Spanjaard flags return to profitability

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Spanjaard flags return to profitability

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Published Date: 2020-11-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

Spanjaard flags return to profitability

The lubricants and chemical products group reported a first-half loss last year due to distribution problems.

Spanjaard has flagged a big improvement in its financial performance for the six months ended August without giving any reason for the turnaround.

In a trading statement, the company said it would report earnings and headline earnings per share of 13.03c and 12.94c respectively, up from last year's loss and headline loss of 1.51c per share.

Spanjaard makes and distributes special lubricants and allied chemical products for the industrial, automotive, marine, mining, electrical and household markets. Last year's interim results were impacted by a rise in administrative expenses and distribution costs due to teething problems after it outsources its warehousing and distribution operation. It was also negatively affected by a decline in exports to the Asia Pacific region. However, at the time it said it was focused on appointing new distributors and on addressing the underperformance of former and existing distributors.

The company also said it was exploring new opportunities for growth in its food business and export channels and was developing new products to be used in food and beverage processing facilities, as well as pharmaceutical production facilities and other cleanroom environments.

It expects to release its results on 30 November. Its shares didn't trade yesterday, closing unchanged at R3.90.





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