Wrap Text
Audited Condensed Financial Results for the year ended 31 May 2012
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG ISIN Code: ZAE 000026399
(“OneLogix” or “the company” or “the group”)
Audited Condensed Financial Results
for the year ended 31 May 2012
Highlights
– Revenue up 28%
– Operating profit up 26% and up 18% excluding profit on sale of assets
– HEPS up 16%
– NTAV per share up 24%
– Cash generated by operations up 46%
– Cash resources per share up 114% to 45,4 cents
– Total distribution for the year of 9 cents per share
Condensed Consolidated Statement of Comprehensive Income
Audited Audited
Year Year
ended ended
31 May 31 May
2012 2011
% R’000 R’000
Revenue 28 895 302 701 710
Operating and administration costs 29 (757 857) (588 669)
Depreciation and amortisation 14 (44 178) (38 911)
Operating profit 26 93 267 74 130
Finance income 9 2 755 2 519
Finance costs 65 (11 502) (6 958)
Profit before taxation 21 84 520 69 691
Taxation 26 (24 664) (19 502)
Profit for the year 19 59 856 50 189
Other comprehensive income
Revaluation of land and building – 1 300
Movement in foreign currency translation reserve 165 (38)
Income tax relating to components of other
comprehensive income – (182)
Deferred tax increase due to CGT inclusion rate
increase (760) –
Total comprehensive income for the year 16 59 261 51 269
Profit attributable to:
– Non-controlling interest (47) 6 127 11 492
– Equity holders of the company 39 53 729 38 697
19 59 856 50 189
Other comprehensive income attributable to:
– Non-controlling interest – 227
– Equity holders of the company (595) 853
(595) 1 080
Total comprehensive income attributable to:
– Non-controlling interest (48) 6 127 11 719
– Equity holders of the company 34 53 134 39 550
16 59 261 51 269
Number of shares in issue (‘000):
– Total issued less treasury shares 225 658 202 131
– Weighted 219 355 203 789
– Diluted 223 715 203 789
Basic and headline earnings per share (cents)
Basic earnings per share (cents) 29 24,5 19,0
Diluted basic earnings per share (cents) 26 24,0 19,0
Headline earnings per share (cents) 16 22,1 19,0
Diluted headline earnings per share (cents) 14 21,7 19,0
Reconciliation between basic and headline earnings
Basic earnings 39 53 729 38 697
(Profit)/loss on disposal of property, plant and
equipment less taxation and non-controlling
interests (5 159) 1
Headline earnings 26 48 570 38 698
Condensed Consolidated Statement of Cash Flows
Audited Audited
Year Year
ended ended
31 May 31 May
2012 2011
R’000 R’000
Net cash generated from operations 46 119 074 81 727
Net cash flows from investing activities (1) (91 683) (93 045)
Net cash flows from financing activities (629) 32 199 (6 087)
Net increase/(decrease) in cash resources 59 590 (17 405)
Cash resources at beginning of the year 42 791 60 233
Exchange gain/(loss) on cash resources 113 (37)
Cash resources at end of the year 140 102 494 42 791
The group has authorised capital expenditure over
the next year of R82,5 million. R38,0 million is
already committed.
