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OneLogix - Unaudited Interim Results For The Six Months Ended 30 November 2004
OneLogix Group Limited
(Registration number 1998/004519/06)
Share code OLG
ISIN ZAE000026399
("OneLogix" or "the group")
HIGHLIGHTS
HEPS FROM CONTINUING OPERATIONS UP 25%
EPS FROM CONTINUING OPERATIONS UP 29%
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2004
CONDENSED CONSOLIDATED
INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
30 Nov 2004 30 Nov 2003 31 May 2004
R"000 R"000 R"000
Revenue 40,663 38,036 72,884
Earnings before interest,
taxation,
depreciation and
amortisation (EBITDA) 10,090 10,244 18,932
Depreciation 2,291 1,892 3,945
Operating profit 7,799 8,352 14,987
Amortisation of goodwill 1,557 1,557 3,114
Net interest paid 401 401 648
Profit before taxation 5,841 6,394 11,225
Taxation 2,237 2,393 3,561
Share of associate loss 154 - -
Profit from continuing
operations 3,450 4,001 7,664
Profit from discontinuing
operations - (410) (516)
Net profit attributable to
shareholders 3,450 4,411 8,180
Number of shares ("000):
- Total in issue 192,113 280,375 192,113
- Weighted average shares 196,606 280,375 276,484
Headline earnings per share
from continuing operations (cents)
- Basic 2.5 2.0 3.9
Headline earnings per share
(cents)
- Basic 2.5 2.1 4.1
Earnings per share from
continuing operations (cents)
- Basic 1.8 1.4 2.8
Earnings per share (cents)
- Basic 1.8 1.6 3.0
Calculation of headline
earnings
Net profit attributable to
shareholders 3,450 4,411 8,180
Adjusted for:
Amortisation of goodwill 1,557 1,557 3,114
Headline earnings 5,007 5,968 11,294
Profit from discontinuing
operations - (410) (516)
Headline earnings from
continuing operations 5,007 5,558 10,778
SEGMENTAL REPORTING
Revenue
Continuing operations
Logistics 33,008 30,990 58,016
Services 7,655 7,046 14,868
40,663 38,036 72,884
EBITDA
Continuing operations
Logistics 9,355 10,552 18,239
Services 2,196 1,505 3,974
Corporate (1,461) (1,813) (3,281)
10,090 10,244 18,932
Commitments
Operating lease commitments
(not exceeding five years) 3,030 3,711 3,740
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
at at at
30 Nov 2004 30 Nov 2003 31 May 2004
R"000 R"000 R"000
ASSETS
Non-current assets 34,718 33,616 32,556
Property, plant and equipment 17,007 10,725 13,008
Intangible assets 17,420 20,544 18,976
Investment in associate 291 - -
Deferred tax - 2,347 572
Current assets 17,707 21,487 16,986
Trade and other receivables 12,391 11,936 10,103
Cash resources 5,316 9,551 6,883
Total assets 52,425 55,103 49,542
EQUITY AND LIABILITIES
Equity
Ordinary shareholders" funds 30,553 34,127 26,503
Liabilities
Non-current liabilities 8,714 3,301 4,648
Interest-bearing borrowings 7,049 3,301 4,648
Deferred tax 1,665 - -
Current liabilities 13,158 17,675 18,391
Trade and other payables 9,511 11,746 11,570
Interest-bearing borrowings 3,492 3,429 4,150
Vendor liabilities - 2,500 2,500
Taxation 155 - 171
Total equity and liabilities 52,425 55,103 49,542
Net asset value per share
(cents) 15.5 12.2 13.8
Net tangible asset value per
share (cents) 6.7 4.8 3.9
CONDENSED CONSOLIDATED
CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six Six Twelve
months ended months ended months ended
30 Nov 2004 30 Nov 2003 31 May 2004
R"000 R"000 R"000
Net cash generated from
operations 5,313 13,540 22,214
Net cash flows from
investing activities (9,223) (1,981) (8,122)
Net cash flows from
financing activities 2,343 (6,589) (11,790)
Net (decrease)/increase in
cash resources (1,567) 4,970 2,302
Cash resources at beginning
of period 6,883 4,581 4,581
Cash resources at end of period 5,316 9,551 6,883
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Unaudited Unaudited Audited
Six Six Twelve
months ended months ended months ended
30 Nov 2004 30 Nov 2003 31 May 2004
R"000 R"000 R"000
Opening equity 26,503 29,716 29,715
New shares to be issued 600 - -
Shares repurchased including
costs - - (11,392)
Net profit 3,450 4,411 8,180
Closing equity 30,553 34,127 26,503
COMMENT
INTRODUCTION
The directors of OneLogix are pleased to present the unaudited interim results
for the six-month period ended 30 November 2004 ("the interim period"). The
unaudited interim results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
used in the preparation of these results are consistent with those used in the
audited annual financial statements for the year ended 31 May 2004.
