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OneLogix Group Limited - Audited Consolidated Financial Results For The Year
Ended 31 May 2002
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG ISIN: ZAE000026399
HIGHLIGHTS
* Revenue from continuing operations up 41%
* EBITDA from continuing operations up 23%
* Operating profit from continuing operations up 15%
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2002
Condensed Consolidated Income Statement
Audited Audited
Year ended Year ended
31 May 2002 31 May 2001
R`000 R`000
Revenue 88,649 62,871
Earnings before interest, taxation,
depreciation, amortisation (EBITDA) 12,225 9,925
Depreciation 1,962 977
Operating profit 10,263 8,948
Net interest paid/(received) 633 (9,861)
Exceptional items 4,590 563
Amortisation of goodwill 3,135 2,824
Profit before taxation 1,905 15,422
Taxation 3,201 3,276
Net (loss)/profit from continuing operations (1,296) 12,146
Loss from discontinued operations 5,279 1,891
Loss arising on discontinuance of operations 5,041 -
Impairment and amortisation of goodwill
on discontinued operations 20,264 714
Net (loss)/profit attributable
to shareholders (31,880) 9,541
Number of shares in issue (`000):
- Total 138,711 194,812
- Weighted 180,750 194,812
- Headline earnings per share (cents) 0.6 7.0
- Headline earnings per share
from continuing operations (cents) 3.6 8.0
- (Loss)/earnings per share (cents) (17.6) 4.9
- (Loss)/earnings per share from
continuing operations (cents) (0.7) 6.2
Calculation of headline earnings
Net (loss)/profit attributable to shareholders (31,880) 9,541
Adjusted for:
Amortisation of goodwill 3,135 2,824
Exceptional items 4,590 563
Loss arising on discontinuance of operations 5,041 -
Impairment and amortisation of goodwill on
discontinued operations 20,264 714
Headline earnings 1,150 13,642
Loss from discontinued operations 5,279 1,891
Headline earnings from continuing operations 6,429 15,533
Analysis of exceptional items
Share trust write down 413 646
Profit on sale of subsidiary - (83)
Asset impairments and write offs 4,177 -
4,590 563
Segmental reporting
Revenues and earnings before interest, tax, depreciation and amortisation
(EBITDA) of the primary business segments were as follows:
Revenue EBITDA
2002 2001 2002 2001
Continuing R`000 R`000 R`000 R`000
Logistics 75,493 50,997 11,365 12,087
Services 13,156 11,874 4,963 4,305
Corporate - - (4,103) (6,467)
88,649 62,871 12,225 9,925
Discontinuing operations
Parcel distribution (previously
included in "Logistics") 70,224 67,055 (4,414) (551)
Technology and other services
(previously included
in "Services") 926 1,127 (2,175) (1,418)
71,150 68,182 (6,589) (1,969)
2002 2001
Commitments R`000 R`000
Equipment and premises operating
lease commitments (not exceeding
five years) 11 580 17 298
Contingencies
OneLogix continues to guarantee certain of the asset-based operating lease
commitments of X Press Net (Pty) Ltd (not exceeding five years), its former
parcel distribution business, amounting to approximately R15,1 million.
Securities and sureties are in place to offset any such contingencies which may
arise.
Notes
1. The results are prepared in accordance and comply with South African
Statements of Generally Accepted Accounting Practice.
2. The accounting policies used in the preparation of the financial results are
consistent with those adopted in the annual financial statements for the year
ended 31 May 2002.
3. The results have been audited by PricewaterhouseCoopers Inc. and the
unqualified audit opinion is available for inspection at the company`s
registered office.
Condensed Consolidated Balance Sheet
Audited Audited
31 May 2002 31 May 2001
R`000 R`000
ASSETS
Non-current assets 50,696 60,719
Property plant and equipment 7,870 6,397
Intangible assets 27,388 50,595
Other assets 12,533 1,164
Deferred tax 2,905 2,563
Current assets 30,570 120,290
Cash resources 7,925 81,928
Trade and other receivables 22,645 38,362
Total assets 81,266 181,009
EQUITY AND LIABILITIES
Equity
Ordinary shareholders` funds 38,180 100,719
Liabilities
Non-current liabilities
Interest bearing borrowings 5,679 4,315
Vendors` liabilities 8,256 3,000
Current liabilities 29,151 72,975
Trade and other payables 12,314 24,517
Vendors` liabilities 1,785 40,948
Taxation 606 -
Bank overdraft 14,446 7,510
Total equity and liabilities 81,266 181,009
Net asset value per share (cents) 27.5 51.7
Net tangible asset value per issued share (cents) 7.8 25.7
Condensed Consolidated Statement of
Changes in Equity Audited Audited
Year ended Year ended
31 May 2002 31 May 2001
R`000 R`000
Opening equity 100,719 87,971
Shares issued less costs (including the issue
of treasury shares) 9,119 (115)
Shares to be issued to vendor 7,000 -
Adjustment to goodwill previously
written off against share premium 7,607 3,322
Shares repurchased including costs (54,385) -
Net (loss)/profit (31,880) 9,541
Closing equity 38,180 100,719
Condensed Consolidated Cash Flow Statement
Audited Audited
Year ended Year ended
31 May 2002 31 May 2001
R`000 R`000
Net cash generated/(utilised) in operations 918 (1,955)
Net cash flows from investing activities (34,315) (45,989)
Net cash flows from financing activities
(including share repurchase) (47,542) 176
Net decrease in cash resources (80,939) (47,768)
Cash resources at beginning of period 74,418 122,186
Cash resources at end of period (6,521) 74,418
COMMENTS
Introduction
The directors of OneLogix Group Limited ("OneLogix" or "the group") present
the audited consolidated financial results for the year ended 31 May 2002 ("the
year").
