Tiger Automotive reports that in its first full year as a company listed with South Africa’s JSE stock exchange in its own right, it has achieved a 19% increase in headline earnings, to Rs 1.242 (£0.085) a share.
Revenue has risen 17.3% to Rs 1.1 billion (£75.3 million). The company reports that these results counter the typical pattern of lower earnings in the second half. At the half-year stage, headline earnings were 15.2% at Rs 0.61 (£0.042), and the forecast was for a slight increase in full-year earnings.
“This pleasing rise in earnings was achieved because we were able to rectify – although not completely – problems that impacted on the first half,” said group managing director Keith Rivers.
Global sales of the company’s TSW aftermarket wheels maintained market share year-on-year in what the company has described as a “tough trading environment.” Rivers said the earnings increase for the year reflects the benefits – which came through in the second half – of improved deliveries from key supplier Yokohama, the resumption of normal supplies of the Runway budget tyre line from China, and the retraction by the South African Revenue Service of what Tiger Automotive called the “discriminatory” 16.5% anti-dumping duty imposed on certain imported Chinese tyres.
These factors have enabled Tiger Automotive’s wholesale business to budget on an improved performance in the coming (2008) year.
