Value Group flags higher earnings


Value Group flags higher earnings

Published Date: 2019-10-09 | Source: Stephen Gunnion | Author: Stephen Gunnion

Value Group flags higher earnings

The distribution and logistics group has coped with a stagnant economy by trimming costs and expanding its customer base.

Value Group says it will report a sharp rise in first-half earnings as it continues to cut costs and grow its customer base.

In a trading update, the distribution and logistics group said all its operating segments experienced pricing and volume pressures due to the stagnant economy. However, this was partially mitigated by operational efficiencies, a growing customer base and cross selling of its services. Last year, the group restructured costs in its freightpak and logistics division and procured new warehousing, distribution and logistics customers.

It said its financial performance for the six months to end-August was also supported by a reduced interest cost after it adopted new financial standards, as well as a lower effective tax rate. It expects headline earnings per share for the period to be between 20% and 40% higher than the restated 24.4c reported last year. Basic earnings per share will also be as much as 40% higher.

Its results are scheduled for release on 17 October.

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