AltX logistics group OneLogix continued to demonstrate its resilience delivering notable growth with revenue from continuing operations up 21% to R497 million and headline earnings per share (“HEPS”) up 27% to 13,0 cents for the year ended 31 May 2010. Recent acquisitions, included for the first time, performed ahead of expectations boosting revenue. The group ended the year on a strong balance sheet with cash resources up 120% from R27,4 million to R60,2 million.
EBITDA increased 32% from R64,8 million to R85,5 million with operating profit up 35% to R51,8 million. Net profit before taxation was up 66% to R42,7 million compared to R25,8 million in the previous year. HEPS from continuing operations increased 44% from 8,2 cents to 11,8 cents. A capital distribution of 3 cents was declared bringing the total maiden capital distribution for the year to 6 cents.
CEO Ian Lourens attributes the group’s solid performance in a tough market to the inherent strength of its businesses and management teams. “Demand in our niche markets continues to be solid and underlying companies guided by an experienced management team, have the flexibility to adapt to the market and thereby meet demands.”
He further points to the noteworthy contributions of new acquisitions, which offset a downturn in the vehicle delivery market. RFB Logistics, included for the full year for the first time, delivered beyond expectations. The company focuses on the niche abnormal load transport market throughout Southern Africa. Performance from Atlas Panelbeaters, included from January 2010, was also pleasing and better than expected. Lourens comments that these performances bode well for future growth for the group. In addition the acquisitions add horizontal integration with Vehicle Delivery Services (“VDS”) and Commercial Vehicle Delivery Services (“CVDS”).
Contributing the lion’s share of revenue and profit, VDS increased market share in a challenging market. Lourens says: “VDS is well positioned in its niche and strong management and business processes continue to underpin growth.” He continues: “This has enabled VDS to take advantage of industry consolidation to increase earnings and revenue during the year.”
CVDS expanded increasing its customer base within the commercial vehicle logistics market and boosting profits. Lourens attributes some of the business’ success to management’s high degree of flexibility and ability to adapt to the changing market circumstances.
Postnet continued its excellent performance, delivering consistent growth despite the unstable economy. Lourens points to its annuity income as a bedrock to growth and underlines the defensive nature of the business.
Prior to year-end the group sold media distribution operations Media Express and Press Support to Media24 bolstering cash reserves. “The performance of both companies within our group had reached a ceiling and as a media group Media24 offered the companies more potential,” says Lourens. “The move was a natural progression as the businesses flourished during our tenure but had reached a point in their growth cycle where a different environment would offer further opportunities. We feel we sold at the right time securing the highest price.”
With the contributions from RFP Logistics and Atlas Panelbeaters generally making up for lost revenue from Media Express and Press Support the disposals leave Onelogix in a cash flush position. Lourens says that this “war chest” will facilitate the group’s continued and vigorous pursuit of further acquisitions.
The share closed yesterday at 0,84 cents a share, putting the company on a current PE of 9,43.
Issued by: Envisage Communications
(011) 325 5944/
On behalf of: OneLogix Group Limited
Ian Lourens, CEO
(011) 396 9040/ 082 440 9683
Share code: OLG
Issue date: 24 August 2010