International and local business landscapes altered dramatically during the
year. Tougher trading conditions and waning support for new economy
opportunities impacted on the group. OneLogix therefore decisively realigned
its strategy in order to deliver sustainable shareholder returns in the future.
Start-up business units operating in highly competitive, cyclical
environments and those relying on new economy growth were disposed of or closed.
Goodwill and other intangible assets were impaired to appropriate conservative
values.
Effective 20 June 2001 R54 million was returned to shareholders following the
pro-rata share repurchase of 67 500 000 shares. Interest received was
consequently reduced by R5,5 million for the year.
Profile
OneLogix has been streamlined into a logistics fulfilment group focussing on
niche, high margin, cash-generating businesses with predictable earnings
streams.
Review of Operations
Vehicle Delivery Services, the sub-Saharan leader in auto logistics, and
GoLogix Media Couriers, the African leader in express distribution of printed
material, continued to perform exceptionally and again exceeded expectations.
PostNet continued its strong performance, also exceeding expectations. During
the year the prestigious "Franchisor of the Year" accolade was awarded to
PostNet in recognition of its successful nationwide network of 227 stores.
Profits from these businesses were eroded to an extent by start-up pressures
in GoLogix Couriers, which failed to meet cash generation and operating profit
expectations. The business has been rationalised and will capitalise on
improved efficiencies and management to generate better results from its
entrenched customer base. GoLogix Couriers has become the e-fulfilment partner
of choice to high profile customers including flySAA.com, Digital Mall,
Megashopper and McCarthy Online.
Disposal and Closures
As announced on 21 June 2002, the group disposed of X Press Net (Pty) Ltd
encompassing GoLogix Distribution, to a consortium including the management of
the business. The effective date for accounting purposes is 15 February 2002.
Following underperformance against projected business plans and budgets,
procurement solutions provider ThinkLogix Strategic Sourcing; FPLogix, a mail
management joint venture and SMME Internet portal BizzNet, were closed.
Financial Results
Based on the group`s continuing operations and current capital structure,
revenue for the year increased by 41% to R88,7 million, EBITDA rose 23% to R12,2
million and operating profit grew 15 % to R10,3 million.
The disposal and closures resulted in a R5 million loss from discontinuance of
the operations, and impairment of goodwill relating to discontinued operations
of R18,9 million.
Interest received was reduced from R9,9 million to interest paid of R0,6
million as a result of the share repurchase and payment of vendor liabilities.
Exceptional items of R4,6 million relate mainly to the impairment of
intangible assets.
Net headline earnings per share from continuing operations therefore amounted
to 3,6 cents per share, compared with 8 cents per share for the previous
financial year.
Prospects
The restructuring and consolidation of the group will enable OneLogix to
focus on its niche, high margin business units to ensure sustainable organic
growth.
People
Neville Bester, Managing Director of VDS, was appointed to the main board as
Executive Director with effect from 13 August 2002. Peter Forshaw resigned as
Executive Director of OneLogix effective from 1 July 2002. OneLogix thanks
Peter for his valuable contribution.
OneLogix thanks its management, employees, PostNet franchisees and business
partners for their persistence and commitment. The group also thanks its
business advisors, and its 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.
Tony Wiese (CEO) Cameron Mc Culloch (FD)
29 August 2002
Directors: Tony Wiese (Chief Executive Officer); Neville Bester; Alec Grant;
Benjamin Liebmann; Ian Lourens (Chief Operating Officer);
Cameron Mc Culloch (Financial Director);
Joe Modibane (Non-executive director)
Registered office: C/o Probity Business Services (Pty) Ltd,
Unit C1, The Guild Office Park, 2 Guild Road, Parktown
(PO Box 85392, Emmarentia 2029)
Transfer secretaries: Computer Share Investor Services Limited
11 Diagonal 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
(PO Box 85392, Emmarentia 2029)
Date: 28/08/2002 04:49:57 PM Supplied by www.sharenet.co.za
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