Wrap Text
OLG - OneLogix - Unaudited Condensed Interim Results For The Six Months Ended
30 November 2008
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG
ISIN Code: ZAE000026399
("OneLogix" or "the group")
UNAUDITED CONDENSED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2008
HIGHLIGHTS
- REVENUE UP 31%
- OPERATING PROFIT UP 16%
- HEPS UP 15%
- CASH GENERATED FROM OPERATIONS UP 86%
- NTAV PER SHARE UP 45%
- NAV PER SHARE UP 26%
CONDENSED CONSOLIDATED
INCOME STATEMENT
Unaudited
Six months
ended
30 November
2008
% R`000
Revenue 31 326 917
Operating and administration costs 35 (274 841)
Earnings before interest,
taxation, depreciation and
amortisation (EBITDA) 13 52 076
Depreciation and amortisation 7 (13 687)
Operating profit 16 38 389
Finance income 90 349
Finance costs 29 (6 848)
Share of associate income 49 85
Profit before taxation 14 31 975
Taxation 7 (9 179)
Net profit 17 22 796
Attributable to:
- Minority interest 22 5 456
- Equity holders of the company 15 17 340
Net profit 17 22 796
Number of shares in issue (`000):
- Total 210 131
- Weighted 210 131
- Diluted 210 131
Basic and headline earnings
per share (cents)
- Basic and fully diluted 15 8,3
SEGMENTAL ANALYSIS
Revenue
Logistics 31 312 729
Services 27 14 188
326 917
Operating profit
Logistics 16 39 308
Services 10 4 193
Group 13 (5 112)
38 389
Commitments
Operating lease commitments
(not exceeding five years) 12 468
Unaudited Audited
Six months Year
ended ended
30 November 31 May
2007 2008
R`000 R`000
Revenue 249 013 512 531
Operating and administration costs (202 997) (424 830)
Earnings before interest,
taxation, depreciation and
amortisation (EBITDA) 46 016 87 701
Depreciation and amortisation (12 799) (25 288)
Operating profit 33 217 62 413
Finance income 184 450
Finance costs (5 297) (12 738)
Share of associate income 57 86
Profit before taxation 28 161 50 211
Taxation (8 611) (14 286)
Net profit 19 550 35 925
Attributable to:
- Minority interest 4 481 7 322
- Equity holders of the company 15 069 28 603
Net profit 19 550 35 925
Number of shares in issue (`000):
- Total 210 131 210 131
- Weighted 210 131 210 131
- Diluted 210 131 210 131
Basic and headline earnings
per share (cents)
- Basic and fully diluted 7,2 13,6
SEGMENTAL ANALYSIS
Revenue
Logistics 237 854 490 085
Services 11 159 22 446
249 013 512 531
Operating profit
Logistics 33 938 64 608
Services 3 820 7 165
Group (4 541) (9 360)
33 217 62 413
Commitments
Operating lease commitments
(not exceeding five years) 16 343 12 454
The group has authorised capital expenditure over the next six months of
R41,4 million. R5,2 million is already committed.
