Takeover will generate future opportunities

IT WAS a difficult year for Micor, with the pains of a takeover and a strengthening rand both having a negative effect on company activities. “But,” said Edward Webb, international forwarding director of Kompakt International Cargo Services, contractors for Micor in SA, “the negative will be followed by the positive.” In 2003 Micor was in the throes of being acquired by Super Group – a take-over which was concluded in September of that year. “But this,” said Webb, “has resulted in increased volumes that had not previously been harnessed within the group, and gave rise to new opportunities which will have a dramatic effect on the growth figures in years to come.” As with many companies, the strengthening of the rand against the US dollar impacted negatively on the export market. “This,” Webb told FTW, “coupled with the airline rate increases (all of which are US$-based) made the airfreighting of cargo even more unattractive.” However, despite this obvious pressure on air cargo volumes, it was not all negative for Micor’s overall revenue. “Although there was a shift from airfreighting the cargo to moving it by seafreight,” said Webb, “this generated extra seafreight cargo for us – and we measured significant growth in this sector.” For the year of 2003, Micor showed a 22% drop in IATA airfreight export turnover, with a total of R20.3-million in its books – but still saw the company firmly slotted in at number 26 in the Top 30.