The strong base developed in previous years continued to reap rewards with a 53% growth in headline earnings per share to R1,85. Shipping Services was again the major contributor to group profits from its diversified fleet of new, low cost ships, while Trading, Freight and Financial Services had good profit growth from a low base. Trading Environment Shipping markets continued to remain at high levels during the year with some decline in the dry bulk markets being offset to some degree by stronger product and chemical tanker markets. China was again the major driver of shipping demand, but India, Japan and a resilient USA economy also contributed. Ship newbuildings, delivered during the year, kept shipping rates in check, but factors such as scrapping of old ships, new regulatory requirements, shortages of oil refining capacity and the expected continued economic growth from the world’s major economies continue to keep shipping markets at historically high levels. The predominantly Southern African based landfreight logistics environment was very buoyant, mainly as a result of the strong local economy and the increased import and export requirements. Demand for agricultural and mining commodities was firm as a result of the strong local and world economies. Financial This annual report has been prepared in accordance with IFRS. IFRS and the revised IAS 39 Financial Instruments and IAS 17 Operating Leases were adopted with effect from 1 January 2005. The effect of the adoption of IFRS, IAS 39 and IAS 17 is set out in the Statement of Changes in Equity and reconciliation of previous SA Accounting Standards to IFRS included in this report. The previous year’s figures have been restated for the effects of IFRS, IAS 39 and IAS 17. Group revenue was 150% up on last year due to increased business activities, the acquisition of the bulk product trading businesses and the consolidation of Röhlig-Grindrod which was previously equity accounted. Operating margins have reduced due to the inclusion of these low margin businesses. Chief Executive Officer’s Report