GRINDROD UNICORN Group posted a loss of R66-million for a most difficult year to December 31, 1999 after making a provision of R18,8-million for future contracted losses in respect of ships chartered out to third parties.
The group recorded a profit of R27,46-million in 1998.
Managing director Ivan Clark said the secord half of the year showed some improvement. Losses of R14.04-million were incurred compared to a loss of R51,96-million reported at the interim stage.
The losses reflect the weak international shipping market, which impacted Grincor's charter business, as well as low South Africa import/export voumes, which affected most of the land-based operations. Further rationalisation costs were incurred in downsizing these business.
The world shipping market began to improve in the second half of the year and the medium-term outlook is positive. With a a stronger local economy, rationalisation of our activities and recent acquisitions, we believe the group will return to profitability this year, he said.
Grincor made various strategic moves during the year which Clark believes will underpin its recovery:
¥ Acquisition of the 40% minority interest in Unicorn
¥ Investment in Marriott increased from 32% to 50%
¥ Acquisition of Island
View Shipping from Tiger Oats
¥ Disposal of 50% of warehousing and cargo services to form a joint ventiure with P&O Trans European
¥ Sales of two bulk carriers from the Griffin fleet.
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