South Ocean final results December 2018
Revenue for the year increased 21.2% to R1.728 billion (2017: R1.426 billion), gross profit jumped to R143.5 million (2017: R66.6 million), operating profit soared to R61 million (2017: R19.3 million), profit for the year from continuing operations turned around to R25.7 million (2017: loss of R6.2 million), while headline earnings per share came in at 3.6 cents per share (2017: headline loss of 35.9 cents per share).
No final dividend has been declared.
The Group's focus for the year is to improve profitability and the first step was to finalise the sale of Radiant Group and the sale of the properties occupied by Radiant Group.
The cash generated from the sale will be utilised to reduce the overdraft facility and spent on capex to increase SOEW's production capacity.
The Group increased its BEE shareholding and is working on increasing the BEE shareholding to at least 25%, which will create opportunities in increasing revenue as new markets can be targeted. The drivers for growth are global and local economic growth, increasing customer base, improving BEE shareholding and improvement in efficiencies.
Management is confident that the above actions will improve the Group's profitability.