Hirt & Carter lifts Tiso Blackstar’s interim profit
BusinessLIVE’s JSE-listed owner Tiso Blackstar grew its interim after-tax profit 22% to R206m during the six months to end-December.
Revenue declined by 0.8% to R4.5bn, the company said in its interim results statement on Tuesday.
Tiso Blackstar’s best performer was retail marketing and packaging company Hirt & Carter, which contributed 61% of its after-tax profit.
Hirt & Carter grew its revenue contribution 16% to R1bn, contributing 22% of the group’s R4.5bn total revenue.
This failed to entirely offset a 6% decline in the revenue from its media division and 10% decline in revenue from its 51%-owned steel fabrication subsidiary Robor, which both contributed about R1bn to the top line.
Tiso Blackstar’s biggest revenue contributor was Consolidated Steel Industries (CSI), which grew its revenue 3.3% to R1.3bn.
Besides Hirt & Carter increasing its net profit contribution by 8.3% to R126m, Tiso Blackstar’s bottom line was also bolstered by Robor turning to a profit of R37.5m from a R18.4m loss in the matching period.
CSI’s profit contribution fell 22% to R19m, and the media division’s profit halved to R54m from R101m.
"Unfortunately, the results from the group’s non-core steel interests, namely Robor and CSI, as well as Kagiso Tiso Holdings (KTH), dragged down a good performance from the core results, but plans are in place to resolve and reduce exposure to these assets," the results statement said.
"By year-end, the group is aiming for non-core assets not to be consolidated, as the group will have either reduced its controlling interest, disposed of them entirely or classified them as non-current assets held for sale."
Tiso Blackstar spent R2.2m repurchasing 300,000 of its shares at an average price of R7.19 during the reporting period.
Its share price was down 6% to R6.30 at 2.15pm on Tuesday.