| Wed 13 Feb 2008, 9:00 | | OLG - OneLogix - Unaudited Interim Results For The Six Months Ended |
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OLG
OLG
OLG - OneLogix - Unaudited Interim Results For The Six Months Ended
30 November 2007
OneLogix Group Limited
(Registration number 1998/004519/06)
Share code: OLG & ISIN: ZAE000026399
("OneLogix" or "the company")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2007
HIGHLIGHTS
* Revenue up 95%
* Operating profit up 100%
* HEPS up 41%
* Cash generated from operations up 90%
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2007 2006 2007
% R`000 R`000 R`000
Revenue 95 249 013 127 734 263 338
Operating and 91 (202 997) (106 242) (216 416)
administration costs
Earnings before interest, 114 46 016 21 492 46 922
taxation, depreciation and
amortisation (EBITDA)
Depreciation on property, 141 (11 294) (4 686) (12 035)
plant and equipment
Amortisation of intangibles (1 505) (194) (104)
Operating profit 100 33 217 16 612 34 783
Finance income 184 110 372
Finance costs (5 297) (2 011) (5 487)
Profit before taxation 91 28 104 14 711 29 668
Taxation (8 611) (4 324) (8 798)
Share of associate income 57 - 30
Net profit 88 19 550 10 387 20 900
Attributable to:
- Minority interest 4 481 264 1 916
- Equity holders of the 49 15 069 10 123 18 984
company
Net profit 88 19 550 10 387 20 900
Number of shares in issue
(`000):
- Total 210 131 197 273 197 273
- Weighted 210 131 197 273 197 273
- Diluted 210 131 197 273 197 273
Basic and headline earnings
per share (cents)
- Basic and fully diluted 41 7,2 5,1 9,6
Calculation of headline
earnings
- Net profit attributable 15 069 10 123 18 984
to shareholders
Adjusted for:
Profit on sale of fixed (8) - (122)
assets adjusted for tax
Headline earnings 15 061 10 123 18 862
SEGMENTAL ANALYSIS
Revenue
Logistics 104 237 854 116 737 242 352
Services 1 11 159 10 997 20 986
249 013 127 734 263 338
Operating profit
Logistics 92 33 938 17 703 37 223
Services 45 3 820 2 642 5 715
Corporate 22 (4 541) (3 733) (8 155)
33 217 16 612 34 783
Commitments
Operating lease commitments 16 343 569 3 992
(not exceeding five years)
The group has authorised capital expenditure over the next six months of R12
million. R12 million is already committed.
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2007 2006 2007
R`000 R`000 R`000
Net cash generated from 19 550 10 295 40 528
operations
Net cash flows from investing (41 545) (34 301) (72 221)
activities
Net cash flows from financing 18 772 24 578 43 588
activities
Net (decrease)/increase in cash (3 223) 572 11 895
resources
Cash resources at beginning of 18 270 6 375 6 375
period
Cash resources at end of period 15 047 6 947 18 270
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
At At At
30 November 30 November 31 May
2007 2006 2007
R`000 R`000 R`000
ASSETS
Non-current assets 216 159 113 502 144 396
Property, plant and equipment 169 379 92 657 123 598
Intangible assets 46 331 19 786 20 251
Interest in associate 87 - 30
Loans and receivables 362 1 059 517
Current assets 98 514 46 837 61 971
Inventories 5 905 2 397 1 986
Trade and other receivables 77 562 37 493 41 715
Cash resources 15 047 6 947 18 270
Total assets 314 673 160 339 206 367
EQUITY AND LIABILITIES
Equity 129 001 71 070 81 635
Ordinary shareholders` funds 118 992 70 347 79 260
Minority interests 10 009 723 2 375
Liabilities
Non-current liabilities 87 116 48 752 62 534
Interest-bearing borrowings 78 406 43 072 56 553
Deferred tax 8 710 5 680 5 981
Current liabilities 98 556 40 517 62 198
Trade and other payables 58 026 22 897 35 138
Interest-bearing borrowings 26 442 14 839 20 181
Taxation 14 088 2 781 6 879
Total equity and liabilities 314 673 160 339 206 367
Net asset value per share 56,6 35,7 40,2
(cents)
Net tangible asset value per 34,6 25,6 29,9
share (cents)
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Revalua-
Share Share Retained tion
capital premium income reserve
At 1 June 2006 1 973 32 484 25 767 -
Dividend declared - - - -
Net profit - - 10 123 -
At 30 November 2006 - audited 1 973 32 484 35 890 -
Profit on sale of shares by - - - -
the staff trust
Net profit - - 8 861 -
At 31 May 2007 - audited 1 973 32 484 44 751 -
Shares issued 128 14 916 - -
On acquisition of Press - - - -
Support
Dividend declared - - - -
Revaluation of property - - - 9 619
Net profit - - 15 069 -
At 30 November 2007 - 2 101 47 400 59 820 9 619
unaudited
Other Minority
reserve interests Total
At 1 June 2006 - 659 60 883
Dividend declared - (200) (200)
Net profit - 264 10 387
At 30 November 2006 - audited - 723 71 070
Profit on sale of shares by 52 - 52
the staff trust
Net profit - 1 652 10 513
At 31 May 2007 - audited 52 2 375 81 635
Shares issued - - 15 044
On acquisition of Press - 922 922
Support
Dividend declared - (975) (975)
Revaluation of property - 3 206 12 825
Net profit - 4 481 19 550
At 30 November 2007 - 52 10 009 129 001
unaudited
COMMENTS
The directors of OneLogix are pleased to present the unaudited interim financial
results for the six months ended 30 November 2007 ("the interim period"), which
reflect exceptional growth in all key performance indicators.
