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GRINDROD LIMITED - GRINDROD LIMITED - Trading Statement

Release Date: 18/02/2019 17:10
Code(s): GND GNDP     PDF:  
 
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GRINDROD LIMITED - Trading Statement

GRINDROD LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number: 1966/009846/06)
JSE Code: GND & GNDP
ISIN: ZAE000072328 & ZAE000071106
(“Grindrod” or "the Company")


TRADING STATEMENT


Renewed focus on Freight Services, following Shipping’s separate listing in June 2018, is yielding
positive results. Furthermore, while its repositioning is ongoing, earnings growth generated by
Financial Services is pleasing.


Grindrod expects headline earnings from continuing operations, for the year ended
31 December 2018 to be between R707 million and R727 million, an increase of between 24% and
27%, compared to headline earnings of R570.8 million generated in 2017. Earnings from continuing
operations for the same period are expected to be between R793 million and R813 million, an
increase of between 23% and 26% compared to earnings of R646.3 million achieved in 2017.


As a result of the above, shareholders are advised that headline earnings per share from continuing
operations are expected to be between 94.0 cents and 96.7 cents, an increase of between 24% and
27% compared to the headline earnings per share of 76.0 cents achieved in 2017. Earnings per
share of between 105.5 cents and 108.1 cents are expected, an increase of between 23% and 26%
compared to earnings per share of 86.0 cents achieved in 2017.


Discontinued operations, which include Shipping and Rail Leasing, are expected to generate
earnings of between R2 032 million and R2 052 million. As reported in the first half, results include
the foreign currency translation gain that arose from separate listing of Shipping and the impairment
of some locomotives in the leasing fleet.


Overall earnings for the year ended 31 December 2018 are expected to be between R2 825 million
and R2 865 million, an improvement in excess of 100% from the reported loss of R582.7 million in
2017. Headline earnings for both continuing and discontinued operations for the same period are
expected to be between R466 million and R506 million, an improvement of in excess of 100% from
the reported headline loss of R356.0 million in 2017.


Shareholders are advised that combined headline earnings per share from continuing and
discontinued operations are expected to be between 62.0 cents and 67.3 cents, an improvement
from the reported headline loss per share of 47.4 cents in 2017. Earnings per share of between
375.7 cents and 381.0 cents are expected, an improvement from the reported loss per share of 77.6
cents in 2017.
The information contained in this trading statement has not been reviewed nor reported on by the
company’s external auditors.


Grindrod will release its final results to shareholders on Wednesday, 6 March 2019 and will be
holding an investor presentation in Johannesburg on that day.


By order of the board
18 February 2019
Sponsor: Grindrod Bank Limited

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