Wrap Text
Condensed consolidated audited annual financial statements for the year ended 31 May 2014
OneLogix Group Limited
Incorporated in the Republic of South Africa
(Registration number 1998/004519/06)
JSE share code: OLG
ISIN: ZAE000026399
("OneLogix" or "the company" or "the group")
Condensed consolidated audited annual financial statements for the year ended 31 May 2014
Highlights
- Revenue up 25%
- Trading profit up 33%
- Operating profit up 44%
- Heps up 24%
- Core HEPS up 30%
- Cash flows from operations up 37%
Condensed Consolidated Statement of Comprehensive Income
Audited Audited
year ended year ended
31 May 31 May
2014 2013
% R'000 R'000
Continuing operations
Revenue 25 1 303 940 1 040 301
Operating and administration costs 25 (1 118 276) (896 456)
Depreciation and amortisation 22 (62 345) (51 054)
Trading profit 33 123 319 92 791
Profit/(loss) on sale of assets >100 9 580 (255)
Operating profit 44 132 899 92 536
Share of profits from associate (13) 4 190 4 814
Finance income (33) 1 635 2 423
Finance costs 41 (21 840) (15 494)
Profit before taxation 39 116 884 84 279
Taxation 37 (30 428) (22 237)
Profit from continuing operations 39 86 456 62 042
Profit from discontinued operations - 8 762
Profit for the year 22 86 456 70 804
Other comprehensive income
Movement in foreign currency
translation reserve* (75) 41 161
Revaluation of owner occupied
properties >100 16 270 0
Total comprehensive income for the
period 45 102 767 70 965
*The component of other
comprehensive income may
subsequently be reclassified to profit
and loss during future reporting
periods.
Profit attributable to:
- Non-controlling interest 95 10 367 5 316
- Owners of the parent 16 76 089 65 488
22 86 456 70 804
Other comprehensive income
attributable to:
- Non-controlling interest - -
- Owners of the parent 16 311 161
16 311 161
Total comprehensive income
attributable to:
- Non-controlling interest 95 10 367 5 316
- Owners of the parent 41 92 400 65 649
45 102 767 70 965
Total comprehensive income
attributable to owners of the parent
arises from:
- Continuing operations 62 92 400 56 941
- Discontinued operations (100) - 8 708
41 92 400 65 649
Number of shares in issue ('000):
- Total issued less treasury shares 207 402 225 658
- Weighted 217 411 225 658
- Diluted 217 411 231 258
Basic and headline earnings per
share (cents)
Basic earnings per share (cents) 21 35,0 29,0
Continuing operations 39 35,0 25,1
Discontinued operations 0,0 3,9
Diluted basic earnings per share
(cents) 24 35,0 28,3
Continuing operations 43 35,0 24,5
Discontinued operations 0,0 3,8
Headline earnings per share (cents) 24 31,2 25,1
Continuing operations 25 31,2 25,0
Discontinued operations 0,0 0,1
Diluted headline earnings per share
(cents) 27 31,2 24,5
Continuing operations 28 31,2 24,4
Discontinued operations 0,0 0,1
Core headline earnings per share
(cents) 30 33,3 25,6
Continuing operations 31 33,3 25,5
Discontinued operations 0,0 0,1
Diluted core headline earnings per
share (cents) 33 33,3 25,0
Continuing operations 34 33,3 24,9
Discontinued operations 0,0 0,1
Calculation of headline earnings and
core headline earnings
Profit attributable to owners of the
parent 16 76 089 65 488
(Profit)/loss on disposal of property,
plant and equipment less taxation