Basis of preparation
The accounting policies applied in preparation of the unaudited interim
financial statements are consistent with those applied in the audited annual
financial statements for the previous year ended 31 May 2007, except for the
change in policy of re-valuating the properties and not carrying them at cost.
OneLogix has applied International Financial Reporting Standards ("IFRS") since
the financial year ended 31 May 2006 and accounting policies are therefore in
accordance with IFRS, International Accounting Standard (IAS 34) and the
Companies Act (Act 61 of 1973) as amended.
These results have not been audited or reviewed by the company`s auditors.
Review of operations
The group`s businesses have continued their positive growth trend and during the
period outperformed expectations.
Vehicle Delivery Services` ("VDS") growth strategy, implemented over recent
years, has involved continued investment in fleet expansion, facilities, IT
hardware and software, people and management efficiency. The success of the
strategy is reflected in the company`s strong foothold, and during the interim
period growth in market share, in the cross-border and local passenger vehicle
logistics markets. In September 2007 VDS entered the local commercial vehicle
market. The sector has shown strong growth on the back of the buoyant
construction and mining industries, as well as the taxi recapitalisation
programme.
PostNet, a franchised chain of 221 business service outlets for the high-growth
SME market, delivered a record performance setting a new benchmark for future
growth targets. The process of continually evaluating existing and new business
opportunities is well entrenched.
Media Express continued to perform well to retain a substantial share in the
price-sensitive niche market of express delivery service. The horizontal
integration of service offerings across the group is proving successful - an
expanded Media Express product range within PostNet`s service offering,
particularly its excess baggage option is meeting positive response.
Press Support and Magscene, recent acquisitions in June 2007, contributed
towards earnings for the first time during the interim period and excelled ahead
of expectations. These companies distribute newspapers and magazines direct to
the end user and have strengthened OneLogix`s established footprint in the
printed media market.
4Logix and Gijima performed well, led by a skilled management team. The business
provides logistics solutions for the rail of bulk commodities to ports within
South Africa. Long-term contracts of a high revenue, low margin nature offer
solid growth prospects.
Financial results
The excellent performances of group businesses across the board resulted in
exceptional growth for the interim period. Revenue increased by 95% to R249
million from R128 million in the previous interim period ended 30 November 2006.
Operating profit grew by 100% to R33,2 million, representing 13,3% of revenue.
Headline earnings per share ("HEPS") grew by 41% to 7,2 cents per share from 5,1
cents per share. The group incurred a R1,3 million charge, attributable to the
amortisation of intangibles associated with the acquisition of Press Support for
the interim period. The properties were revalued on 30 November 2007 by R15
million.
Notwithstanding the growth in revenue, the group`s debtors` days remain
satisfactory and in line with prior periods.
Depreciation has increased by 141% to R11,3 million as a result of the expanded
VDS fleet in order to service the growth of business. Interest paid increased
significantly to R5,3 million, as a result of the investment into infrastructure
required to service the growing VDS market.
BEE
As previously announced the full dilution resulting from the group`s BEE
transaction was incurred in the interim period at 18,5% (2006: 0%), in
comparison with 5,6% in the previous financial year.
Prospects
On balance revenue is historically weighted to the first half of the financial
year. However, the outlook for the full financial year to May 2008 remains
positive. Organic growth will continue to be the key driver of the group`s
growth.
Notwithstanding a contraction in the local passenger vehicle market resulting
from the increase in interest rates and the impact of the new National Credit
Act, VDS`s growth will be secured by its gain in market share to date, continued
success in the buoyant local commercial vehicle market and sustainable growth in
the cross-border market. This, together with the strong growth prospects of the
other group businesses, is anticipated to drive growth in HEPS for the year to
May 2008 notwithstanding the dilution of earnings resulting from the BEE
transaction.
OneLogix will further continue to investigate earnings-enhancing acquisition
opportunities.
In the interests of increasing the liquidity of the OneLogix share to
accommodate demand, certain directors have agreed to release a limited amount of
their personal shareholdings onto the market during the next few months.
People
OneLogix bade farewell to Dirk Holl, general manager of VDS, in December 2007
when he left to settle abroad. We thank him for his valued contribution over the
years and wish him well.
A number of changes will shortly be effected to the board of OneLogix. The
directors are pleased to announce that Cameron McCulloch, former CFO of
OneLogix, has been promoted to the newly-created position of COO. The keen
insight garnered as CFO makes him ideally suited for this important role.
Geoff Glass will be engaged as the new CFO with effect 1 March 2008. His skill,
experience and intimate knowledge of the major markets within which OneLogix
operates will provide valuable guidance to the group.
We remain confident that the management team being developed is equipped with
appropriate skills to steer the group`s continued growth.
We thank our management, employees, business partners, customers, suppliers,
business advisors and shareholders for their continued invaluable support.
By order of the board
Ian Lourens (CEO) CV McCulloch (CFO)
13 February 2008
Directors:
SM Pityana (Chairman)*, NJ Bester, AC Brooking*, AJ Grant*#, IK Lourens (CEO), T
Matshazi*, CV McCulloch (CFO), JG Modibane*#.
* Non-executive director # Independent director
Company secretary:
Probity Business Services (Proprietary) Limited, Third Floor, JHI House, 11
Cradock Avenue, Rosebank, 2196
Registered offices:
46 Tulbagh Road, Pomona, Kempton Park (PO Box 85392, Emmarentia, 2029)
Transfer secretaries:
Computershare Investor Services 2004 (Proprietary) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001 (PO Box 61051,
Marshalltown, 2107)
Investor relations:
Envisage Investor & Corporate Relations
Designated advisor:
Java Capital (Proprietary) Limited
Date: 13/02/2008 09:00:09 Produced by the JSE SENS Department.
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