Barloworld maintains strength in full-year numbers

Industrial brand management company Barloworld maintained its revenue and operating profit levels from continuing operations in the year to 30 September, it reported on Monday, at ZAR 62bn and ZAR 4.1bn, respectively.

The company said headline earnings per share from continuing operations were up 16% to 975 cents, with cash inflow before financing activities totalling ZAR 2.6bn.

Its net debt-to-equity ratio stood at at 27.6%, compared to 40.7% last year, while its return on equity from continuing operations was 10.5%, up from 9.3% year-on-year.

The board declared a total dividend per share of 390 cents - an improvement of 13% over 12 months ago.

“Equipment southern Africa's operating performance has been resilient in the year following a rebound in mining and infrastructure demand,” reported Barloworld chief executive Dominic Sewela.

“Increased activity has generated improved results in our joint venture in the Katanga province of the Democratic Republic of Congo.”

Sewela said strong mining and aftermarket activity in the Equipment Russia division drove a solid performance in that business, adding that the discontinued Iberian Equipment operation was now held for sale.

“The Automotive division produced pleasing results despite challenging market conditions with both revenue and operating profit exceeding 2016 levels.

“Trading in Logistics was up on last year due to the full year impact of acquisitions and new contracts secured in 2016, however, the operating performance was negatively impacted by the loss of a major customer and once-off costs.”

Sewela said the group was making “good progress” in implementing its strategy to fix and optimise existing businesses, and had started to realise the benefits.

“As a result of strong positive cash generation and well managed debt levels, we are well placed to capitalise on acquisitive growth opportunities as they arise.

“The full benefit of initiatives progressed in the current year will continue to have a positive impact into 2018.”