and non-controlling interests (8 163) 22
Insurance proceeds less taxation
and non-controlling interests - (438)
Profit on disposal of discontinued
operation less taxation - (8 495)
Headline earnings 20 67 926 56 577
Amortisation of intangible assets
acquired as part of a business
combination less taxation and
non-controlling interests 4 443 1 209
Core headline earnings 25 72 369 57 786
Segmental split of amortisation of
intangible assets acquired in a
business combination less taxation
and non-controlling interests
Specialised logistics 73 1 810 1 048
Retail - -
Reportable segments 1 810 1 048
Other 161 161
Share in associate >100 2 472 -
>100 4 443 1 209
Condensed Consolidated Statement of Financial Position
Audited Audited
year ended year ended
31 May 31 May
2014 2013
% R'000 R'000
ASSETS
Non-current assets 665 288 555 335
Property, plant and equipment 532 672 446 418
Intangible assets 77 257 66 289
Investment in associate 38 125 33 935
Loans and receivables 15 033 7 219
Deferred taxation 2 201 1 474
Current assets 260 935 219 345
Inventories 10 376 10 090
Trade and other receivables 179 455 148 994
Taxation 781 5 512
Cash resources 70 323 54 749
Total assets 926 223 774 680
EQUITY AND LIABILITIES
Equity 371 577 309 456
Ordinary shareholders' funds 334 978 292 272
Non-controlling interests 36 599 17 184
Liabilities
Non-current liabilities 234 812 201 327
Interest-bearing borrowings 168 165 149 722
Deferred tax 66 647 51 605
Current liabilities 319 834 263 897
Trade and other payables 182 939 156 088
Interest-bearing borrowings 90 134 74 137
Vendor liability 9 000 9 000
Non-controlling interest put option - 16 206
Taxation 1 371 1 616
Bank overdrafts 36 390 6 850
Total equity and liabilities 926 223 774 680
Net asset value per share (cents) 25 161,5 129,5
Net tangible asset value per share
(cents) 24 124,3 100,1
SEGMENTAL ANALYSIS
Revenue
Specialised logistics 26 1 183 153 936 967
Retail 6 31 869 30 188
Reportable segments 26 1 215 022 967 155
Other 22 88 918 73 146
25 1 303 940 1 040 301
Segment trading profit
Specialised logistics 33 132 211 99 744
Retail 18 14 280 12 109
Reportable segments 31 146 491 111 853
Other 58 7 277 4 607
Corporate items 29 (30 449) (23 669)
33 123 319 92 791
Segment results
Specialised logistics 43 141 783 99 458
Retail 18 14 288 12 148
Reportable segments 40 156 071 111 606
Other 58 7 277 4 599
Corporate items 29 (30 449) (23 669)
44 132 899 92 536
Unallocated:
Share of profits from associate (13) 4 190 4 814
Finance income (33) 1 635 2 423
Finance costs 41 (21 840) (15 494)
39 116 884 84 279
Total assets
Specialised logistics 17 805 822 686 539
Retail (4) 25 291 26 261
Reportable segments 17 831 113 712 800
Other 48 25 362 17 146
Corporate items 651 28 641 3 813
Investment in associate 12 38 125 33 935
Unallocated: taxation and deferred
taxation (57) 2 982 6 986
20 926 223 774 680
Total liabilities
Specialised logistics 16 392 617 339 856
Retail 19 18 888 15 857
Reportable segments 16 411 505 355 713
Other 21 12 160 10 032
Corporate items 36 62 963 46 258
Unallocated: taxation and deferred
taxation 28 68 018 53 221
554 646 465 224
The group has authorised capital
expenditure of R255,9 million until
31 May 2015. R155,7 million is
already committed.
