the new capital invested.” By the time the current programme is complete in 2007 Grindrod will have invested R2bn in ships and a further R1bn in landside operations. This includes the recent purchase of bulk terminals at the ports of Walvis Bay and Maputo and the landside properties formerly owned by Uniroute Logistics.