| Tue 21 Aug 2007, 9:40 | | OLG - OneLogix - Audited Annual Financial Results |
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OLG
OLG
OLG - OneLogix - Audited Annual Financial Results For The Year Ended 31 May 2007
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG & ISIN Code: ZAE000026399
("OneLogix" or "the group")
AUDITED ANNUAL FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2007
HIGHLIGHTS
* REVENUE UP 57%
* OPERATING PROFIT UP 74%
* HEPS UP 23%
* CASH GENERATED FROM OPERATIONS UP 92%
CONDENSED CONSOLIDATED INCOME STATEMENT
Audited Audited
Year ended Year ended
31 May 2007 31 May 2006
R`000 R`000
Revenue 263 338 167 890
Operating and administration costs (216 416) (142 525)
Earnings before interest, taxation, 46 922 25 365
depreciation and amortisation (EBITDA)
Depreciation and amortisation (12 139) (5 360)
Operating profit 34 783 20 005
Finance income 372 240
Finance costs (5 487) (2 027)
Profit before taxation 29 668 18 218
Taxation (8 798) (2 377)
Share of associate income 30 -
Net profit 20 900 15 841
Attributable to:
- Minority interest 1 916 460
- Equity holders of the company 18 984 15 381
Net profit 20 900 15 841
Number of shares in issue (`000):
- Total 197 273 197 273
- Weighted 197 273 197 273
- Diluted 197 273 197 273
Basic and headline earnings per share
(cents)
- Basic and fully diluted 9,6 7,8
SEGMENTAL ANALYSIS
Revenue
Logistics 242 352 149 923
Services 20 986 17 967
263 338 167 890
Operating profit
Logistics 37 223 21 480
Services 5 715 4 448
Corporate (8 155) (5 923)
34 783 20 005
Commitments
Operating lease commitments (not 3 992 827
exceeding five years)
The group has authorised capital expenditure over the next twelve months of R50
million. R22 million is already committed.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Year ended Year ended
31 May 2007 31 May 2006
R`000 R`000
Net cash generated from operations 40 528 21 107
Net cash flows from investing activities (72 221) (38 350)
Net cash flows from financing activities 43 588 17 548
Net increase in cash resources 11 895 305
Cash resources at beginning of year 6 375 6 070
Cash resources at end of year 18 270 6 375
CONDENSED CONSOLIDATED BALANCE SHEET
Audited Audited
at at
31 May 2007 31 May 2006
R`000 R`000
ASSETS
Non-current assets 144 396 84 113
Property, plant and equipment 123 598 63 661
Intangible assets 20 251 19 919
Interest in associate 30 -
Loans and receivables 517 533
Current assets 61 971 33 440
Inventories 1 986 2 310
Trade and other receivables 41 715 24 755
Cash resources 18 270 6 375
Total assets 206 367 117 553
EQUITY AND LIABILITIES
Equity 81 635 60 883
Ordinary shareholders` funds 79 260 60 224
Minority interests 2 375 659
Liabilities
Non-current liabilities 62 534 28 648
Interest-bearing borrowings 56 553 24 381
Deferred tax 5 981 4 267
Current liabilities 62 198 28 022
Trade and other payables 35 138 17 287
Interest-bearing borrowings 20 181 8 765
Taxation 6 879 1 970
Total equity and liabilities 206 367 117 553
Net asset value per share (cents) 40,2 30,5
Net tangible asset value per share (cents) 29,9 20,4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retained
capital premium income
At 1 June 2005 1 973 32 619 10 386
Share issue expenses - (135) -
Net profit - - 15 381
At 31 May 2006 1 973 32 484 25 767
Profit on sale of shares by the - - -
staff trust
Dividend declared in subsidiary - - -
Net profit - - 18 984
At 31 May 2007 1 973 32 484 44 751
Other Minority
reserves interests Total
At 1 June 2005 - 199 45 177
Share issue expenses - - (135)
Net profit - 460 15 841
At 31 May 2006 - 659 60 883
Profit on sale of shares by the 52 - 52
staff trust
Dividend declared in subsidiary - (200) (200)
Net profit - 1 916 20 900
At 31 May 2007 52 2 375 81 635
COMMENTS
The directors of OneLogix Group Limited ("OneLogix" or "the company") are
pleased to present the audited annual financial results for the year ended 31
May 2007 ("the year").
Basis of presentation
OneLogix adopted International Financial Reporting Standards ("IFRS") for the
previous financial year ended 31 May 2006 ("the previous year"). IFRS has
accordingly been consistently applied for the year.
The annual financial results have been audited by PricewaterhouseCoopers Inc.
and their unqualified audit opinion is available for inspection at the
registered office of OneLogix.
