Premier profits up 30%
New acquisitions to further synergies and enhance value
PREMIER Fishing and Brands Limited (Premier) has announced that its year-onyear profit after tax increased by 31% – from R52 million to R68m, delivering an excellent maiden set of results for the year ended August 31, 2017.
This came just eight months after listing on the main board of the JSE,
The company said the positive results were realised as a result of excellent performances across most of the group’s operating divisions, exceeding Premier’s expectations by increasing its volumes, achieving better pricing, good catch rates, efficient cost and vessel management.
Samir Saban, chief executive of Premier, said: “Since our successful listing, the group remained focused while operating in tough trading conditions. Despite this, I am delighted at the positive results and look forward to growing the business further, increasing sustainably and increasing shareholder value.”
The increase in the abalone division’s production at yearend is expected to be realised over the short to medium term as a result of Premier’s plan to expand the abalone farm further by 2019/2020.
Khalid Abdulla, group chief executive of majority shareholder, African Equity Empowerment Investments Limited and deputy chairperson of Premier, congratulated the Premier team. – Staff Writer
PREMIER Fishing and Brands yesterday said it would continue to grow its business both organically and through acquisitions in the future as it sought to diversify its portfolio.
Chief executive Samir Saban said benefits from acquisitions such as the 53.35 percent stake the group paid R106 million for the Talhado Group last month would be realised in the short to medium term.
Saban said this would lead to further synergies among the existing operations and enhance value to shareholders of Premier.
“We will continue to grow our business organically and by acquisition, as well as focus on the expansion of our product basket to meet our customer’s demands,” Saban said.
Talhado is the largest squid player in the African fishing market and is expected to complement Premier Fishing and Brands’ diversification strategy and product basket.
The company’s current products include south and west coast rock lobster, pilchards and anchovies, hake, squid and abalone.
Presenting its maiden results for the year to the end of August, the company said that profit after tax increased 31 percent to R68m, up from R52m while normalised earnings per share and headline earnings per share surged 31 percent and 33 percent, respectively.
Revenue rose 2.24 percent to R411m, up from R402m and the group declared a maiden dividend of 15 cents a share.
The group said while the stronger rand had an impact on the revenue, cost controls and operational efficiencies managed to offset some of the negative impact on the business.
It said net asset value increased by 143 percent to R3.83 a share.
Premier Fishing and Brands listed on the JSE in March and managed to raise capital of R526.5m during the process.
Khalid Abdulla, who is Premier Fishing and Brands’ deputy chairperson and chief executive of majority shareholder, African Equity Empowerment Investments, also heralded the results and said he was pleased with the company’s performance.
Abdulla said the result showed that the executive team focused on the efficiency as well as maintaining growth, development and sustainability.
“The growth plans for the fishing group is taking place in earnest as expected and we look forward to the output and growth that this will generate in the future,” Abdulla said.
The group said it would continue to focus on the expansion of the abalone farm in the year ahead. The farm is scheduled to be completed by 2019/2020 with production capacity to increase in excess of 300 tons of cultivated abalone.
Premier Fishing and Brands shares dropped 7.23 percent on the JSE yesterday to close at R3.85.