Commitments
Operating lease commitments (not exceeding five
years) 26 060 16 097
Condensed Consolidated Statement of Financial Position
Audited Audited
At At
31 May 31 May
2012 2011
% R’000 R’000
ASSETS
Non-current assets 368 190 314 502
Property, plant and equipment 327 555 274 241
Intangible assets 31 982 32 498
Loans and receivables 6 498 6 271
Deferred taxation 2 155 1 492
Current assets 238 406 161 443
Inventories 14 759 12 157
Trade and other receivables 119 210 105 460
Taxation 1 943 1 035
Cash resources 102 494 42 791
Total assets 606 596 475 945
EQUITY AND LIABILITIES
Equity 270 390 230 272
Ordinary shareholders’ funds 264 498 200 226
Non-controlling Interests 5 892 30 046
Non-current liabilities 149 277 106 498
Interest-bearing borrowings 122 431 81 286
Deferred tax 26 846 21 080
Share-based compensation liability – 4 132
Current liabilities 186 929 139 175
Trade and other payables 136 211 95 595
Interest-bearing borrowings 50 017 41 554
Taxation 701 2 026
Total liabilities 336 206 245 673
Total equity and liabilities 606 596 475 945
Net asset value per share (cents) 18 117,2 99,1
Net tangible asset value per share (cents) 24 103,0 83,0
Cash resources per share (cents) 114 45,4 21,2
Audited Audited
Year Year
ended ended
31 May 31 May
2012 2011
R’000 R’000
SEGMENTAL ANALYSIS
Revenue
Specialised transport 31 768 424 587 088
Retail (4) 28 648 29 908
Reportable segments 797 072 616 996
Other 16 98 230 84 714
28 895 302 701 710
Segment results
Specialised transport 32 93 422 70 900
Retail 0 10 788 10 776
Reportable segments 104 210 81 676
Other (18) 7 985 9 692
Corporate items 10 (18 928) (17 238)
26 93 267 74 130
Unallocated:
Finance income 9 2 755 2 519
Finance costs 65 (11 502) (6 958)
21 84 520 69 691
Audited Audited
At At
31 May 31 May
2012 2011
R’000 R’000
Total assets
Specialised transport 18 480 134 408 313
Retail 18 16 723 14 158
Reportable segments 496 857 422 471
Other 13 39 202 34 733
Corporate items 310 66 439 16 214
Unallocated: Taxation and deferred taxation 4 098 2 527
27 606 596 475 945
Total liabilities
Specialised transport 44 261 993 181 555
Retail 19 8 712 7 292
Reportable segments 270 705 188 847
Other 25 25 575 20 443
Corporate items (7) 12 379 13 277
Unallocated: Taxation and deferred taxation 19 27 547 23 106
37 336 206 245 673
Condensed Consolidated Statement of Changes in Equity
Share Share Treasury
capital premium shares
R’000 R’000 R’000
At 1 June 2010 – audited 2 101 41 096 –
Dividends declared to non-controlling interests – – –
Capital distributions – (14 149) –
Specific share repurchase (80) (6 720) –
Treasury shares purchased – – (264)
Comprehensive income – – –
At 31 May 2011 – audited 2 021 20 227 (264)
Dividends declared to non-controlling interests – – –
Capital distributions and dividends to shareholders – (15 526) –
Non-controlling interest acquired – – –
Conversion of shareholding in BEE consortium 297 41 859 (8 431)
Share issue expenses – (444) –
Share-based compensation reserve movement – – –
General share repurchase (2) (319) –
Treasury shares disposed – – 264
Comprehensive income – – –
At 31 May 2012 – audited 2 316 45 797 (8 431)
Retained Revaluation Other
income reserve reserves
R’000 R’000 R’000
At 1 June 2010 – audited 128 456 10 184 52
Dividends declared to non-controlling interests – – –
Capital distributions – – –
Specific share repurchase – – –
Treasury shares purchased – – –
Comprehensive income 38 697 883 –
At 31 May 2011 – audited 167 153 11 067 52
Dividends declared to non-controlling interests – – –
Capital distributions and dividends to shareholders (4 169) – –
Non-controlling interest acquired – – –
Conversion of shareholding in BEE consortium – 2 951 –
Share issue expenses – – –
Share-based compensation reserve movement – – –
General share repurchase – – –
Treasury shares disposed – – 101
Comprehensive income 53 729 (760) –
At 31 May 2012 – audited 216 713 13 258 153
Share- Trans-
based Foreign actions
compen- currency with non-
sation translation controlling
reserve reserve interests
R’000 R’000 R’000
At 1 June 2010 – audited – – –
Dividends declared to non-controlling interests – – –
Capital distributions – – –
Specific share repurchase – – –
Treasury shares purchased – – –
Comprehensive income – (30) –
At 31 May 2011 – audited – (30) –
Dividends declared to non-controlling interests – – –
Capital distributions and dividends to shareholders – – –
Non-controlling interest acquired – – (1 501)
Conversion of shareholding in BEE consortium 4 395 (8) (9 643)
Share issue expenses – – –
Share-based compensation reserve movement 1 314 – –
General share repurchase – – –
Treasury shares disposed – – –
Comprehensive income – 165 –
At 31 May 2012 – audited 5 709 127 (11 144)
Non-
controlling
interests Total
R’000 R’000
At 1 June 2010 – audited 19 427 201 316
Dividends declared to non-controlling interests (1 100) (1 100)
Capital distributions – (14 149)
Specific share repurchase – (6 800)
Treasury shares purchased – (264)
Comprehensive income 11 719 51 269
At 31 May 2011 – audited 30 046 230 272
Dividends declared to non-controlling interests (3 265) (3 265)
Capital distributions and dividends to shareholders – (19 695)
Non-controlling interest acquired 1 (1 500)
Conversion of shareholding in BEE consortium (27 017) 4 403
Share issue expenses – (444)
Share-based compensation reserve movement – 1 314
General share repurchase – (321)
Treasury shares disposed – 365
Comprehensive income 6 127 59 261
At 31 May 2012 – audited 5 892 270 390
Comments
The directors of OneLogix are pleased to present the condensed consolidated audited
annual financial results for the year ended 31 May 2012 (“the year”), reflecting
continued growth driven by the strength of our businesses and their management teams,
despite challenging and variable economic conditions.
