AltX-listed OneLogix continued to support its positioning as a leading logistics group in Southern Africa with another exceptional performance for the six months to November 2011. Both revenue and operating profit were up over 30%. The group effectively capitalised on its leading brands and prior investment in systems and new initiatives, with favourable trading conditions boosting growth.
Revenue of R450 million and operating profit of R55 million both reflected healthy increases. When taking into account the fuel price hikes during the period, revenue grew to R430 million, or 24%, over the comparative period. CEO Ian Lourens explains that these costs are ultimately recovered from customers, making the higher revenue figure the more appropriate measure of growth. Headline earnings per share increased 17% to 12,1 cents despite more shares in issue toward following the group’s BEE partner converting its shares into listed entity.
Strict cost control saw cash from operations up by 37%, on a par with the growth in operating profit. The group’s performance prompted OneLogix to declare an interim distribution of 4,5 cents a share.
Lourens says the group’s entrepreneurial culture and superior leadership were key drivers of performance. “OneLogix has a decentralised operating system which empowers and incentivises individual group companies to grow and excel. They are then supported by experienced oversight at group level for optimum performance.”
Both auto-logistics companies delivered stellar results for the period. Vehicle Delivery Services (“VDS”) and Commercial Vehicle Delivery Systems (“CVDS”) retained and enhanced their market leadership positions. VDS also weathered its first illegal strike, reaching a prompt amicable solution, which Lourens says has “strengthened the relationship between management and VDS drivers”.
RFB Logistics (“RFB”) and OneLogix Projex, in the freight and abnormal load markets, also performed well. RFB outstripped expectations by effectively using its expanded fleet to increase its cross-border work into Southern Africa. Start-up OneLogix Projex continued to expand its footprint and seize market share in project logistics. Atlas Panelbeaters similarly delivered a good performance, reaping the benefits of prior improvements at systems and operating levels.
The group’s retail and media companies were a more mixed bag. “PostNet took a slight knock when it lost an annuity income stream from the Fax2Email programme, which has since been replaced,” explains Lourens. Nonetheless the company remains a sound contributor to group results. “PostNet continues to deliver consistent annuity income with high margins,” he says. Magscene continued to capture increasing market share by acquiring new international titles and broadening its presence in the retail market.
Looking ahead Lourens says management will remain mindful of the risks and challenges facing OneLogix, emphasising constant vigilance and immediate redress. He concludes that he is confident of a respectable performance for OneLogix in the next six months with a major focus on growing business in Southern Africa. “We will also continue to assess suitable acquisition opportunities.”