CARGO Carriers successfully weathered the global economic crisis and recession in the past financial year.
The listed specialist logistics and transportation company on Friday reported that it expected headline earnings a share on the year to February to be between 130 percent and 140 percent higher than the previous year.
The directors said they were pleased with the results achieved in light of the global economic downturn, which had a negative impact on the local economy.

Cargo Carriers said in a statement to the JSE that the increase in headline earnings was “somewhat exaggerated” due to the prior year adjustment related to deferred tax released on the sale of a letting enterprise, including the property, which resulted in a 38c write-down against headline earnings a share.
Excluding the effects of this prior year write-down, this translated into an increase in headline earnings of between 30 percent and 40 percent.
Basic earnings a share are expected to be between 50 percent and 60 percent higher for the same period.

The company said earnings a share were improved through the careful management of costs and overheads, the disposal and impairment of non-operating assets, and the reversal of prior period impairment related to the consolidation of its Zimbabwe operations, which had improved since the dollarisation of that country’s economy and the restoration of sound economic policies.
This resulted in the financial performance of the Zimbabwe operations being material to the group as a whole and it was incorporated into the group’s results for the year.

The company said the accounting treatment in terms of international financial reporting standards (IFRS) on the commencement of consolidation of the Zimbabwe operations gave rise to a balance sheet take-on gain of R2.5 million, which was recognised in the income statement.