Grindrod records 45% rise in profits

TERRY HUTSON
GRINDROD’S ANNUAL results, which were announced last week (19 Feb), reveal that the Durban-based company overcame a strengthening rand to announce a fourth consecutive year of growth and solid earnings, with profits having appreciated 45% to R239.9 million (R165.4m in 2002).
The shipping and logistics company has invested timeously in new ships, particularly in the Handysize dry bulk range, which allowed Island View Shipping to take advantage of the high shipping markets through an expanded charter fleet of over 80 vessels.
The excellent results achieved from the international charter business have more than offset the negative effects of high charter rates and the strong rand on Island View’s traditional parcel service out of South Africa, which uses short-term charter vessels, says CEO Ivan Clark.
He says the group has developed a trading ability in a variety of shipping markets, designed to help Grindrod ride any cyclical swings.
“In the future we are looking to develop and buy further into non-cyclical businesses, which should also help secure consistent earnings growth. Together with our empowerment and international partners the group will be seeking to expand warehousing and terminal facilities in Southern African ports.”