Chairman’s Report Further diversification of the group took place during the year under review, with the most notable development being the introduction of a bulk product trading arm which complements the shipping activities. Acquisitions were also made in the landside activities as well as an increase in warehousing and terminal capacity within existing businesses. Shipping markets remained relatively high during the year, although bulk shipping markets did decline in the second half of 2005. The group, however, continued to manage its exposure to markets through a diversification of activities within the dry and wet sectors and the container market, and through the fixing of charters and cargo contracts. Business Environment During 2005 the South African economy had its strongest economic growth since the early 1980s. Interest and inflation rates are at their lowest level for many years. While the strong Rand continues to impact on the group’s financial results, this has been counteracted by the strong shipping markets. From an international perspective there has been significant economic upturn, driven mainly by China, Japan, India and other developing economies. This has been achieved against the backdrop of increasing interest rates and high energy prices. Financial Review The group has reported record earnings of R851 million compared to R546 million in 2004. The board has maintained a 3,5 dividend cover and a final dividend of 32 cents per ordinary share has been declared, bringing the total for the year to 52 cents compared to 35 cents for the previous year. Equity On 27 July 2005 shareholders approved the creation of cumulative, non-redeemable, non-participating, non-convertible preference shares. The initial offer of 5 000 000 shares was issued and listed in 2005 and the balance of 2 500 000 shares on 17 February 2006. This has provided additional permanent capital of R754 million for the group. Shareholders also approved a 5 for 1 share subdivision which took effect on 31 October 2005. The share split was undertaken to increase the liquidity of the share and to align the price with the group’s peers on the JSE. These objectives have been achieved. Group Activities The past year has been another record year with the group reporting the best financial results in its history. The group has grown substantially and is well positioned in the mid cap sector of the JSE with a market capitalisation of R6,5 billion. A solid platform of strong cash flows and good low cost assets present further exciting opportunities for the future of the group.