Basis of presentation
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 2011.
The condensed consolidated audited annual financial statements have been extracted from
the consolidated annual financial statements which 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 as the AC 500 standards, the JSE Limited Listings Requirements and the
requirements of the Companies Act, 2008. Financial Director Geoff Glass CA(SA) was
responsible for preparing 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 27 August 2012, are
available for inspection at the registered offices of OneLogix.
Review of operations
In line with its resilient business model the group looks to acquire small
entrepreneurial businesses, offering them the benefit of a management platform, which
allows them to expand and realise their full potential. At the same time the group
continues to focus on expanding the existing businesses. For the second consecutive
year growth was entirely organic.
Vehicle Delivery Services (“VDS”), now a mature business, continued to perform well.
Careful management of costs and continued investment in optimal fleet and IT
infrastructure, facilities, and people contributed to the performance. The trend of
stronger revenue growth in the first half of the year was retained.
Commercial Vehicle Delivery Services (“CVDS”) encouragingly continued to grow by
broadening its customer base with a number of new contracts secured during the year.
RFB Logistics (‘RFB’) and OneLogix Projex exceeded expectations, capitalising on
expanded fleet and upgraded administrative processes. A broad customer base in the
abnormal and general freight markets, supported by recognised service excellence,
continues to stand the business in good stead. The results of these two operations are
reported together with VDS and CVDS in the Specialised transport reportable segment.
Atlas Panelbeaters (“Atlas”) continued to build on its reputation of good customer
service in a difficult market.
PostNet made good progress despite the loss of the annuity income-generating Fax2E-mail
service earlier in the year. PostNet remains a valuable contributor to the group with
strong reliable annuity income and high margins. The business continues to evaluate new
opportunities. The PostNet results are reported in the Retail reportable segment.
Magscene performed well despite margin squeeze from a weakening exchange rate. The
business continues to capture increasing market share.
Due to the growth in the group’s logistics and transport operations, the group
reassessed its reportable segments. The Automotive and Abnormal segment has been
renamed, Specialised transport, and includes the results of VDS, CVDS, RFB and OneLogix
Projex which are all operations specialising in logistics and transport. The
comparative information has been updated accordingly. The other reconciling item
includes the results of Magscene and Atlas as these operating segments do not meet the
quantitative thresholds for separate reporting.
Financial results
Group revenue grew organically by 28% from R701,7 million to R895,3 million for the
year.
Excluding the impact of higher fuel prices which were passed on to customers, revenue
increased 23% from the previous year to R864,0 million.
Operating profit increased 26% from R74,1 million to R93,3 million. Excluding profit on
sale of assets, operating profit increased by 18% to R87,3 million. Operating margins
(excluding profit on sale of assets and recovery of fuel price increases from the
customer base) were largely in line with the previous year at 10,1% (May 2011: 10,6%).
Strict cost control measures are in place to counter cost pressures on significant cost
items for the group.
Net finance costs increased by 98% from R4,4 million to R8,7 million, due to finance
costs previously capitalised relating to the development of the Cape Town vehicle
facility (completed June 2011) and the group’s increased property portfolio in Gauteng
and KwaZulu-Natal.
Notwithstanding difficult trading conditions it is encouraging that headline earnings
per share (“HEPS”) rose 16% from 19,0 cents to 22,1 cents.
