Santova navigates choppy SA waters


Santova navigates choppy SA waters

Published Date: 2019-10-16 | Source: Stephen Gunnion | Author: Stephen Gunnion

Santova navigates choppy SA waters

The logistics group says the weak economy has resulted in a decline in shipping volumes in the SA region.

Santova says it will report a decline in first-half earnings as the weak local economy continues to weigh on business confidence, leading to lower levels of economic activity and consumer consumption.

In a trading statement, the logistics group said this led to lower shipping volumes in the six months to end-August and a resultant decline in logistics revenue in the region, of between 10% and 15%. However, it said its offshore operations provided a cushion, with the total contribution from its foreign subsidiaries experiencing meaningful growth. Recent acquisitions, SAI Logistics in the UK and ASM Logistics in Singapore, both contributed to profits for the full six-month period.

It expects basic and headline earnings per share (EPS) for the period to be between 12% and 17% lower than a year earlier, translating into basic EPS of between 17.56c and 18.62c and headline EPS of between 17.54c and 18.59c per share.

Its results are expected to be released by 31 October. Its shares closed unchanged at R1.70 yesterday after a decline of as much as 5.9% earlier in the day.

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