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Thursday, October 19, 2017

Value Group slips amid weak economic growth

Supply chain and logistics company Value Group says weak economic growth has hurt first-half revenue.


Revenue increased 2% to R1.2bn for the six months to August, while gross profit fell 3.7%, to R376.8m, the group said on Wednesday.
Excluding once-off black economic empowerment equity transaction costs, normalised headline earnings per share were up 24%, to 17.8c
A challenging economy had prompted an "ongoing extensive restructuring exercise", to extract cost savings, it said.

While it was not expecting an economic recovery in the short-term, Value Group anticipated an improvement in second-half earnings on increased volumes over the festive season.

Plans were under way to expand the business into areas that were not serviced, while the group continued to hunt for acquisition opportunities, it said.
ziadyh@businesslive.co.za

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