Labat interim results February 2019
Revenue for the interim period shot up to R312.2 million (2018: R55.6 million), gross profit grew to R27.4 million (2018: R13.5 million), operating profit dropped to R505 000 (2018: R5.1 million) and loss for the period came to R3.5 million (2018: profit of R4.4 million). Furthermore, headline loss per share was recorded at 1.21 cents per share (2018: headline earnings per share of 1.71 cents per share).
No dividend has been declared for the period under review (February 2018: Rnil).
With the exponential growth of the newly established logistics business, the Board is of the view that the Group is well positioned to explore greater opportunities and use current resources to broadly diversify the Group's logistics strategy, which includes a seamless franchising model. In addition, the acquisition of Force Fuel, a large fuel distribution business, has given Labat the scale it requires for its growth strategy giving access to a diversified range of customers, including many in the logistics industry. Additionally, the Company has negotiated a number of long-term contracts with some of the large mining companies, whereas previously the Company only secured short-term contracts. The prospects for the rest of the year are exciting and all indications are that the Company will continue to grow the business.
Renewal of cautionary announcement
Shareholders are referred to the previous renewal of cautionary announcements, the last of which was dated 2 May 2019. Labat advises that the acquisitions of Senna Motors (Pty) Ltd. (t/a Elf Trans) and Centenary Tankers are still subject to significant conditions precedent. The successful conclusion of these acquisitions may have a material effect on the price of the Company's securities. Accordingly, shareholders are reminded to continue exercising caution when dealing in the securities of the Company until further announcements are made.