Transport group, Clan Holdings, in what is says was one of the most difficult years in the recent history of the company, saw its earnings only grow by 8.8 percent in the year ending December 1998 but adds that the growth showed a slight recovery in the second six months after an 11 percent reduction in profits in the first half ending June.
Turnover declined from $197.6 million to $179.7 million but profit attributable to shareholders was slightly up from $15.5 million to $16.9 million but the company says the decline in turnover was due to a change in accounting turnover figures and profit for the tyre operations which are now disclosed as those of an associate company.
The company says the transport industry was severely affected by numerous inflationary induced cost increases which saw spares go up 190 percent, the diesel price by 94 percent and tyres by 81 percent per running kilometre.
Trek and DAB Haulage achieved slight increases in profit but Clan, the main operating company saw its contribution to group operating profit decline from 84 percent to 74 percent.
The industrial division saw its profits increase by 41 percent.
The company says although it is now in a stronger position than previously, the “chaotic government decision making” makes it difficult to predict the future with any certainty.
“The resilience as shown by most companies but which is now reaching the pain barrier will no doubt enable the group to achieve further profit growth in the coming year,” the company says.
“The level of this growth will, however, be determined by the next batch of economic fundamentals.”