Commitments
Operating lease commitments (not
exceeding seven years) 71 964 67 840
Condensed Consolidated Statement of Cash Flows
Audited Audited
year ended year ended
31 May 31 May
2014 2013
% R'000 R'000
Net cash generated from operations 37 133 434 97 431
Continuing operations 133 434 97 489
Discontinued operations - (58)
Net cash flows from investing
activities (101) 1 265 (88 544)
Continuing operations 1 265 (88 482)
Discontinued operations - (62)
Net cash flows from financing
activities 134 (148 680) (63 592)
Continuing operations (148 680) (63 517)
Discontinued operations - (75)
Net movement in cash resources (13 981) (54 705)
Cash resources at beginning of the
year 47 899 102 494
Exchange gain/(loss) on cash
resources 15 110
Cash resources at end of the year (29) 33 933 47 899
Condensed Consolidated Statement of Changes in Equity
Share Share Treasury
capital premium shares
R'000 R'000 R'000
At 1 June 2012 - audited 2 316 45 797 (8 431)
Dividends declared to non-
controlling interests - - -
Capital distribution and dividend
paid to OneLogix shareholders - (10 422) -
Non-controlling interest acquired as
a result of a business combination - - -
Transactions with non-controlling
interests - - -
Share-based compensation reserve
movement - - -
Profit for the year - - -
Other comprehensive income - - -
At 31 May 2013 - audited 2 316 35 375 (8 431)
Dividends declared to non-
controlling interests - - -
Dividend paid to OneLogix
shareholders - - -
Non-controlling interest acquired as
a result of a business combination - - -
Share-based compensation reserve
movement - - -
Transactions with non-controlling
interests - - -
Treasury shares becoming
unrestricted on vesting to BEE share
scheme participants - - 7 802
Share-based payment scheme
completed - - -
Specific share repurchase - - -
Transfer to retained income on
disposal - - -
Profit for the year - - -
Other comprehensive income - - -
At 31 May 2014 - audited 2 316 35 375 (629)
Retained Revaluation Other
income reserve reserves
R'000 R'000 R'000
At 1 June 2012 - audited 216 713 13 258 153
Dividends declared to non-
controlling interests - - -
Capital distribution and dividend
paid to OneLogix shareholders (10 422) - -
Non-controlling interest acquired as
a result of a business combination - - -
Transactions with non-controlling
interests - - -
Share-based compensation reserve
movement - - -
Profit for the year 65 488 - -
Other comprehensive income - - -
At 31 May 2013 - audited 271 779 13 258 153
Dividends declared to non-
controlling interests - - -
Dividend paid to OneLogix
shareholders (11 580) - -
Non-controlling interest acquired as
a result of a business combination - - -
Share-based compensation reserve
movement - - -
Transactions with non-controlling
interests - - -
Treasury shares becoming
unrestricted on vesting to BEE share
scheme participants - - -
Share-based payment scheme
completed 8 075 - -
Specific share repurchase (60 168) - -
Transfer to retained income on
disposal 1 488 (1 488)
Profit for the year 76 089 - -
Other comprehensive income - 16 270 -
At 31 May 2014 - audited 285 683 28 040 153
Foreign Transactions
Share based currency with non-
compensation translation controlling
reserve reserve interests
R'000 R'000 R'000
At 1 June 2012 - audited 5 709 127 (11 144)
Dividends declared to non-
controlling interests - - -
Capital distribution and dividend
paid to OneLogix shareholders - - -
Non-controlling interest acquired as
a result of a business combination - - -
Transactions with non-controlling
interests - - (18 608)
Share-based compensation reserve
movement 1 577 - -
Profit for the year - - -
Other comprehensive income - 161 -
At 31 May 2013 - audited 7 286 288 (29 752)
Dividends declared to non-
controlling interests - - -
Dividend paid to OneLogix
shareholders - - -
Non-controlling interest acquired as
a result of a business combination - - -
Share-based compensation reserve
movement 789 - -
Transactions with non-controlling
interests - - 21 265
Treasury shares becoming
unrestricted on vesting to BEE share
scheme participants - - (7 802)
Share-based payment scheme
completed (8 075) - -
Specific share repurchase - - -
Transfer to retained income on
disposal
Profit for the year - - -
Other comprehensive income - 41 -
At 31 May 2014 - audited - 329 (16 289)
Non-
controlling
interests Total
R'000 R'000
At 1 June 2012 - audited 5 892 270 390
Dividends declared to non-
controlling interests (3 789) (3 789)
Capital distribution and dividend
paid to OneLogix shareholders - (20 844)
Non-controlling interest acquired as
a result of a business combination 7 363 7 363
Transactions with non-controlling
interests 2 402 (16 206)
Share-based compensation reserve
movement - 1 577
Profit for the year 5 316 70 804
Other comprehensive income - 161
At 31 May 2013 - audited 17 184 309 456
Dividends declared to non-
controlling interests (1 941) (1 941)
Dividend paid to OneLogix
shareholders - (11 580)
Non-controlling interest acquired as
a result of a business combination 8 359 8 359
Share-based compensation reserve
movement - 789
Transactions with non-controlling
interests 2 630 23 895
Treasury shares becoming
unrestricted on vesting to BEE share
scheme participants - -
Share-based payment scheme
completed - -
Specific share repurchase - (60 168)
Transfer to retained income on
disposal -
Profit for the year 10 367 86 456
Other comprehensive income - 16 311
At 31 May 2014 - audited 36 599 371 577
Commentary
OneLogix has continued to demonstrate an uninterrupted growth trajectory,
as evidenced in the results for the financial year ended May 2014 ("the year"),
despite still difficult trading conditions in many of its niche markets.
