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OLG - OneLogix - Unaudited Interim Results: Six Months Ended 30 November 2006
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG ISIN Code: ZAE000026399
("OneLogix" or "the group")
HIGHLIGHTS
* OPERATING PROFIT UP 61%
* REVENUE UP 59%
* NET PROFIT UP 32%
* HEPS UP 35%
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2006
("the interim period")
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Six Six Year
months months
ended ended ended
30 30 31 May
November November
2006 2005 2006
% R`000 R`000 R`000
Revenue 59 127 734 80 356 167 890
Operating and administration 106 242 67 736 142 525
costs
Depreciation and amortisation 113 4 880 2 286 5 360
Operating profit 61 16 612 10 334 20 005
Finance income (110) (55) (240)
Finance costs 2 011 897 2 027
Profit before taxation 55 14 711 9 492 18 218
Taxation 164 4 324 1 635 2 377
Net profit 32 10 387 7 857 15 841
Attributable to:
- Minority interest 264 338 460
- Equity holders of the group 35 10 123 7 519 15 381
Net profit 32 10 387 7 857 15 841
Number of shares in issue
(`000):
- Total 197 273 197 273 197 273
- Weighted 197 273 197 273 197 273
- Diluted 197 273 197 273 197 273
Basic and headline earnings
per share (cents)
- Basic and fully diluted 35 5,1 3,8 7,8
SEGMENTAL ANALYSIS
Revenue
Logistics 64 116 737 71 272 149 923
Services 21 10 997 9 084 17 967
127 734 80 356 167 890
Operating profit
Logistics 59 17 703 11 119 21 480
Services 13 2 642 2 332 4 448
Corporate 20 (3 733) (3 117) (5 923)
16 612 10 334 20 005
Commitments
Operating lease commitments
(not exceeding five years) 569 1 569 827
The group has authorised capital expenditure over the next twelve months of R50
million. R35 million is already committed.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six months Six Year
months
ended ended ended
30 30 31 May
November November
2006 2005 2006
R`000 R`000 R`000
Net cash generated from operations 10 295 9 635 21 107
Net cash flows from investing (34 301) (10 373) (38 350)
activities
Net cash flows from financing 24 578 5 497 17 548
activities
Net increase in cash resources 572 4 759 305
Cash resources at beginning of the 6 375 6 070 6 070
period
Cash resources at end of the 6 947 10 829 6 375
period
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
At At At
30 30 31 May
November November
2006 2005 2006
R`000 R`000 R`000
ASSETS
Non-current assets 113 502 58 727 84 113
Property, plant and equipment 92 657 37 908 63 661
Intangible assets 19 786 20 108 19 919
Loans and receivables 1 059 711 533
Current assets 46 837 38 552 33 440
Inventories 2 397 1 864 2 310
Trade and other receivables 37 493 25 859 24 755
Cash resources 6 947 10 829 6 375
Total assets 160 339 97 279 117 553
EQUITY AND LIABILITIES
Equity 71 070 52 899 60 883
Ordinary shareholders` funds 70 347 52 362 60 224
Minority interests 723 537 659
Liabilities
Non-current liabilities 48 752 19 937 28 648
Interest-bearing borrowings 43 072 14 936 24 381
Deferred tax 5 680 5 001 4 267
Current liabilities 40 517 24 443 28 022
Trade and other payables 22 897 18 359 17 287
Interest-bearing borrowings 14 839 6 069 8 765
Taxation 2 781 15 1 970
Total equity and liabilities 160 339 97 279 117 553
Net asset value per share (cents) 35,7 26,6 30,5
Net tangible asset value per share 25,6 16,9 20,4
(cents)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retained Minority
capital premium income interests Total
At 1 June 2005 1 973 32 619 10 386 199 45 177
Shares issue expenses - (135) - - (135)
Net profit - - 7 519 338 7 857
At 30 November 2005 - 1 973 32 484 17 905 537 52 899
unaudited
Net profit - - 7 862 122 7 984
At 31 May 2006 1 973 32 484 25 767 659 60 883
Dividend declared - - - (200) (200)
Net profit - - 10 123 264 10 387
At 30 November 2006 1 973 32 484 35 890 723 71 070
COMMENTS
The directors of OneLogix are pleased to present the unaudited results for the
interim period.
Basis of preparation
The group adopted International Financial Reporting Standards ("IFRS") for the
previous financial year ended 31 May 2006 ("the previous year") and IFRS has
accordingly been consistently applied for the interim period.
These results have not been audited or reviewed by the company`s auditors.
Review of operations
The group`s businesses continue to perform well across the board:
Vehicle Delivery Services ("VDS") remained the group`s stellar performer, as
reflected in the tangible return on continued investment in fleet expansion,
facilities and IT software and systems. High levels of efficiency within the
business support this investment and continue to drive ongoing growth. VDS
continues to dominate the buoyant cross-border auto-logistics market and is
making encouraging progress as an operator in the local market.
PostNet, a franchised chain of 215 business service outlets which serve the
high-
growth SMME market, continued to capitalise on an intensive brand re-engineering
process to deliver another good performance.
Media Express ("ME") made marked progress in expanding its customer base within
the price sensitive niche of express printed media delivery and continued to
successfully move into aligned niche markets. The leveraging of inhouse
capabilities that resulted in a collaboration between ME and PostNet, has begun
to show the benefits of promising synergies.
4Logix and Gijima delivered a solid performance. The business offers logistics
solutions for the rail of bulk commodities to ports throughout South Africa.
Skilled management and long-term contracts maintain growth in a market that is
traditionally characterised by relatively high revenue and low margins.
Financial results
Revenue for the group increased by 59% to R128 million from R80 million.
Operating profit grew by 61% to R16,6 million, representing approximately 13% of
revenue. Headline earnings per share ("HEPS") rose by 35% from 3,8 cents per
share to 5,1 cents per share.
The increase in revenue can be largely attributed to the higher revenue
generated by VDS on the back of a buoyant local market. Notwithstanding the
growth in revenue, the debtors days have improved in comparison to the prior
period.
The taxation charge of R4,3 million (2005: R1,6 million) has normalised to
approximately 29% (2005: 17%) of net profit before tax. The current financial
year`s tax rate is also expected to be approximately 29% (2005: 13%).
Despite the increased working capital requirements commensurate with growth in
revenue, cash generated from operations increased from R9,6 million to R10,3
million.
The group invested a total of R33,8 million in infrastructure. Approximately R6
million relates to vehicle storage facilities with the balance of R27,8 million
allocated to expansion of the VDS fleet. Infrastructure spend was financed by
cash generated from operations and a R24,8 million increase in interest-bearing
borrowings.
Property, plant and equipment includes the land and buildings, mainly situated
in Pomona, Kempton Park at a cost of R19,7 million and also in Pinetown, Durban
at a cost of R4,7 million. These properties were financed at favourable fixed
rates over a 10 year period and represent R12,1 million of the group`s interest-
bearing borrowings at the end of the interim period. These properties are
accounted for at cost and the improvements are amortised over 10-20 years.
BEE dilution
The historical accumulated loss which resides in the group`s main operating
subsidiary, OneLogix (Pty) Limited, has been almost completely reversed. Once
the loss has been reversed in full the group will be required to account in the
second half of the current financial year for the future attributable profits
that accord to our BEE partners. Had the group been required to account for this
dilution in the interim period, there would have been a reduction in
attributable earnings of approximately 15%.
Prospects
The outlook for the full financial year to May 2007 is positive. VDS has secured
two major local market contracts, both of which will become operational in April
2007. When combined with strong growth prospects in the remaining businesses,
the directors anticipate growth in HEPS for the year to 31 May 2007 despite the
dilution of earnings resulting from the BEE transaction (see BEE dilution
above).
The directors believe that a major driver of growth will be organic growth,
which will be sustainable over the medium to long term as a result of each
company`s strong management team and business processes developed over recent
years. These factors will entrench the companies` ability to take advantage of
their positioning within high growth niche markets. In addition, OneLogix will
continue to explore appropriate acquisitive opportunities that complement its
niche, cash-generative businesses.
People
OneLogix`s culture of quality service is carried through to its people.
Motivated, high calibre people are prioritised, which we believe will ensure
that the company has strong leadership with the necessary skills to guide the
group`s continued growth.
We wish to thank all management, employees, business partners, customers,
suppliers, business advisors and shareholders for their continued support.
By order of the board
Ian Lourens (CEO) CV McCulloch (Financial Director)
7 February 2007
Directors: SM Pityana (Chairman)*, NJ Bester, AC Brooking*, AJ Grant*#, IK
Lourens (CEO), T Matshazi*, CV McCulloch (Financial Director), JG Modibane*#
* Non-executive director # Independent director
Company Secretary: Probity Business Services (Proprietary) Limited, Third Floor,
JHI House, 11 Cradock Avenue, Rosebank, 2196
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: 07/02/2007 09:00:01 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
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