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NPK
NPK
NPK - Nampak Limited - Revised strategy contributes to improvement in
performance
NAMPAK LIMITED
Registration number 1968/008070/06
Incorporated in the Republic of South Africa
ISIN: ZAE000071676
Share code: NPK
("Nampak")
REVISED STRATEGY CONTRIBUTES TO IMPROVEMENT IN PERFORMANCE
Nampak today released its results for the six months ended 31 March 2010.
Operating profit increased by 13% following good turnarounds in the Corrugated
business in South Africa and the Leeds, UK folding carton business. The sale or
closure of some loss-making businesses also contributed to the improvement. The
operating margin improved from 7.0% to 8.5%.
Headline earnings per share were 16% higher as a result of the improvement in
operating profit and a reduction in finance costs.
The dividend has been increased by 39%.
Excluding the effects of the stronger rand, revenue was similar to last year.
Total capital expenditure of R346 million was well down on last year`s R759
million and is consistent with the group`s stated strategy of limiting capital
expenditure to less than depreciation.
CEO Andrew Marshall said, "We are delighted with our increased operating profit
and headline earnings, as well as the improvement in our trading margin.
The strategy implemented in 2009 of fixing, selling or closing underperforming
businesses and the increased focus on operational performance is beginning to
produce improved results. In addition, we have continued to invest in those
businesses where we have sustainable competitive advantages.
There has been an ongoing focus on working capital and capital expenditure has
been curtailed. This has led to a significant reduction in our debt and an
improvement in the group`s gearing.
We are also very proud of our latest Empowerdex BBBEE level 4 rating, up from
level 6 in the previous year as a result of a number of initiatives across the
group.
As we do not anticipate a repeat of the losses that occurred in the 2nd half of
2009, I am confident of a considerable improvement in profits for the year
ending September 2010".
Contact:
27 May 2010
Nampak Investor Relations
Graham Hayward
Tel: 011 719 6320
Cell: 082 800 7863
graham.hayward@za.nampak.com
Date: 27/05/2010 15:37:01 Produced by the JSE SENS Department.
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