Review of operations
The group's existing businesses performed satisfactorily with continued solid
organic growth, including United Bulk (Pty) Ltd ("United Bulk") which was included
for the first time for a full year. The acquisition of Madison Freightlines SA
(Pty) Ltd ("Madison") and new start-up business, OneLogix Linehaul (Pty) Ltd
("OneLogix Linehaul"), also contributed to earnings during the year.
Specialised Logistics
OneLogix Vehicle Delivery Services ("VDS"), a mature business, remains the group's
largest income generator and has retained its market leadership position. Its
strong and motivated management team has mastered a complex business model and
continues to focus on business opportunities and improving operational efficiencies
within a difficult trading environment impacted by below inflation cost recoveries
from customers and slowing consumer demand. Mindful of future sustainability,
the company continues to invest in optimising its general facilities, people
and skills, fleet and IT infrastructure (see "Post year-end events").
OneLogix Commercial Vehicle Delivery Services ("CVDS") continued its record
of credible performance as an increasingly pre-eminent participant in its
market. With a long and enviable record of exceptional customer service,
it continues to gain market share.
OneLogix United Bulk traded well in its first full year within the group.
The business is well positioned in its market and the unfolding of a fleet
expansion programme is beginning to yield results. Targeting of closely
associated markets for expansion will facilitate even further market share growth.
OneLogix Projex ("Projex") is a significant player in the Durban harbour freight
logistics market and managed to trade well in challenging market circumstances.
The company has the capacity to project manage the movement of large shipments
of abnormal or general freight within tight deadlines.
Further, new acquisition Madison, will complement Projex by assisting in expanding
its foothold in the inland region. This new business has been successfully
integrated into the operational fabric of the group and traded well despite
the negative impact on performance due to the protracted labour disputes in
the platinum belt.
OneLogix Linehaul is the group's third new start-up since inception and is
75% owned by OneLogix. Established 1 November 2013, the company has proven
to be profitable from the outset. Specialising in the cross-border movement
of commodities and general freight, it has established a good reputation
with an increasing customer base which bodes well for the future.
Retail
PostNet, another of the group's mature businesses, continues to deliver
reliably high operating margins and regular annuity income. The process of
evaluating new opportunities for growth and diversification continues unabated.
Other - Logistics Services
The remaining businesses are involved in providing services to the logistics
industry. These businesses do not meet the recognition criteria of a separately
reportable segment and include:
Atlas Panelbeaters ("Atlas") exceeded expectations during the year by responding
well to previous remedial action. The business enjoys strong customer loyalty
which has facilitated productive service expansion into adjacent markets.
A larger and more suitable property has also been acquired which will be
developed in due course to accommodate future expansion.
DriveRisk (a 40%-owned associate) has for the first time contributed to
earnings for a full year. It has maintained its market leadership position
within the niche driver behaviour management market, despite increasing
competition. The results of DriveRisk have been equity accounted.
Corporate transactions
As announced on 25 September 2013, the group's BEE partner Izingwe Holdings
(Pty) Ltd expressed the desire to exit its 10,25% investment in OneLogix.