As anticipated, the previously announced share buy-back resulted in a
substantial increase in headline earnings per share ("HEPS") and earnings per
share ("EPS") from continuing operations by 25% and 29%, respectively.
REVIEW OF OPERATIONS
The group"s businesses continued to perform well:
Vehicle Delivery Services ("VDS") invested substantially in infrastructure by
expanding its fleet and enhancing its vehicle tracking and IT systems to broaden
its foothold in the local market. As a result of these additional expenses of
approximately R1 million, EBITDA and operating profit were lower than the
previous comparable interim period.
GoLogix Media Express ("GME") operates in a highly price-sensitive environment
and pressure by customers has resulted in a slight decrease in margins for the
interim period. The group continues to address this by diversifying into similar
markets.
Initiatives launched by PostNet to boost revenue are currently underway,
including a refocusing on the office supplies market. In addition a concerted
refurbishment of retail stores across the country is being rolled-out. Further
initiatives are imminent.
FINANCIAL RESULTS
The group"s financial results for the interim period reflect revenue of R40,6
million, 7% up on the previous comparable interim period. EBITDA of R10,1
million decreased by 2% and operating income decreased by 7% to R7,8 million.
In addition to the impact of VDS" investment in its fleet and technology,
operating profit was further reduced by approximately R0,7 million additional
fuel expenditure as a result of the fuel crisis in Zimbabwe. Although a stable
source of fuel has now been sourced for Zimbabwe-bound vehicles, it is expected
that the premium on the procurement of this fuel will continue for the
foreseeable future.
Cash generated from operations of R5,3 million, despite reflecting a decrease
from the previous comparable interim period, remains strong and underpins
headline earnings. The group increased its interest-bearing debt by R1,7 million
in order to fund the R6,3 million invested in VDS" fleet and technology. The
vendor obligation of R2,5 million was repaid during the interim period leaving
the group with R5,3 million cash on hand.
In June 2004, OneLogix re-purchased 4 492 505 shares from shareholders who had
accepted the mandatory re-purchase offer. This re-purchase was funded by Java
Capital Holdings (Proprietary) Limited ("JCH"), which has made payment to
OneLogix of R0,6 million in cash on the basis that, in due course, OneLogix will
obtain shareholder approval to issue the 4 492 505 shares to JCH. In the
meantime, the requisite majority of shareholders has agreed irrevocably to
approve such issue of shares at the next general meeting of shareholders.
PROSPECTS
Revenue is historically weighted to the first half of the financial year.
However, the directors are confident that the group will show real growth in
HEPS over the prior year.
The group has finalised the financial mechanism for concluding a BEE deal and is
in advanced discussions with various BEE partners. The intention is to conclude
a deal within the next six months. The directors also continue to explore
acquisitive opportunities in line with the group"s growth strategy.
PEOPLE
Craig Rutters, the divisional MD of GME, resigned with effect from 31 January
2005. The group thanks him for his contribution and wishes him well in his new
venture. At the same time the group welcomes Geoff Milton as GME"s new MD.
Geoff has 11 years" experience in the courier industry and is well-equipped for
his new role within OneLogix.
OneLogix thanks its management, employees and PostNet business partners.
The group also thanks its customers, business advisors and shareholders for
their ongoing support.
DIVIDEND
In line with group policy no dividend has been declared for the interim period.
By order of the Board
Ian Lourens (CEO) Cameron McCulloch (FD)
15 February 2005
Directors: A C Brooking (Chairman)*, I K Lourens (CEO), C V McCulloch (FD), N J
Bester, A J Grant*#, J G Modibane*#
#Independent director
*Non-executive director
Registered office: 46 Tulbagh Road, Pomona, Kempton Park, 1619,
(PO Box 85392, Emmarentia, 2029)
Company Secretary: Probity Business Services (Proprietary) Limited
Transfer secretaries: Computershare Investor Services 2004 (Proprietary)
Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Date: 15/02/2005 12:27:27 PM Supplied by www.sharenet.co.za
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