OneLogix’s mix and spread of logistics businesses and strong management again reflected in a market leading performance for the year to May 2012 that saw all key markers up by double digits, in the case of revenue by 28% and headline earnings per share by 16%, solely off the back of organic growth. A number of group companies exceeded targets despite general margin squeeze from rising input costs and intense competition, with continued re-investment in operations and recognised service excellence proving the cornerstones of success across the board.
Operating profit grew 18% to R87 million off revenue of R895 million. CEO Ian Lourens explains that even taking into account increased fuel costs, revenue growth was substantial. “If you strip out the high fuel costs, which we pass onto customers, revenue growth year-on-year was 23%.” HEPS increased from 19 cents in the previous year to 22,1 cents.
Cash from operations leapt 51% to R123 million as a result of a management’s success in managing working capital. CAPEX amounted to R120 million, invested in fleet, property and infrastructure as well as an increased stake (now 80%) in Onelogix Projex. R57 million of debt was repaid and the group still ended the year cash flush with R102,5 million, a massive 240% increase on R43 million at the previous year-end.
In light of the ongoing strong performance OneLogix returned 9 cents a share to shareholders by way of a capital distribution, compared to 8 cents for FY2011.
The group’s auto logistics businesses continued to perform well in line with expectations. The younger Commercial Vehicle Delivery Services seized more market share with new customers and contracts secured during the year, while Vehicle Delivery Services (“VDS”) is now a mature operation. Lourens says VDS continued to post higher revenue in the first half of the year in line with the historical trend.
RFB Logistics and OneLogix Projex, in the freight and abnormal load market, both beat budgets for the year. Fleet upgrades, improved administration and unrivalled customer service were the advantages that helped grow both client bases in the highly competitive market.
Media and communications businesses PostNet and Magscene also fared positively. An importer and distributor of news titles, Magscene effectively overcame margin pressure from a weakening Rand.
Vertical integration is a key strategic objective for the group. Lourens says Atlas Panelbeaters, which attends to the group’s extensive fleet as well as third party customers, is one example of this. Post year-end OneLogix applied the same strategic rationale when it invested in a 55% stake in Quasar Software Developments for R1,5 million. “Through this investment we have ensured the sustainability of this transport specific accounting software which is integral to all five auto logistics group companies.” In addition OneLogix is well placed to exploit the programme’s as yet unrealised market potential for an additional revenue stream.
Looking ahead he says the economy is not expected to kick up substantially in the medium term and he does not foresee input costs reducing much. Nonetheless he is positive as OneLogix “needs simply to continue what we are doing – keeping our nose to the grindstone, our eye on costs and our ear to the ground for good acquisition opportunities which are in line with our proven business model of purchasing entrepreneurial business with considerable growth potential.” The group’s tidy cash reserve should prove a buffer to challenging trade conditions as well as a driver for acquisitive growth.
The share closed Friday at R1,88 cents, remaining a leader on AltX in terms of year-on-year growth.
Issued by: Envisage Communications
(011) 325 5944/082 497 9827
On behalf of: OneLogix Group Limited
Ian Lourens, CEO
(011) 396 9040/ 082 440 9683
Share code: OLG
Issue date: 27 August 2012