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OneLogix Group - Audited Results For The Year Ended 31 May 2005
Onelogix Group Limited
(Registration number 1998/004519/06)
Share code: OLG
ISIN: ZAE000026399
("OneLogix Group" or "the Company")
AUDITED RESULTS FOR THE YEAR ENDED 31 MAY 2005
REVENUE UP 46%
EBITDA UP 15%
HEPS UP 63%
TANGIBLE NAV PER SHARE UP 182%
INTRODUCTION OF BEE PARTNER
Condensed Consolidated Income Statement
Audited Audited
12 months ended 12 months ended
31 May 2005 31 May 2004
R"000 R"000
Revenue 106 142 72 884
Earnings before interest, taxation,
depreciation and amortisation (EBITDA) 21 800 18 932
Depreciation 4 785 3 945
Operating profit 17 015 14 987
Amortisation of goodwill - 3 114
Net interest paid 938 648
Profit before taxation 16 077 11 225
Taxation 2 450 3 561
Share of associate loss 156 -
Profit from continuing operations 13 471 7 664
Profit from discontinuing operations - (516)
Net profit 13 471 8 180
Minority interests 326 -
Net profit attributable to shareholders 13 145 8 180
Number of shares ("000):
- Total in issue 192 780 192 113
- Weighted 196 940 276 484
Headline earnings per share
from continuing
operations (cents)
- Basic 6,7 3,9
Headline earnings per share (cents)
- Basic 6,7 4,1
Earnings per share from
continuing operations (cents)
- Basic 6,7 2,8
Earnings per share (cents)
- Basic 6,7 3,0
Calculation of headline earnings
Net profit attributable to shareholders 13 145 8 180
Adjusted for:
Amortisation of goodwill - 3 114
Headline earnings 13 145 11 294
Profit from discontinuing operations - (516)
Headline earnings from
continuing operations 13 145 10 778
SEGMENTAL REPORTING
Revenue
Continuing operations
Logistics 90 629 58 016
Services 15 513 14 868
106 142 72 884
EBITDA
Continuing operations
Logistics 20 834 18 239
Services 4 719 3 974
Corporate (3 753) (3 281)
21 800 18 932
Commitments
Operating lease commitments
- not exceeding five years 1 914 3 740
Condensed Consolidated Balance Sheet
Audited Audited
At At
31 May 2005 31 May 2004
R"000 R"000
ASSETS
Non-current assets 43 880 32 556
Property, plant and equipment 24 705 13 008
Intangible assets 19 175 18 976
Deferred tax - 572
Current assets 27 180 16 986
Inventories 1 875 719
Trade and other receivables 19 235 9 384
Cash resources 6 070 6 883
Total assets 71 060 49 542
EQUITY AND LIABILITIES
Equity
Ordinary shareholders" funds 40 448 26 503
Minority interests 441 -
Liabilities
Non-current liabilities 12 183 4 648
Interest-bearing borrowings 10 708 4 648
Deferred tax 1 475 -
Current liabilities 17 988 18 391
Trade and other payables 13 161 11 570
Interest-bearing borrowings 4 578 4 150
Vendor liabilities - 2 500
Taxation 249 171
Total equity and liabilities 71 060 49 542
Net asset value per share (cents) 21,0 13,8
Net tangible asset value per share (cents) 11,0 3,9
Condensed Consolidated Cash Flow Statement
Audited Audited
12 months 12 months
ended ended
31 May 2005 31 May 2004
R"000 R"000
Net cash generated from operations 11 517 22 214
Net cash flows from investing activities (19 427) (8 122)
Net cash flows from financing activities 7 097 (11 790)
Net (decrease)/increase in cash resources (813) 2 302
Cash resources at beginning of year 6 883 4 581
Cash resources at end of year 6 070 6 883
Condensed Consolidated Statement of Changes in Equity
Audited Audited
12 months 12 months
ended ended
31 May 2005 31 May 2004
R"000 R"000
Opening equity 26 503 29 715
New shares issued and to be issued 800 -
Shares repurchased including costs - (11 392)
Net profit 13 145 8 180
Closing equity 40 448 26 503
Comments
INTRODUCTION
The directors of OneLogix are pleased to present the audited results for the
year ended 31 May 2005 ("the year"). The audited annual financial statements
("financial statements") have been audited by PricewaterhouseCoopers Inc. and
the audit opinion is available for inspection at OneLogix"s registered office.
The financial statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
used in the preparation of the financial statements are consistent with those
used in the financial statements for the year ended 31 May 2004 ("the previous
year"), save in respect of AC 140 in terms of which the amortisation of goodwill
ceased with effect from 1 April 2004.
The group achieved strong organic growth for the year, reflecting a significant
improvement over 2004. Strict cash flow management and a disciplined cost regime
maintained healthy profit margins within a framework of managed growth and
significant capital investment.
