Transpaco on lookout for potential targets

Asha Speckman

Transpaco would “continue targeting organic growth while also pursuing appropriate acquisitions”, the manufacturer of packaging products said yesterday.

Chief executive Phillip Abelheim told Business Report that although there were no acquisitions under consideration in the pipeline, the company was searching for potential targets in manufacturing.

Transpaco makes paper and plastic products that include refuse plastic bags, printed folded cartons for pharmaceuticals and cosmetics and food wrap.

Revenue grew 10 percent to R607 million for the six months to last December compared with a year earlier, although Transpaco said trading had been adversely affected by widespread industrial action, specifically in the mining and transport sectors.

Headline earnings a share increased by 2.4 percent to R1.354 compared with R1.323 a year earlier.

Shares in Transpaco closed 10c lower at R16.90 on the JSE yesterday.

Abelheim said: “We are pleased with these results, especially considering tough market conditions.”

Operating profit in the paper division grew 34 percent to R27.6m during the period against a 24 percent decline to R30m in operating profit in the plastics division, due to tough market conditions.

Operating profit in the properties and group services division declined to R1.6m.

Total operating profit was R60.1m for the six month period compared with R59.3m previously.

A dividend of 36.5c a share was declared.

The firm said it had no secondary tax on companies credits.

“After applying the dividend withholding tax of 15 percent, a net interim dividend of 31.025c a share will be paid to those shareholders who are not exempt from the dividends tax,” the company said.