Cargo Carriers shares fall despite upbeat update

CARGO Carriers share price dropped more than 5 percent in early trade yesterday, despite reporting a favourable trading update. The company expects the earnings per share (EPS) to increase by 20 percent for the year to the end of February.

The company said it was finalising its financial results for the year.

The positive update did not help to lift the company’s share price as it continued to trade lower at R9 a share on the JSE, down from Monday’s closing price of R9.50 a share.

Cargo Carriers share price was 5.26 percent down on R9 at the JSE close yesterday.

The company is a leading provider of supply chain and transport logistics solutions.

In terms of the JSE listings requirements, companies were required to provide guidance to the market when they were satisfied that a reasonable degree of certainty exists that the financial results for the current reporting period will differ by at least 20 percent from the results of the previous corresponding reporting period.

“Shareholders are advised that the company expects EPS for the year ended February 28 to be at least 20 percent higher relative to the prior comparative period. Headline Earnings per share are expected to be within the 20 percent range,” the company said.

In the last financial results to end February 2015, the company reported an increase in basic and diluted earnings per share from continuing operations of 24.8 percent to 170.4 cents a share while headline earnings per share rose by 33.9 percent to 97.8c a share. provide specific guidance on the extent of the expected increase in EPS and Cargo Carriers will publish a further trading statement in due course.

Cargo Carriers has been listed since 1987.

Its management of operations is structured around strategic product specialisation and are divided into: chemicals and steel, fuel and powders, agriculture and supply chain services.

In the last financial results, chemicals and steel saw its revenue climbing by 35 percent, while supply chain services recorded the lowest revenue growth of 3 percent. Fuel and powders and agriculture reported a revenue growth of 27 percent and 8 percent respectively.

The company said the financial information on which this trading statement was based has not been reviewed or reported on by the company’s auditors.