Review of operations
The group`s businesses continue to perform well across the board:
Vehicle Delivery Services ("VDS") remains the group`s stellar performer. VDS`
growth strategy implemented over the past few years continues to drive a
superior performance in the cross-border as well as the local auto-logistics
markets. The strategy has been furthered by continued investment in fleet
expansion, facilities, IT software, people, improved management efficiency and
the culture within the company. This has enabled VDS to grow its existing
business base and significantly expand its market share.
PostNet, a franchised chain of 218 business service outlets which serve the high
growth SME market, has delivered another good performance. The successful
revitalisation of the PostNet brand over the past two years has built a solid
platform for future growth.
Media Express performed well to retain a substantial market share in the price
sensitive niche market of express printed media delivery. The company
successfully expanded its product range during the year by leveraging synergies
within its regional network and within PostNet`s services offering including
excess baggage and same-day courier services.
4Logix and Gijima performed well, led by a skilled management team.
Long-term contracts of a high revenue, low margin nature offer solid growth
prospects. The business provides logistics solutions for the rail of bulk
commodities to ports throughout South Africa.
Acquisition
As previously announced on 26 June 2007 OneLogix has acquired Press Support - a
newspaper and magazine distribution company. This is a complementary business to
Media Express and expands OneLogix`s established footprint in the printed media
distribution market.
Financial results
Revenue for the group increased by 57% from R168 million to R263 million.
Operating profit grew by 74% to R34,8 million, representing approximately 13% of
revenue. Net profit before tax was up 63% from R18,2 million to R29,7 million.
Headline earnings per share rose by 23% from 7,8 cents per share to 9,6 cents
per share.
The group`s effective tax rate is now more representative of the future tax rate
at 30% (2006: 13%).
Despite the increased working capital requirements commensurate with growth in
revenue, cash generated from operations increased from R21,1 million to R40,5
million which again underpinned earnings. The group invested a total of R72,2
million in infrastructure. Approximately R12,8 million was allocated to vehicle
storage facilities, R3,7 million to IT infrastructure, R54,6 million to the
expansion of the VDS fleet and R1,1 million to other assets. The infrastructure
spend was financed by cash generated from operations and a R43,6 million
increase in interest-bearing borrowings.
As all previous tax losses are now fully reversed, the group will be in a tax-
paying position in 2008 and anticipates that cash flows generated from
operations will accordingly reduce in relation to earnings in the new financial
year.
Property, plant and equipment includes land and buildings, mainly situated in
Pomona, Kempton Park at a cost of R30 million and also in Pinetown, Durban at a
cost of R4,7 million. These properties were financed at favourable fixed rates
over a 10 year period and represent R14,9 million of the group`s interest-
bearing borrowings at year-end. These properties are accounted for at cost and
any improvements are amortised over 10-20 years.
BEE
The interim results for the six months ended 30 November 2006, as published on 7
February 2007, set out the impact on attributable earnings of the group`s BEE
deal in terms of which 25,1% of earnings is attributable to the group`s BEE
partners. In the first half of the year this was not accounted for as the
historical accumulated loss which had resided in the group`s main operating
subsidiary, OneLogix (Pty) Limited, had not been completely reversed. Following
complete reversal in the second half of the year, OneLogix accounted for the
impact of the BEE transaction on attributable earnings, which will continue
going forward. The effective impact for the year was a reduction in attributable
earnings of 5,6%. Had the group been required to account for the impact for the
full year, there would have been a reduction in attributable earnings of
approximately 16%.
Prospects
The outlook for the year ahead to May 2008 remains positive.
The directors believe that organic growth will be the key driver of the group`s
growth in the year ahead. This should be sustainable over the medium to long-
term as a result of the group`s strategic positioning in lucrative niche markets
and skilled management with a customer-centric approach and strong execution of
operational and business processes.
VDS in particular will enjoy the full benefit of major local market contracts,
certain of which became operational late in the year and others of which will
become operational in September 2007, after year-end. In addition the recently
acquired Press Support business will contribute towards earnings for a full year
with effect from June 2007.
OneLogix will also continue to investigate further earnings-enhancing
acquisitive opportunities.
People
We are satisfied that OneLogix is continually enhancing its strong management
team to deliver well on strategic and operational objectives.
We thank all management, employees, business partners, customers, suppliers,
business advisors and shareholders for their continued support.
By order of the board
Ian Lourens (CEO) Cameron McCulloch (Financial Director)
21 August 2007
Directors: SM Pityana (Chairman)*, NJ Bester, AC Brooking*, AJ Grant*#, IK
Lourens (CEO), T Matshazi*, CV McCulloch (Financial Director), JG Modibane*#.
* Non-executive director # independent director
Registered office: 46 Tulbagh Road, Pomona, Kempton Park (PO Box 85392,
Emmarentia, 2029)
Company secretary: Probity Business Services (Proprietary) Limited, Third Floor,
JHI House, 11 Cradock Avenue, Rosebank 2196
Transfer secretaries: Computershare Investor Services 2004 (Proprietary)
Limited, Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Date: 21/08/2007 09:40:27 Produced by the JSE SENS Department.
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