Packaging company Transpaco (TPC) on Wednesday reported a 13% rise in diluted headline earnings per share to 125.1 cents for the six months ended December 2010 from 110.8 cents a year ago. HEPS were 14% higher at 141.9 cents per share.
Organic growth, the acquisition of Disaki Cores and Tubes as well as a reduction in net interest paid contributed to the results, the company said.
The group declared an interim cash dividend of 29 cents per share - up 16% on the previous year's 25 cents per share.
The inclusion of turnover from the Disaki acquisition for two months and acceptable volume growth from other divisions saw turnover up 12.0% to 484.2 million rand. This resulted in a 10.7% rise in operating profit to 59.4 million rand.
The group said its operating costs were well within expectations and increased in line with operational needs.
The weighted number of shares in issue increased marginally due to shares being taken up in terms of the Transpaco Share Option Scheme and this had a minimal effect on diluted earnings per share, it said.
Trsnapaco acquired Disaki Cores and Tubes, a former subsidiary of Nampak Products and South Africa's largest producer of cardboard cores and tubes, angle board, carton dividers and void fillers, with effect from 1 November 2010. The acquisition expanded Transpaco's geographical and product offering within the Cores Division in line with the group's growth strategy. The business consists of three manufacturing facilities situated in Gauteng, Western Cape and KwaZulu-Natal.
The cost of the acquisition was 42.6 million rand, of which 26.0 million rand was paid during the period. The final payment was made on 31 January and all payments were financed from existing cash resources.
Looking ahead, Transpaco said it would continue in its endeavours to achieve further growth and pursue appropriate acquisitions. - I-Net Bridge