The company exercised its pre-emptive rights by repurchasing, cancelling
and delisting these shares, which transaction was unanimously approved by
shareholders in a general meeting on 12 December 2013 ("the Izingwe share
buy-back"). The purchase consideration of R60,8 million, being an amount
of 250 cents per share together with interest thereon at a rate of 8,5%
from 3 September 2013 until the purchase date, was paid out of available
cash resources and short-term revolving credit facilities.
On 1 October 2013 the group acquired a 51% stake in Madison for R10,3 million
in cash. Madison is a well established Gauteng-based business specialising
in the delivery of heavy and abnormal equipment, especially heavy load cranes.
The final purchase price allocation has resulted in the following assets and
liabilities being recognised: Property, plant and equipment R11,5 million;
intangible assets R3,6 million; trade and other receivables R4,7 million;
inventories R0,9 million; taxation receivable R0,5 million; borrowings
R1,1 million; trade and other payables of R1,3 million; deferred tax
liability of R4,2 million; and the balance to goodwill. A non-controlling
interest of R7,2 million was recognised at the acquisition date.
At year-end, 31 May 2014, OneLogix Projex acquired a 69.5% stake in
Durban-based import and export warehouse handling company, Andre Niemand
(Pty) Ltd ("Andre Niemand") for R5,7 million in cash. The net assets
acquired are included in these results and the business will start
contributing to the group's results in the 2015 financial year.
The preliminary purchase price has been allocated to: Property, plant
and equipment R1 million; intangible assets R4,9 million; trade and
other receivables R2,1 million; cash R0,5 million; borrowings R1 million;
trade and other payables of R2,1 million; deferred tax liability of
R1,2 million; and the balance to goodwill. A non-controlling interest
of R1,2 million was recognised at the acquisition date. The final
allocation will be completed before the interim results of the
next financial year.
It is intended to rebrand Andre Niemand as OneLogix Projex Cargo Solutions
and with its substantial storage, loading/offloading and railway siding
capabilities, the business is set to both enhance Projex's offering as
well as benefit group earnings by leveraging its blue-chip customer base.
The primary factor contributing to the goodwill recognised in these
acquisitions is their specialised service offerings in their respective
markets. This goodwill is not expected to be deductible for income tax
purposes. The non-controlling interest in these acquisitions was measured
using the proportionate share of the identifiable net assets.
Had the businesses been acquired effective from 1 June 2013, the effect
on the statement of comprehensive income would not have been significant.
Disposal to non-controlling interests
With effect from 1 October 2013 the group disposed of a 10% shareholding
in Projex to the Projex management team for R9 million through a financing
agreement. This transaction better aligns the interests of management and
shareholders.
Financial results
Revenue increased by 25% to R1,304 billion on the back of continued organic
growth, as well as the maiden contribution of United Bulk for a full financial
year. Newly acquired Madison and newly formed OneLogix Linehaul contributed to
revenue for the first time in the latter half of the year.
Trading margins were slightly improved at 9,5% (May 2013: 8,9%). This resulted
in trading profit increasing 33% to R123,3 million compared to the 25% growth
in revenue, which is reassuring as it reflects the group's successful initiatives
to manage internal inflation.
During the year OneLogix extended the estimated useful lives of a portion
of the fleet based on past experience of fleet replacement, resulting in a
once-off reduction in the depreciation charge of approximately R4,0 million.
Notwithstanding the once-off reduction, normalised trading margins would have
been at 9,1%.
As a consequence of identifying suitably sized and located facilities in
KwaZulu-Natal (see "Post year-end events"), the group disposed of two existing
properties in the greater Durban area in May 2014. The sale of the properties
realised R24,6 million in proceeds and resulted in a realised profit of
R9,2 million and a transfer of R1,5 million from the revaluation reserve
to retained income. This once-off profit on sale of property was the main
reason that group operating profit of R132,3 million exceeded trading profit
by R9,6 million.