CONDENSED CONSOLIDATED
CASH FLOW STATEMENT
Unaudited
Six months
ended
30 November
2008
% R`000
Net cash generated from
operations 86 36 384
Net cash flows utilised in
investing activities (8) (38 240)
Net cash flows generated from
financing activities (4) 17 989
Net increase/(decrease)
in cash resources 16 133
Cash resources at beginning of period 9 001
Cash resources at end of period 25 134
Unaudited Audited
Six months Year
ended ended
30 November 31 May
2007 2008
R`000 R`000
Net cash generated from
operations 19 550 41 570
Net cash flows utilised in
investing activities (41 545) (73 239)
Net cash flows generated from
financing activities 18 772 22 400
Net increase/(decrease)
in cash resources (3 223) (9 269)
Cash resources at beginning of period 18 270 18 270
Cash resources at end of period 15 047 9 001
CONDENSED CONSOLIDATED
BALANCE SHEET
Unaudited Unaudited Audited
At At At
30 November 30 November 31 May
2008 2007 2008
R`000 R`000 R`000
ASSETS
Non-current assets 252 172 216 159 227 533
Property, plant and equipment 206 567 169 379 181 450
Intangible assets 44 732 46 331 45 457
Interest in associate 201 87 116
Loans and receivables 672 362 510
Current assets 117 917 98 514 92 616
Inventories 6 000 5 905 3 189
Trade and other receivables 86 783 77 562 80 426
Cash resources 25 134 15 047 9 001
Total assets 370 089 314 673 320 149
EQUITY AND LIABILITIES
Equity 166 631 129 001 145 452
Ordinary shareholders` funds 150 431 118 992 133 091
Minority interests 16 200 10 009 12 361
Liabilities
Non-current liabilities 92 626 87 116 80 686
Interest-bearing borrowings 79 804 78 406 71 128
Deferred tax 12 822 8 710 9 558
Current liabilities 110 832 98 556 94 011
Trade and other payables 71 276 58 026 61 685
Interest-bearing borrowings 38 785 26 442 29 473
Taxation 771 14 088 2 853
Total equity and liabilities 370 089 314 673 320 149
Net asset value per share (cents) 71,6 56,6 63,3
Net tangible asset value per share
(cents) 50,3 34,6 41,7
CONDENSED CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY
Revalu-
Share Share Retained ation
capital premium income reserve
R`000 R`000 R`000 R`000
At 1 June
2007 - audited 1 973 32 484 44 751 -
Shares issued 128 14 916 - -
Dividends declared
in subsidiaries - - - -
Minorities acquired
on acquisition of
subsidiary - - - -
Revaluation of
fixed properties - - - 9 619
Net profit - - 15 069 -
At 30 November
2007 - unaudited 2 101 47 400 59 820 9 619
Net profit - - 13 534 -
Adjustment to
revaluation - - - 565
At 31 May 2008
- audited 2 101 47 400 73 354 10 184
Dividends declared
in subsidiaries - - - -
Net profit - - 17 340 -
At 30 November
2008 - unaudited 2 101 47 400 90 694 10 184
Other Minority
reserves interests Total
R`000 R`000 R`000
At 1 June
2007 - audited 52 2 375 81 635
Shares issued - - 15 044
Dividends declared
in subsidiaries - (975) (975)
Minorities acquired
on acquisition of
subsidiary - 922 922
Revaluation of
fixed properties - 3 206 12 825
Net profit - 4 481 19 550
At 30 November
2007 - unaudited 52 10 009 129 001
Net profit - 2 841 16 375
Adjustment to
revaluation - (489) 76
At 31 May 2008
- audited 52 12 361 145 452
Dividends declared
in subsidiaries - (1 617) (1 617)
Net profit - 5 456 22 796
At 30 November
2008 - unaudited 52 16 200 166 631
COMMENTS
The directors of OneLogix are pleased to present the unaudited condensed
interim financial results for the six months ended 30 November 2008 ("the
interim period").
Basis of preparation
The accounting policies and method of measurement and recognition applied in
preparation of the unaudited condensed interim financial statements are
consistent with those applied in the audited annual financial statements for
the previous year ended May 2008.
The unaudited condensed interim financial statements have been prepared in
accordance with International Financial Reporting Standards (`IFRS`),
International Accounting Standard (IAS) 34 and the Companies Act (Act 61 of
1973), as amended.
These condensed interim financial results have not been audited or reviewed by
the company`s auditors.
Review of operations
The group`s businesses continued their positive growth trend and performed in
line with expectations during the interim period. The strategic entry into new
niche markets in the logistics sector successfully diversified operations.
Vehicle Delivery Services ("VDS") - recognised superior levels of service
continued to underpin performance as VDS further entrenched its position as a
major competitor in the vehicle logistics market. A strong position in the
cross-border vehicle logistics market was maintained, while market share in the
contracting local passenger market continued to grow aided by consolidation in
the sector. Ongoing investment in people and infrastructure has continued to
realise benefit for the company.
Commercial Vehicle Delivery Services ("CVDS") has proved a successful venture
for entry into the local commercial vehicle logistics market. Leveraging
existing group capability, the company performed ahead of expectations.
