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OneLogix - Audited Results for the year ended 31 May 2003
OneLogix Group Limited
(Registration number 1998/004519/06)
Share code OLG ISIN ZAE000026399
("OneLogix" or "the group")
SALIENT FEATURES
* Successful closure of all loss-making divisions
* Reduction of debt, contingent liabilities and commitments
* Successful completion of R10m rights issue underwritten by
management
AUDITED RESULTS FOR THE YEAR ENDED 31 MAY 2003
CONDENSED CONSOLIDATED INCOME STATEMENT
Audited Audited
Year Year
ended ended
31 May 2003 31 May 2002
R"000 R"000
Revenue 61 112 62 470
Earnings before interest, taxation,
depreciation and amortisation (Ebitda) 15 011 18 263
Depreciation 3 448 1 036
Operating profit 11 563 17 227
Amortisation of goodwill 3 098 3 135
Net interest paid 3 948 633
Exceptional items 383 413
Profit before taxation 4 134 13 046
Taxation 2 537 5 290
Profit from continuing operations 1 597 7 756
Loss from discontinuing operations 5 519 10 154
Loss arising on discontinuance of operations 14 142 5 041
Impairment and amortisation of intangibles on
discontinuing operations - 24 441
Net loss attributable to shareholders (18 064) (31 880)
Number of shares in issue ("000)
- Total 280 375 138 711
- Weighted 178 453 180 750
Headline earnings per share from continuing
operations (cents)
- Basic 2,9 6,3
Headline (loss)/earnings per share (cents)
- Basic (0,3) 0,6
Earnings per share from continuing
operations (cents)
- Basic 0,9 4,3
Loss per share (cents)
- Basic (10,1) (17,6)
Calculation of headline earnings
Net loss attributable to shareholders (18 064) (31 880)
Adjusted for:
Amortisation of goodwill 3 098 3 135
Exceptional items 383 413
Loss arising on discontinuance of operations 14 142 5 041
Impairment and amortisation of intangibles on
discontinuing operations - 24 441
Headline (loss)/earnings (441) 1 150
Loss from discontinuing operations 5 519 10 154
Headline earnings from continuing operations 5 078 11 304
Analysis of exceptional items
Share trust write-down 752 413
Profit on sale of JV (369) -
383 413
Analysis of loss arising on discontinuance
of operations
Closure costs and impairments 5 486 977
Negative goodwill written off (347) -
Loss on sale of X Press Net (Pty) Ltd - 4 064
Reduction in amount owing by X Press Net (Pty) Ltd 9 003 -
14 142 5 041
SEGMENTAL REPORTING
Revenue
Continuing operations
Logistics 48 868 49 314
Services 12 244 13 156
Corporate - -
61 112 62 470
Discontinuing operations
Parcel distribution - 70 224
Gologix Courier 12 942 26 179
Technology and other services - 926
12 942 97 329
EBITDA
Continuing operations
Logistics 15 533 17 403
Services 2 536 4 963
Corporate (3 058) (4 103)
15 011 18 263
Discontinuing operations
Parcel distribution - (4 414)
Gologix Courier (7 056) (6 038)
Technology and other services - (2 175)
(7 056) (12 627)
Commitments
Operating lease commitments (not exceeding five years) 4 288 11 580
Contingencies
OneLogix continues to guarantee certain of the asset-based operating lease
commitments and finance facilities on behalf of X Press Net (Pty) Ltd, its
former distribution business, amounting to approximately R3,4 million (not
exceeding five years). Certain securities and sureties are in place to offset
any such contingencies which may arise.
Note:
1. The comparatives have been adjusted in order to reflect the results of
Gologix Courier as a discontinued operation in the prior year.
CONDENSED CONSOLIDATED BALANCE SHEET
Audited Audited
31 May 2003 31 May 2002
R"000 R"000
ASSETS
Non-current assets 37 612 50 696
Property, plant and equipment 10 585 7 870
Intangible assets 22 111 27 388
Other assets - 12 533
Deferred tax 4 916 2 905
Current assets 17 513 30 570
Trade and other receivables 12 932 22 645
Cash resources 4 581 7 925
Total assets 55 125 81 266
EQUITY AND LIABILITIES
Equity
Ordinary shareholders" funds 29 716 38 180
Liabilities
Non-current liabilities 7 404 13 935
Interest bearing borrowings 4 904 5 679
Vendor liabilities 2 500 8 256
Current liabilities 18 005 29 151
Trade and other payables 8 958 10 138
Interest bearing borrowings 4 292 2 176
Vendor liabilities 4 123 1 785
Bank overdraft - 14 446
Taxation 632 606
Total equity and liabilities 55 125 81 266
Net asset value per share (cents) 10,6 27,5
Net tangible asset value per share (cents) 2,7 7,8
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Audited Audited
Year Year
ended ended
31 May 2003 31 May 2002
R"000 R"000
Opening equity 38 180 100 719
New shares issued less costs (including the
issue of treasury shares 9 600 9 119
Shares issued to vendor - 7 000
Adjustment to goodwill previously written-off
Against share premium - 7 607
Shares repurchased including costs - (54 385)
Net loss (18 064) (31 880)
Closing equity 29 716 38 180
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Year Year
ended ended
31 May 2003 31 May 2002
R"000 R"000
Net cash generated from operations 6 839 918
Net cash flows from investing activities (5 740) (34 315)
Net cash flows from financing activities 10 003 (47 542)
Net increase/(decrease) in cash resources 11 102 (80 939)
Cash resources at beginning of year (6 521) 74 418
Cash resources at end of year 4 581 (6 521)
Comments
* INTRODUCTION
The annual financial statements have been audited by PricewaterhouseCoopers
Inc. and the audit opinion is available for inspection at OneLogix"s registered
office. The audited annual financial statements have been prepared in accordance
with South African Statements of Generally Accepted Accounting Practice. The
accounting policies used in the preparation of these audited annual financial
statements are consistent with those used in the audited annual financial
statements for the year ended 31 May 2002.
