LOW GAMING income and a slowdown in business for Rennies held back Safren turnover to an increase of only 12% for the financial year 1995/1996.
Safren, the holding company of Safmarine, Rennies and gambling, hotel and cinema company Kersaf, increased turnover to R6,557bn (R5815bn) for the year.
Safren executive chairman Buddy Hawton says in the company's annual report that the group's prospects con- tinue to be favourable. Operating profit climbed 14,2% to R1,1bn (R0,975bn).
Safren's balance sheet and capital position remained strong in spite of substantial investments during the year.
Total shareholders funds increased to R5bn while borrowings increased to R677m giving a debt to equity ratio of 13,5%.
Safmarine, the group's star performer, increased operating profit to 30,2%, or R315,4m in spite of fleet additions of R40m.
Safmarine is now operating as one of the predominant north/south carrier lines.
This major development is proof of Safmarine's ability to adapt to the rapidly changing trends in world shipping, Hawton said.
Hawton said Safmarine's diversified interests would cushion it from the expected slowdown in the local and international economies. Profit would continue to grow with the introduction of new vessels. The reefer market was expected to remain firm, adding to growth.
Rennies would also increase profitability over the coming year. In particular its logistics unit was winning significant new business, contributing to its overall future performance.