PostNet, a national franchised chain of 225 business service outlets for the
high growth SME market, sustained its record performance. The business
continued to demonstrate its resilience to market contraction, evident
throughout its 14 year history, and remains a defensive asset with healthy
growth potential in the OneLogix group.
Media Express continued to perform well and retained a substantial share in the
price sensitive niche market of express delivery service. The group continues
to investigate new opportunities within and associated with this market niche
as additional avenues for future growth. Integrated opportunities with PostNet
are yielding positive results.
Press Support and Magscene together distribute upwards of 30 million newspapers
and magazines per annum direct to the end user. Press Support will continue to
capitalise on opportunities in the airline industry, in which it has an
established footprint, and further its penetration of the leisure and hotel
industry. Magscene intends to increase its spread of titles and control over
distribution channels. Going forward, focus will further be on expanding market
share and improving operational efficiencies in order to optimise
profitability.
4Logix and Gijima are relatively high revenue, low margin businesses that offer
logistics solutions for the rail of bulk commodities to ports throughout South
Africa. A number of long-term contracts continued to drive a steady and
sustainable performance. There is currently a concentrated focus on expansion
into related bulk commodity markets.
Financial results
Solid trading performances resulted in continued growth for OneLogix in the
interim period.
Revenue increased by 31% to R327 million from R249 million for the comparative
interim period ended 30 November 2007 ("the comparative period"). Operating
profit grew by 16% from R33,2 million to R38,4 million, representing 11,7% of
revenue. Revenue grew disproportionately to operating profit due to significant
increases in the fuel price during the period. Net profit before tax was up 14%
to R32 million. This was negatively impacted by increased lending rates in the
interim period. Profit after tax increased 17% to R22,8 million, supported by
the decrease in the Corporate Income Tax rate from 29% to 28%. Headline
earnings per share ("HEPS") grew by 15% to 8,3 cents from 7,2 cents.
Notwithstanding increased working capital requirements commensurate with growth
in revenue, as well as payment of tax (see below), cash flow from operations
increased 86% from R19,6 million to R36,4 million. The group invested R40,3
million in infrastructure, of which R20,0 million relates to expansion of the
VDS fleet, R16,8 million to storage facilities, R2,6 million to IT
infrastructure and R0,9 million to other assets.
As previously announced all tax losses have been reversed and the company is
now in a tax-paying position. Accordingly taxes of R8,0 million were paid
during the interim period, compared to R1,9 million in the comparative period.
The group`s debtors days have improved despite growth in revenue and strict
working capital policies remain in place.
Prospects
Revenue is historically weighted to the first half of the financial year.
Adverse economic conditions globally and locally are expected to impact on the
group in the six months ahead to year-end, particularly as regards the
contracting automotive industry. However, this economic landscape is expected
to drive significant consolidation in the sectors in which the group operates.
The attractive acquisition opportunities expected to arise, which could enhance
the group`s current areas of focus and facilitate expansion into aligned niche
markets, should help to offset a potential slowing of organic growth.
The group`s focus on highly competitive offerings to growth niche markets
remains a key strength, which is well supported by established infrastructure
and experienced and motivated management.
People
We are satisfied that the strong management teams and staff, undergoing
continual training and skills development, are well equipped to deliver on
strategic and operational objectives.
We thank our management, employees, business partners, customers, suppliers,
business advisors and shareholders for their continued and invaluable support.
By order of the board
Ian Lourens (CEO) Geoff Glass (CFO)
17 February 2009
Directors: SM Pityana (Chairman)*, NJ Bester, AC Brooking*, GM Glass (CFO),
AJ Grant*#, IK Lourens (CEO), T Matshazi*, CV McCulloch (COO), JG Modibane*#
* Non-executive director # Independent director
Registered office: 46 Tulbagh Road, Pomona, Kempton Park (Postnet Suite 10,
Private Bag X27, Kempton Park, 1620)
Company Secretary: Probity Business Services (Proprietary) Limited,
Third Floor, JHI House, 11 Cradock Avenue, Rosebank, 2196
Transfer secretaries: Computershare Investor Services (Proprietary) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001 (P O Box 61051,
Marshalltown, 2107)
Designated advisor
Java Capital (Proprietary) Limited
Date: 17/02/2009 09:30:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