Despite difficult trading conditions and substantial closure costs incurred
in respect of the GoLogix Courier division, OneLogix managed to improve its cash
position and to reduce its risk profile. Factors including prudent management of
the closure and a reduction in debt across the group have contributed to the
group"s restored operational profitability post30 November 2002.
* THE YEAR
Operations
Although performances from Vehicle Delivery Services and GoLogix Media
Express slowed during the year, these businesses continue to dominate their
respective markets of auto-logistics and express distribution of print material.
Strong cash generation and tightened working capital discipline enabled these
businesses to maintain healthy margins and to reduce debt while remaining cash
positive at year-end. PostNet"s successful nationwide network continues to offer
distinctive business and communication service solutions to an entrenched and
expanding customer base.
Events
As announced on 26 May 2003 OneLogix successfully completed a R10 million
rights issue, further entrenching management"s ownership in the group.
Closure and Disposals
As reported in the group"s interim results OneLogix closed the GoLogix
Courier division with effect from 30 November 2002 resulting in an after-tax
loss of R5,5 million, in addition to an after-tax trading loss of R5,5 million
incurred for the interim period.
Shareholders" attention is drawn to the announcement dated 21 June 2002
recording the sale by OneLogix to a management-led consortium of its
distribution business, X Press Net (Pty) Ltd ("X Press Net"), trading as GoLogix
Distribution. On 3 June 2003 the group concluded a settlement agreement with X
Press Net in terms of which the group reduced the sum owing by X Press Net by
R9,0 million and received a R1,5 million immediate cash
payment together with a R0,5 million cash payment due over the first half of the
current financial year. The settlement agreement further resulted in OneLogix
reducing its commitments and undertakings.
* FINANCIAL RESULTS
OneLogix"s financial results for continuing operations for the year reflect a
2% decline in revenue to R61,1 million, an 18% decrease in EBITDA to R15 million
and a 33% decrease in operating income to R11,6 million.
The total once-off after-tax losses in respect of the discontinuing
operations amounted to R19,7 million for the year. Interest paid increased
substantially to R3,9 million as a result of interest bearing debt incurred to
expand the VDS fleet, finance the closures and disposals of loss-making
divisions to date and pay vendor liabilities.
Exceptional items of R0,4 million relate primarily to the write-down of the
OneLogix Share Trust loan.
* PROSPECTS
The group will continue to focus on organic growth of its leading niche, high
margin, cash generating businesses. Sustained positive cash flows expected from
these operations, underpinned by the proceeds of the rights issue, will continue
to bolster the group"s balance sheet and enable OneLogix to pursue growth
opportunities going forward.
* PEOPLE
As reported in the group"s interim results Ian Lourens, formerly OneLogix
Chief Operating Officer, was appointed as Chief Executive Officer with effect
from 1 October 2002.
The group thanks its management, employees, PostNet franchisees and business
partners as well as its business advisors, shareholders and customers for their
ongoing support.
* DIVIDEND
In line with group policy no dividend has been declared for the year.
By order of the Board.
Ian Lourens (CEO) Cameron Mc Culloch (FD)
22 August 2003
Directors: Ian Lourens (Chief Executive Officer);
Cameron Mc Culloch (Financial Director); Neville Bester;
Alec Grant*; Benjamin Liebmann*; Joe Modibane*
Tony Wiese* *Non-executive director
Registered office: C/o Probity Business Services (Pty) Ltd,
Unit C1, The Guild Office Park,
2 Guild Road, Parktown 2193
(PO Box 85392, Emmarentia 2029)
Transfer secretaries: Computershare Limited,
70 Marshall Street,
Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
Company secretary: Probity Business Services (Pty) Ltd,
Unit C1, The Guild Office Park,
2 Guild Road, Parktown 2193
(PO Box 85392, Emmarentia 2029)
Date: 22/08/2003 05:45:41 PM Supplied by www.sharenet.co.za
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