Net finance costs increased by 55% from R13,1 million to R20,2 million, as
a result of the group's increased investment in fleet as well as the reduced
cash on hand due to the funding of the significant acquisitions in the prior
year and the Izingwe share buy-back in December 2013. Interest cover on
trading profit of six times (May 2013: 7,1 times) allows the group to access
further borrowings to fund growth.
Headline earnings per share ("HEPS") rose 24% from 25,1 cents to 31,2 cents.
Earnings per share ("EPS") grew 21% from 29 cents to 35 cents. The prior year's
earnings were boosted by the capital profit realised on the disposal of Magscene
(Pty) Ltd for R8,5 million, while the current year earnings were enhanced by the
after tax profit on sale of R7,5 million realised on the properties disposed of
in KwaZulu-Natal.
As previously stated, we aim to present stakeholders with the same information
that management utilises to evaluate the performance of the group's operations.
Accordingly we present core headline earnings, which are headline earnings (as
calculated based on SAICA Circular 2/2013) adjusted for the amortisation charge
of intangibles recognised on business combinations. Core HEPS increased by 30%
and diluted core HEPS increased 33% to 33,3 cents. A reconciliation between
headline earnings and core headline earnings is provided.
As a result of the cessation of trading restrictions on the employee BEE trust,
diluted HEPS and EPS are now equal to their respective undiluted measures.
Cash flows from operations increased 37% to R133,4 million due to the continued
demonstrated ability of the group to convert earnings into cash and continual
focus on working capital management. Dividend number 3, applicable to the 2013
financial year, totalling R11,6 million was paid during the first half of the
year under review and is included in operating cash flows.
During the year the group invested R137 million in operational infrastructure
as follows: R127 million in fleet (of which R88,3 million relates to expansion),
R4,0 million in IT-related assets, R4,9 million for other assets (mainly at
Atlas) and R1,1 million in property. Net proceeds of R33,3 million were
received on the disposal of tangible assets.
New interest-bearing borrowings of R136,4 million were raised during the year
to fund asset-based financing, offset by the repayment of interest-bearing
borrowings of R103,9 million. Net cash resources at the reporting date were
R33,8 million, of which R5,25 million was utilised subsequent to year-end to
settle the cash portion of the purchase price of the CVDS transaction in
June 2014 (see "Post year-end events") and the remainder is allocated to
fund the required investment in the facility to be procured and developed
in KwaZulu-Natal (see "Post year-end events")
During the year owner-occupied properties were revalued by independent
valuers in line with the group's accounting policy to revalue property on
a triennial basis. The fair values as determined resulted in an increase
in the carrying value of properties by R20 million, with an after tax
impact of R16,3 million recognised in other comprehensive income.
Post year-end events
As announced on 23 April 2014 and 30 May 2014, OneLogix concluded
three related party transactions which in terms of section 10.7 of the
JSE Listings Requirements were not subject to shareholder approval,
provided that an independent expert confirmed that the terms of the
transaction were fair vis-Ã -vis shareholders, which was duly confirmed.
The group acquired:
- Ian Lockett's 10% shareholding in, and claims against, Projex for a purchase
consideration of R7,5 million. The purchase price was settled by way of a cash
payment of R3,75 million and by the allotment and issue of 1 071 428 fully
paid-up OneLogix shares at an issue price of 350 cents per share for the balance.
OneLogix now owns 90% of Projex with Projex management holding the remaining 10%
interest (see "Disposal to non-controlling interests");
- the Denmar Trust's 25% shareholding in and claims against CVDS for a
purchase consideration of R14,25 million payable by way of a cash payment
of R5,25 million and, by the allotment and issue by OneLogix to the Denmar
Trust of 2 571 428 fully paid-up OneLogix shares, at an issue price of
350 cents per OneLogix share, in respect of the balance of R9 million.
OneLogix now owns 100% of CVDS; and
- a portion of Tanker Solutions (Pty) Ltd's shareholding (14%) in and claims
against United Bulk for a purchase consideration of R13 million, payable by
way of the allotment and issue of 3 714 285 fully paid-up OneLogix shares at
an issue price of 350 cents per share. OneLogix now owns 74% of United Bulk.
