Labat Africa’s share price surges 170% in half-year to end of February
BUSINESS LIVE / 08 MAY 2018 - 13:36 / KARL GERNETZKY
Operating profit grew 375% in the year to end-February, with Labat reporting progress in securing long-term mine haulage contracts
Acquisitive black economic empowerment (BEE) group Labat Africa said on Monday that headline earnings per share (HEPS) grew 338% to R1.71 in the six months to end-February, due to improved revenue in both its transport and technology segments.
Labat said in a statement after markets closed on Monday that logistics sales grew to R49.17m from R17.26m in the prior period, while revenue in its technology segment grew to R6.43m from R3.38m.
The results released on Monday were broadly in line with the company’s recent guidance.
The group, which owns silicon-chip manufacturer Sames, was one of the first listed BEE companies.
It was founded by former South African Rugby Union boss Brian van Rooyen and Victor Labat.
The company has been pursuing acquisitions in the logistics sector, but had faced several setbacks.
This included the termination of talks for a R560m takeover of Reinhardt Transport Group. The company subsequently announced it would continue with its strategy, but through joint contracts and agreements.
The group said on Monday that net profit grew to R5m from the previous year’s R1m. The company said it was making progress in securing long-term as opposed to short-term contracts, and was pursuing its marketing strategy.
At 12am, Labat’s share price was unchanged at 40c, having gained 5.26% on Monday. The company had lost 13.64% on May 3, the day before its forward guidance was released.
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER