Wrap Text
OLG - OneLogix Group Limited - Audited condensed results for the year ended 31
May 2011
OneLogix Group Limited
(Registration number 1998/004519/06)
Share code: OLG ISIN: ZAE000026399
("OneLogix" or "the company" or "the group")
AUDITED CONDENSED RESULTS FOR THE YEAR ENDED 31 MAY 2011
HIGHLIGHTS
- Revenue up 41%
- Operating profit up 43%
- HEPS up 46%
- HEPS from continuing operations up 61%
- NAV up 14%
- NTAV up 18%
- Cash generated by continuing operations up 38%
- Interim capital distribution of 4 cents per share paid
- Final capital distribution of 4 cents per share
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
Year ended Year ended
31 May 2011 31 May 2010
% R`000 R`000
Continuing operations
Revenue 41 701 710 496 769
Operating and administration costs 43 (588 669) (411 256)
Depreciation and amortisation 15 (38 911) (33 699)
Operating profit 43 74 130 51 814
Finance income 259 2 519 701
Finance costs (29) (6 958) (9 798)
Profit before taxation 63 69 691 42 717
Taxation 58 (19 502) (12 366)
Profit from continuing operations 65 50 189 30 351
Profit from discontinued operations (100) - 12 272
Profit for the year 18 50 189 42 623
Other comprehensive income
Movement in foreign currency translation
reserve (38) -
Revaluation of properties 1 118 -
Total comprehensive income for the year 20 51 269 42 623
Profit attributable to:
- Non-controlling interest 11 492 7 912
- Equity holders of the company 38 697 34 711
18 50 189 42 623
Other comprehensive income attributable
to:
- Non-controlling interest 227 -
- Equity holders of the company 853 -
1 080 -
Total comprehensive income attributable
to:
- Non-controlling interest 11 719 7 912
- Equity holders of the company 39 550 34 711
20 51 269 42 623
Number of shares in issue (`000):
- Total 202 131 210 131
- Weighted 203 789 210 131
- Diluted 202 131 210 131
Basic and headline earnings per share:
Basic and diluted basic earnings per share
(cents) 15 19,0 16,5
Headline and diluted headline earnings per
share (cents) 46 19,0 13,0
Continuing operations:
Basic and diluted basic earnings per share
(cents) 61 19,0 11,8
Headline and diluted headline earnings per
share (cents) 61 19,0 11,8
Discontinuing operations:
Basic and diluted basic earnings per share
(cents) 0,0 4,7
Headline and diluted headline earnings per
share (cents) 0,0 1,2
Reconciliation between basic and headline
earnings:
Basic earnings 38 697 34 711
(Loss)/profit on disposal of property,
plant and equipment less taxation and non-
controlling interests 1 (29)
Profit on disposal of discontinued
operation less taxation and non-
controlling interests - (7 442)
Headline earnings 38 698 27 240
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
Audited Audited
Year ended Year ended
31 May 2011 31 May 2010
% R`000 R`000
Net cash generated from operations 81 727 65 518
Continuing operations 38 81 727 59 277
Discontinuing operations - 6 241
Net cash flows from investing activities
(93 045) (18 326)
Continuing operations 100 (93 045) (46 588)
Discontinuing operations - 28 262
Net cash flows from financing activities
(6 087) (14 358)
Continuing operations (59) (6 087) (14 715)
Discontinuing operations - 357
Net (decrease)/increase in cash resources
(153) (17 405) 32 834
Cash resources at beginning of the year 120 60 233 27 399
Exchange loss on cash resources (37) -
Cash resources at end of the year (29) 42 791 60 233
The group has authorised capital
expenditureover the next 12 months of
R66,1 million. R54,4 million is already
committed.
Commitments
Operating lease commitments(not exceeding
five years) 16 097 8 715
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Audited Audited
At At
31 May 2011 31 May 2010
% R`000 R`000
ASSETS
Non-current assets 314 502 258 119
Property, plant and equipment 274 241 217 682
Intangible assets 32 498 33 550
Loans and receivables 6 271 6 887
Deferred tax 1 492 -
Current assets 161 443 160 853
Inventories 12 157 9 525
Trade and other receivables 105 460 88 866
Taxation 1 035 2 229
Cash resources 42 791 60 233
Total assets 475 945 418 972
EQUITY AND LIABILITIES
Equity 230 272 201 316
Ordinary shareholders` funds 200 226 181 889
Non-controlling interests 30 046 19 427
Liabilities
Non-current liabilities 106 498 83 390
Interest-bearing borrowings 81 286 61 208
Deferred tax 21 080 20 196
Share-based compensation liability 4 132 1 986
Current liabilities 139 175 134 266
Trade and other payables 95 595 86 330
Interest-bearing borrowings 41 554 46 506
Taxation 2 026 1 430
Total equity and liabilities 475 945 418 972
Net asset value per share (cents) 99,1 86,6
Net tangible asset value per share (cents)
83,0 70,6
Cash resources per share (cents) 21,2 28,7
SEGMENTAL ANALYSIS
Revenue
Automotive and abnormal 46 643 634 441 041
Retail (2) 29 908 30 585
Media 12 28 168 25 143
41 701 710 496 769
Operating profit
Automotive and abnormal 49 77 575 51 980
Retail (9) 10 776 11 780
Media 2 239 3 017 129
Corporate 43 (17 238) (12 075)
43 74 130 51 814
Unallocated:
Finance income 259 2 519 701
Finance costs (29) (6 958) (9 798)
63 69 691 42 717
Total assets
Automotive and abnormal 24 433 991 350 639
Retail (16) 14 158 16 767
Media 9 9 055 8 336
Corporate (62) 16 214 43 230
13 473 418 418 972
Unallocated: Taxation and deferred
taxation 2 527 -
14 475 945 418 972
Total liabilities
Automotive and abnormal 20 193 554 161 051
Retail (4) 7 292 7 568
Media (27) 8 441 11 505
Corporate (17) 13 280 15 906
14 222 567 196 030
Unallocated:
Taxation and deferred taxation 7 23 106 21 626
13 245 673 217 656
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Treasury Retained Revaluation
capital premium shares income reserve
R`000 R`000 R`000 R`000 R`000
At 1 June 2009 -
audited 2 101 47 400 - 93 745 10 184
Dividends declared
in subsidiaries - - - - -
Capital distribution - (6 304) - - -
Non-controlling
interests purchased - - - - -
Non-controlling
interests disposed - - - - -
Comprehensive income - - - 34 711 -
At 31 May 2010 -
audited 2 101 41 096 - 128 456 10 184
Dividends declared
in subsidiaries - - - - -
Specific share
repurchase (80) (6 720) - - -
Capital distribution - (14 149) - - -
Treasury shares
acquired - - (264) - -
Comprehensive income - - - 38 697 883
At 31 May 2011 -
audited 2 021 20 227 (264) 167 153 11 067
Foreign
currency Non-
Other translation controlling
reserves reserve interests Total
R`000 R`000 R`000 R`000
At 1 June 2009 -
audited 52 - 14 728 168 210
Dividends declared
in subsidiaries - - (3 009) (3 009)
Capital distribution - - - (6 304)
Non-controlling
interests purchased - - (75) (75)
Non-controlling
interests disposed - - (129) (129)
Comprehensive income - - 7 912 42 623
At 31 May 2010 -
audited 52 - 19 427 201 316
Dividends declared
in subsidiaries - - (1 100) (1 100)
Specific share
repurchase - - - (6 800)
Capital distribution - - - (14 149)
Treasury shares
acquired - - - (264)
Comprehensive income - (30) 11 719 51 269
At 31 May 2011 -
audited 52 (30) 30 046 230 272
COMMENTS
The directors of OneLogix are pleased to present the condensed consolidated
audited annual financial results for the year ended 31 May 2011 ("the year").
The economy during the year offered a mixed bag of conditions. The results
reflect overall continued growth driven by the fundamental strength of the
businesses and their management teams which enable the group to capitalise on
economic improvement in certain sectors and overcome the still challenging
conditions in others.
Basis of preparation
The accounting policies and method of measurement and recognition applied in the
preparation of the condensed consolidated audited annual financial statements
are consistent with those applied in the audited annual financial statements for
the previous year ended 31 May 2010, apart from adjustments for changes
resulting from the new accounting policies adopted during the year, as noted
below.
The condensed consolidated audited annual financial statements have been
prepared in accordance with International Financial reporting Standards ("IFRS")
and are presented in terms of the disclosure requirements set out in
International Accounting Standards ("IAS") 34, as well AC 500 standards, the JSE
Limited Listings Requirements and the requirements of the Companies Act.
Financial Director Geoff Glass CA(SA) prepared the consolidated annual financial
statements.
The condensed consolidated annual financial statements have been audited by
PricewaterhouseCoopers Inc. and their unqualified audit opinion, along with the
consolidated annual financial statements which were approved on 23 August 2011,
are available for inspection at the registered offices of OneLogix.
Accounting policies
The group adopted the following new standards from 1 June 2010:
- IFRS 3: Business Combinations (Revised); and
- Consequential amendments to IAS 27: Consolidated and Separate Financial
Statements (Revised), IAS 28: Investments in Associates and IAS 31: Interests in
Joint Ventures.
These standards are effective prospectively to business combinations for which
the acquisition date is on or after the beginning of the first annual reporting
period beginning on or after 1 July 2009.
Review of operations
The OneLogix group has continued to demonstrate the resilience of its business
model in terms of which the spread of businesses and markets of operation act as
a successful risk hedge in any economic cycle. This can again be attributed to
our strong management teams that guide tested business models for servicing
various logistics markets in South and Southern Africa.
Vehicle Delivery Services ("VDS") performed well on the back of a recovery in
the local market, while the export market is also starting to show signs of a
recovery. It maintained its track record of exceptional customer service and
delivered significantly improved results, supported by overall market growth.
VDS continues to be the major driver of group revenue and profitability.
Commercial Vehicle Delivery Services ("CVDS") continues to capture market share
by expanding its customer base and maintaining its admirable track record of
delivery and performance, boding well for the future.
RFB Logistics ("RFB") performed ahead of expectations and continued to grow a
well-diversified customer base, notwithstanding the highly competitive general
freight and abnormal load environment.
OneLogix Projex is a newly established business that has proven successful in
its early stages. Already contributing to group earnings, it works closely with
RFB and specialises in the project logistics and abnormal transport market.
OneLogix Projex has an experienced management team that has quickly built a
substantial, sustainable customer base.
Atlas Panelbeaters ("Atlas") has completed a major review of its operation,
processes and systems and is now favourably positioned for future growth. It
performed well during the year.
PostNet suffered the effects of a sluggish retail market. Nonetheless its
sustained annuity income, derived from a network of 236 franchised stores,
continues to entrench its position as a defensive asset for OneLogix and a
leader in a resilient sub-sector - SMME`s.
Magscene maintained its recently established stability and is expected to return
steady growth going forward.
Discontinued operations
As previously announced, the outstanding sale conditions relating to the
disposal of certain of the group`s media interests to Media 24 Limited have been
fulfilled, and the deferred purchase payment of R5,5 million was received in
December 2010.
The statement of comprehensive income and the cash flow statement distinguish
discontinued operations from continuing operations.
Specific share repurchase
As previously announced, the specific share repurchase and subsequent
cancellation of 8 million shares, purchased from Jeremy Eaton and The Eaton
Family Trust at R0,85 per share, have been implemented (in accordance with the
Companies Act, 1973 and the JSE Limited Listings Requirements) with effect from
30 August 2010.
Financial results
Revenue from operations increased 41% on the back of a continued revival in the
automotive and abnormal load markets as well as the first - time contributions
from the newly acquired and established businesses (see `Review of operations`
above).
Operating profit, representing 10,6% (May 2010: 10,4%) of revenue, grew by 43%
from R51,8 million to R74,1 million. The increase is attributable to an improved
utilisation of infrastructure and greater activity during the year. A charge of
R2,1 million was incurred during the year relating to the BEE share trust. A
further charge of R0,3 million relating to the professional fees associated with
the specific share repurchase was also incurred during the year. The fleet is
currently fully operational and deployed across the group`s businesses. The
approved CAPEX budget for the upcoming year is R66,1 million, R33,1 million of
which will be used for replacement of assets and the balance for expansion.
Group properties were independently revalued upwards by R1,3 million.
Due to the comparatively lower lending rates as well as substantially increased
cash resources, net finance costs decreased by 51% from R9,1 million to R4,4
million. This further enhanced profit before taxation by 63% from R42,7 million
to R69,7 million.
Headline earnings per share ("HEPS") grew 46% from 13,0 cents to 19,0 cents.
HEPS from continuing operations was up 61% from 11,8 cents to 19,0 cents.
Increased revenue generation and strict working capital structures saw cash flow
from continuing operations increase 38% from R59,3 million to R81,7 million.
During the year the group invested R97,7 million in operational infrastructure
as follows: R62,2 million for fleet; R28,9 million for property developments;
R4,0 million for IT infrastructure; and R2,6 million for other assets. Net
proceeds on disposal of tangible assets raised R4,7 million. New interest-
bearing borrowings of R74,5 million were raised during the year, offset by
repayments of R59,4 million. Capital distributions No. 2 and No. 3, totalling
R14,1 million, were paid in the year. A further R6,8 million was invested in the
share repurchase transaction as detailed above (see `Specific share
repurchase`).
Cash resources at the reporting date decreased by 29% from R60,2 million to
R42,8 million, due to certain of the investing activities in new assets being
funded by available cash resources.
Capital Distribution No. 4
Shareholders are advised that a final distribution, by way of a capital
reduction out of the share premium account, of 4,0 cents per share (May 2010:
3,0 cents per share) has been declared. This takes the total distribution for
the year to 8,0 cents per share (2010: 6,0 cents per share).
The salient dates in respect of the capital distribution are as follows:
2011
Last day to trade cum distribution on Friday, 9 September
Shares will trade ex distribution from Monday, 12 September
Record date Friday, 16 September
Payment of distribution Monday, 19 September
Shareholders may not de-materialise or re-materialise their shares between
Monday, 12 September 2011 and Friday, 16 September 2011, both dates inclusive.
OneLogix will continue to assess the payment of interim and final distributions
in light of earnings, after providing for long-term growth and cash/debt
resources, the amount of reserves available using going concern assessment and
covenants of banking facilities providers.
Prospects
Based on the firm foothold of the group`s businesses in their respective
markets, the directors are optimistic of a solid performance in the year ahead,
dependent obviously on economic circumstances.
Prospects are supported by a substantial cash reserve, and OneLogix will
continue to assess appropriate earnings-enhancing acquisitions.
People
As previously reported, Tsakani Matshazi resigned as a non-executive director of
OneLogix (and all of the OneLogix subsidiaries of which she was a director) with
effect from 22 November 2010. Tsakani was appointed as a representative of the
company`s empowerment partner and shareholder, Izingwe Holdings (Pty) Limited.
We thank her for the valuable contribution over the years and wish her well in
her future endeavours.
Ashley Basil Ally has been appointed as a non-executive director of OneLogix in
Tsakani`s stead, with Debrah Ann Hirschowitz as his alternate.
We remain confident that our management teams and staff, undergoing continual
training and skills development, are well-equipped to deliver on strategic and
operational objectives.
We thank our management and employees for their efforts and tenacity which have
driven our success. We further extend our appreciation to our business partners,
customers, suppliers, business advisors and shareholders for their ongoing
invaluable support.
By order of the board
Ian Lourens CEO Geoff Glass Financial Director
23 August 2011
Directors:
SM Pityana (Chairman)*
AB Ally* (Alternate: DA Hirschowitz)
NJ Bester
AC Brooking*
GM Glass (FD)
AJ Grant*#
IK Lourens (CEO)
CV McCulloch (COO)
JG Modibane*#
*Non-executive
#Independent
Registered office:
46 Tulbagh Road, Pomona, Kempton Park
(Postnet Suite 10, Private Bag X27, Kempton Park, 1620)
Company Secretary:
Probity Business Services (Pty) Limited
Third Floor, The Mall Offices, 11 Cradock Avenue, Rosebank, 2196
Transfer secretaries:
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Designated advisor:
Java Capital
Date: 23/08/2011 11:16:01 Supplied by www.sharenet.co.za
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