Astrapak interim results August 2013
Revenue from continuing operations for the interim period increased by 1.2% to R1 222 million (2012: R1 207 million). Gross profit was lower at R252.3 million (2012: R293 million), and profit from operations fell to R8.4 million (2012: R70.9 million), while loss for the period from continuing operations attributable to owners of the parent was recorded at R30.1 million (2012: profit of R130.1 million). Furthermore, headline loss per ordinary share from continuing operations was at 10.7cps (2012: headline earnings per share of 22cps).
No dividend is declared. Recommencement of dividend payments to ordinary shareholders is an important goal and payments will be determined by reference to the retention needs of the company for maintenance and growth and in relation to asset management.
Detail on the turnaround strategy, implementation thereof and financial objectives were comprehensively dealt with by Mr Robin Moore in his Chief Executives report in the 2013 integrated annual report published on 17 July. These financial objectives, inter alia, include a 15% return on capital employed over the course of a business cycle, recommencement of dividends to shareholders, and an operational performance that is reflected in an improved stock market capitalisation. Our qualitative objectives for the way we deal with people and how we consume natural resources are no less important and will also shape the financial outcomes. This is not an easy year for Astrapak. We are instituting big changes in a difficult market and these can be unsettling at a time when we also have to keep the businesses delivering superior quality products on time to customers. The first half result is mediocre and we expected that. We are sticking to our strategy, implementation is on track and we are building for improved returns. As the team moves into the second phase of the recovery plan the Group will look to many of the initiatives completed in phase 1 to start delivering additional value, both from a qualitative and quantitative perspective. Astrapak sincerely values the support of all stakeholders.