In all instances synergies between OneLogix and the companies concerned will be
maximised and management interests will be more closely aligned with those of
shareholders.
Further, on 25 June 2014 OneLogix announced the conclusion of an agreement
to purchase a large tract of land between Durban and Pietermaritzburg for a
purchase price of R69,2 million, to develop a major storage facility for VDS
which will be income generating. The land will also be used for additional
group-wide facilities including offices, workshops, fuel tanks, driver
accommodation and truck parking areas. This will ensure more efficient logistics
practices and generally provide a strategic competitive advantage to the
participating group companies.
The development of the property is expected to cost approximately R52,4 million
and be completed by mid-December 2014. Financing of R85 million has been raised
to this end, with the balance to be funded from existing cash resources and
short-term facilities.
Dividend
As a result of the extraordinary, although temporary, impact of the Izingwe
share buy-back on the group's cash reserves as well as funding requirements
for the growth of the group including the investment in infrastructure in
KwaZulu-Natal (see "Post year-end events"), the OneLogix board has concluded
not to pay a final dividend. A dividend declaration will be reassessed at the
half-year results for the next financial period.
Changes to the board
With effect from 20 May 2014 Ashley Ally resigned as an independent non-executive
director and has been replaced by his alternate Debrah Hirschowitz. Debrah,
an independent non-executive director, also replaces Andrew Brooking as a member
of the Audit and Risk Committee whose resignation as director is effective from
31 August 2014.
Prospects
Our strategy is to continue growing organically, notwithstanding increasingly
difficult trading conditions, and to seek new and appropriate acquisitions.
The prevailing industrial unrest in South Africa has to date impacted several
of the businesses within the group. Nonetheless, existing businesses still offer
specific opportunities within their respective markets. Prudent capital allocation
has been implemented in order to take advantage of these prospects. Attention is
also continually focused on refining business systems and processes.
We remain open to acquisition possibilities, which are in line with our model of
acquiring small entrepreneurial businesses and offering them the benefit of a
management platform that allows them to expand and realise their potential.
People
We go to great lengths to ensure that high-quality people are attracted and retained
by the group. Much energy is also spent on ensuring a healthy and enabling cultural
environment at work, all of which goes a long way in the realisation of the company's
strategy. We therefore remain highly appreciative of our quality management team and
staff, who continue to perform at the highest levels of excellence.
We further thank our business partners, customers, suppliers, business advisors and
shareholders for their ongoing invaluable support.
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 consolidated audited annual financial
statements for the previous year ended 31 May 2013.
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 as the SAICA Financial Reporting Guides
as issued by the Financial Accounting Practices Committee, the Financial
Pronouncements as issued by the Financial Reporting Standards Council,
the JSE Listings Requirements and the requirements of the Companies Act,
2008. These results have been compiled under the supervision of the Financial
Director, GM Glass CA(SA). The condensed consolidated annual financial results
have been derived from the group's 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 25 August 2014,
are available for inspection at the registered offices of OneLogix.
The audited condensed consolidated annual financial statements are available
on the company's website www.onelogix.com.
By order of the board
Ian Lourens
CEO
Geoff Glass
Financial Director
26 August 2014
Directors
SM Pityana (Chairman)*#,
NJ Bester,
AC Brooking*,
GM Glass (FD),
AJ Grant*#,
DA Hirschowitz *#,
IK Lourens (CEO),
CV McCulloch (COO),
LJ Sennelo*#
* Non-executive # Independent
Registered office
46 Tulbagh Road,
Pomona, Kempton Park
(Postnet Suite 10,
Private Bag X27,
Kempton Park, 1620)
Company secretary
CIS Company Secretaries (Pty) Ltd,
70 Marshall Street,
Johannesburg, 2001
(PO Box 61763,
Marshalltown, 2107)
Transfer secretaries
Computershare Investor Services (Pty) Ltd,
Ground Floor,70 Marshall Street,
Johannesburg, 2001
(PO Box 61051,
Marshalltown, 2107)
Sponsor: Java Capital
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