Transpaco shares recover strongly
The total dividend for the year was up 12.5% from last year’s
Small packaging group Transpaco rebounded strongly on the JSE after reporting a jump in profit in tough trading conditions as management’s strict cost control, coupled with aggressive sales and marketing efforts, paid off. On Wednesday the share price of Transpaco, which operates in the plastics, paper and board segments, closed more than 8% higher, albeit in thin trading. A squeeze on consumer spending and price resistance from clients has put pressure on profitability at smaller packaging companies in the last few years. But the focus on cost controls at Transpaco saw the operating margin increase to 8.1% from 7.4% for the year to end- June, with headline earnings increasing 13% to 297c per share. Revenue grew 5% to more than R1.7bn. Transpaco’s board also made a confident pronouncement around prospects for the new financial year by declaring a final dividend of 90c a share, which hiked the full year payout 12.5% to 135c a share.
CEO Phillip Abelheim said the performance was...
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