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OneLogix, the JSE-listed supply chain logistics fulfilment group, has reported maiden annual headline earnings per share (HEPS) of 7 cents, meeting its forecast set out in the revised listing particulars.
The group posted revenue of R134,6 million in line with expectations, and headline earnings of R13,6 million.
OneLogix reverse-listed into Venmil Limited effective 31 May 2000,
transferring from the "Financial Investment Trust" to the Industrial - "Services" sector of the JSE Securities Exchange SA on 11 September 2000. Tony Wiese, OneLogix CEO, says that the group's transformation from a cash shell to a fully operational supply chain logistics provider has been successful. "Our integration of new economy expertise with physical
logistics, and distinctive access to the PostNet retail counter network, distinguish us on the supply chain logistics market. And the managed fleet that underpins our real world logistics capability means that we do not have the burden of assets and debt typical of traditional transport companies," he adds.
More mature group businesses such as GoLogix Media Couriers and Vehicle Delivery Services contributed significantly to operating profit during the year under review, off-setting the initial phases of the younger businesses. "This is an exciting blend of operations," says Wiese, "as we will see our more established businesses sustain their revenue and earnings streams going forward while PostNet and our start-ups drive bottom-line growth."
Implementing its strategy to dominate select niche logistics markets, OneLogix acquired the business of Vehicle Delivery Services (Pty) Limited, the sub-Saharan auto logistics leader that transports vehicles from SA to all the major southern African cities. Its in-depth experience and long- standing customer base make VDS the dominant player on this market.
The group's equal partner joint ventures with The IQ Business Group, SA's largest private IT group; Francotyp Postalia SA, the SA arm of Europe's leading mailroom technology supplier; and Independent Newspapers' online division Independent Online (IOL), further expanded the range and enhanced the quality of its services. Their earnings contributions are expected in the medium-term.
The 500 corporates introduced by an ongoing customer referral agreement with Pro Freight Express (Pty) Ltd, one of the country's largest domestic and international parcel distributors, immediately increased the volume of business serviced by the group's infrastructure with no concomitant investment in assets or increase in debt.
"The growth spurt in our overall customer base to 2000 high profile
corporate customers including SAA, Edgars, Johnson & Johnson, Toyota and Megashopper has proved the viability of our business model," says Wiese. "And our 30 000 SME customers whose essential day-to-day business needs we fulfil, strengthen this."
He points to the OneLogix team as the force behind the success of the past year. "Management and our 1700-strong team have delivered consistent service excellence to our customers. As a result they have overcome the challenge of a weak market to build a solid platform for future growth," he says.
Post year-end the group has returned R54 million to shareholders following its pro-rata share repurchase. "The buy-back will improve future EPS and even more strongly incentivise management by enabling them to hold a greater stake in the group," Wiese says.
Looking ahead Wiese expects the group's focussed strategy, underpinned by strict financial discipline, to yield positive revenue and operating growth. Ends. Issued by: Nicole Sacks 083 287 2771 On behalf of: OneLogix Group Tony Wiese, CEO (011) 805 8036/ 083 410 3918 Issue date: 21 August 2001
FYI - OneLogix operates through four integrated business pillars: ThinkLogix provides procurement management, logistics consulting and IT solutions; GoLogix offers traditional third party logistics services ranging from express delivery through freight distribution, warehousing, clearing, forwarding and linehaul to mail management; DotLogix services the fulfilment requirements of b2b and b2c e-commerce and houses BizzNet, a dedicated SME Internet portal; and DirectLogix encompasses the PostNet counter network providing consumers with business communication tools including post, courier services and home deliveries.