Review of Operations
Vehicle Delivery Services ("VDS") continued to perform well. During the year
substantial investment in infrastructure was made to expand its fleet and
enhance its vehicle tracking and IT systems. This enabled VDS to establish a
foothold locally while maintaining dominance of the cross-border auto logistics
market.
Media Express operates in a highly cost-conscious environment, which resulted in
a slight decrease in profit margins. The group is actively addressing this by
reviewing business process and exploring diversification into associated niche
markets.
PostNet"s ongoing review of its business proposition delivered strong operating
results. PostNet maintains dominance of the business service solutions niche
market and is continually exploring new product and service offerings through
its franchisee network.
4Logix is a relatively low-margin high-revenue business that offers logistics
solutions for the rail of bulk commodities to ports throughout South Africa.
With effect from 1 December 2004 the group increased its shareholding from 35%
to 51%. During the year 4Logix secured a number of lucrative long-term
contracts, which contributed to the group"s profitability.
Financial Results
Revenue for the group increased by 46% from R73 million to R106 million.
Earnings before interest, taxation, depreciation and amortisation ("EBITDA")
grew by 15% to R21,8 million representing approximately 21% of revenue.
Headline earnings per share ("HEPS") rose by 63% from 4,1 cents per share to 6,7
cents per share.
The increase in revenue can be attributed largely to the consolidation of 4Logix
with effect from 1 December 2004, as well as the higher revenue generated by VDS
following its successful entry into the local market. The additional revenue
impacted on receivables, which increased by 105%.
The taxation charge was reduced by a prior year"s deferred tax overprovision and
learnership allowances totalling R2,2 million.
Cash generated from operations decreased from R22,2 million to R11,5 million as
a result of increased working capital commensurate with growth in revenue,
coupled with the effect of winding down the discontinued operations" working
capital in 2004. Notwithstanding this, cash generated from operations
significantly underpinned headline earnings. The group settled its vendor
liability of R2,5 million during the year and invested a total of R16,5 million
in infrastructure, mainly for VDS. Infrastructure spend was financed by cash
generated from operations and a R6,5 million increase in interest-bearing
borrowings.
Black Economic Empowerment ("BEE")
In line with the intention to introduce a BEE partner as stated in the 2004
annual results announcement, the group is pleased to announce that a consortium
led by Sipho Pityana"s Izingwe Capital and including the historically
disadvantaged staff of OneLogix will aquire a stake of 25% in OneLogix
(Proprietary) Limited, the wholly-owned subsidiary responsible for directing the
group"s operations.
Full details of the transaction are set out in a separate announcement today.
Prospects
The group anticipates that its enhanced BEE platform together with the current
positive economic climate will drive organic growth in the year ahead.
OneLogix will also continue to explore acquisitive opportunities that complement
its niche high-margin cash-generative businesses.
People
As previously announced Craig Rutters resigned as Managing Director of Media
Express with effect from 31 January 2005. We thank him for his contribution to
the group and wish him well in his new endeavour. We welcome Geoff Milton as the
new Managing Director of Media Express. Geoff has 12 years" experience in the
courier industry and is well-equipped for his new role within OneLogix. We also
congratulate Dirk Holl, former General Manager of VDS, on his appointment to the
board of OneLogix (Proprietary) Limited with effect from 31 January 2005.
We are satisfied that OneLogix is developing a strong management team equipped
with appropriate skills to guide the group"s continued growth. OneLogix thanks
its management, employees and PostNet business partners as well as its
customers, suppliers, business advisors and shareholders 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 McCulloch (FD)
29 August 2005
Warning: The listing of the ordinary shares in the company is on the ALTX.
Shareholders are advised of the risks of investing in a company listed on the
ALTX. Shareholders are advised that the JSE does not guarantee the viability or
the success of a company listed on the ALTX. In terms of the JSE Listings
Requirements a designated advisor has to be retained by the company. The
designated advisor is required to, inter alia, attend all board meetings held by
the company to ensure that all JSE Listings Requirements and applicable
regulations are complied with, approve the financial director of the company and
guide the company in a competent, professional and impartial manner. If the
company fails to retain the designated advisor it must make arrangements to
appoint a new designated advisor within 10 business days, failing which the
company faces suspension of trading of its securities. If a designated advisor
is not appointed within 30 days of its suspension the company faces the
termination of its listing without an offer to minority shareholders.
Directors: A C Brooking (Chairman)*, I K Lourens (CEO), C V McCulloch (FD),
NJ Bester, A J Grant*#, J G Modibane*#
*Non-executive #Independent
Company secretary: Probity Business Services (Proprietary) Limited, Suite 204,
20 Baker Street, Rosebank (PO Box 85392, Emmarentia, 2029)
Registered office: 46 Tulbagh Road, Pomona, Kempton Park (PO Box 85392,
Emmarentia, 2029)
Transfer secretaries: Computershare Investor Services 2004 (Proprietary)
Limited, Ground Floor 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown 2107)
Date: 30/08/2005 07:07:13 AM Supplied by www.sharenet.co.za
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