Earnings per share (“EPS”) rose 29% from 19,0 cents to 24,5 cents, boosted by the
capital profit realised from the disposal of a group property in KwaZulu-Natal.
Diluted HEPS and EPS are lower than their respective undiluted measures due to the
dilutionary effect of the shares held by the employee BEE Trust as treasury shares.
A concerted effort in working capital management resulted in cash flow from operations
growing by 46% from R81,7 million to R119,1 million.
During the period the group invested R120,0 million in operational infrastructure as
follows: R76,9 million for fleet; R34,1 million for property developments; R5,7 million
for IT infrastructure; and R3,2 million for other assets. Net proceeds on disposal of
tangible assets raised R29,1 million. A further investment of R1,5 million in OneLogix
Projex increased the group’s shareholding from 70% to 80%.
New interest-bearing borrowings of R106,3 million were raised during the period, offset
against the repayment of interest-bearing borrowings of R56,7 million. Capital
distributions and dividends paid to shareholders during the period amounted to R19,7
million.
Cash resources at the reporting date of R102,5 million increased by 140% from R42,8
million.
Conversion of shareholding
As previously announced on 14 September 2011, in order to align the interests of
Izingwe Holdings (Pty) Limited (“Izingwe”) more directly with the interests of other
shareholders, the company exercised its right to trigger a conversion of shares held by
Izingwe and the OneLogix BEE Trust to listed shares in the group with effect from 8
September 2011. As a result Izingwe and the OneLogix BEE Trust now own 10,25% and
2,56%, respectively, of the group’s issued ordinary share capital. The OneLogix BEE
Trust holds shares on behalf of employees who will receive these shares unconditionally
upon vesting in November 2013.
Share repurchase
As announced on 30 November 2011, the company had entered into a share repurchase
programme during the prohibited period effective 1 December 2011. OneLogix was entitled
to purchase shares up to a maximum aggregate value of R10 million that could not be
repurchased at a price greater than the lower of R1,45 per share or 10% above the
volume weighted average trading price of the company’s shares over the five trading
days preceding any particular repurchase. 223 550 shares, totalling R321 249, were
subsequently repurchased.
Capital distribution No. 6
Shareholders are advised that a final distribution of 4,5 cents per share (May 2011:
4,0 cents per share) has been declared, by way of a capital reduction out of the share
premium account. This takes the total distribution for the year to 9,0 cents per share
(2011: 8,0 cents per share). The capital distribution will be paid from contributed tax
capital and as such does not constitute a dividend for taxation purposes.
The salient dates in respect of the distribution are as follows:
2012
Last day to trade cum distribution on Friday, 14 September
Shares will trade ex distribution from Monday, 17 September
Record date Friday, 21 September
Payment of distribution Tuesday, 25 September
Shareholders may not de-materialise or re-materialise their shares between Monday,
17 September 2012 and Friday, 21 September 2012, 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.
Post year-end events
The company invested in a 55% shareholding in Quasar Software Developments (Pty) Ltd
(trading as QSA) effective 1 June 2012 for R1,5 million. The majority of the purchase
price is attributable to goodwill and intangible assets. The final purchase price
allocation will be completed before 31 May 2013. By acquiring control of QSA, OneLogix
has ensured the sustainability of this transport specific accounting software, which is
integral to all four group companies in the Specialised transport sector. The company
will enhance the QSA software packages and seek to realise its full market potential.
Prospects
The group has a proven mix of businesses, each well positioned to take advantage of
growth opportunities in their respective market segments even given the difficult
trading conditions expected to prevail in the medium term. OneLogix also has a healthy
cash reserve available for appropriate earnings-enhancing acquisitions in line with the
business model.
People
We remain appreciative that our quality management and employees continue to perform at
the highest levels of excellence. We believe that the enabling culture within the group
facilitates this delivery by continually encouraging and empowering our people to fully
realise their potential.
We welcome Lesego Sennelo to the board and look forward to her valued contribution. She
was appointed as an independent non-executive director with effect from 25 July 2012
and as a member of the Audit & Risk and Social & Ethics Committees with effect from 20
August 2012. Debbie Hirschowitz resigned from the Audit & Risk Committee with effect
from 20 August 2012.
We further thank 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
27 August 2012
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*#, LJ Sennelo*#
*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 Adviser:
Java Capital
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