| Fri 28 Aug 2009, 14:54 | | OLG - OneLogix - Consolidated Audited Financial Results For The Year Ended 31 |
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OLG
OLG
OLG - OneLogix - Consolidated Audited Financial Results For The Year Ended 31
May 2009
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG
ISIN Code: ZAE 000026399
("OneLogix" or "the group")
CONSOLIDATED AUDITED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2009
Highlights:
- NAV UP 15%
- NTAV UP 11%
- REVENUE UP 11%
- CASH FLOW FROM OPERATIONS UP 77%
- RFB ACQUISITION SUCCESSFULLY COMPLETED
CONDENSED CONSOLIDATED INCOME STATEMENT
Audited Audited
Year ended Year ended
31 May 31 May
2009 2008
R`000 R`000
Revenue 568 882 512 531
Operating and administration costs (491 169) (424 830)
Earnings before interest, taxation, depreciation 77 713 87 701
and amortisation (EBITDA)
Depreciation and amortisation (27 932) (25 288)
Impairment of intangible assets (1 698) -
Operating profit 48 083 62 413
Finance income 764 450
Finance costs (13 093) (12 738)
Share of associate income 4 86
Profit before taxation 35 758 50 211
Taxation (11 089) (14 286)
Net profit 24 669 35 925
Attributable to:
- Minority interest 4 278 7 322
- Equity holders of the company 20 391 28 603
Net profit 24 669 35 925
Number of shares in issue (`000):
- Total 210 131 210 131
- Weighted 210 131 210 131
- Diluted 210 131 210 131
Basic and diluted basic earnings per share 9,7 13,6
(cents)
Headline and diluted headline earnings per share 10,2 13,6
(cents)
Reconciliation between basic and headline
earnings
Basic earnings 20 391 28 603
Profit on disposal of property, plant and (120) (19)
equipment less taxation and minorities
Impairment of intangible assets less taxation 1 148 -
and minorities
Headline earnings 21 419 28 584
SEGMENTAL ANALYSIS
Revenue
Logistics 540 124 490 085
Services 28 758 22 446
568 882 512 531
Operating profit
Logistics 50 272 64 608
Services 9 570 7 165
Corporate (11 759) (9 360)
48 083 62 413
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Audited Audited
Year ended Year ended
31 May 31 May
2009 2008
R`000 R`000
Net cash generated from operations 73 665 41 570
Net cash flows from investing activities (58 185) (73 239)
Net cash flows from financing activities 2 918 22 400
Net increase/(decrease) in cash resources 18 398 (9 269)
Cash resources at beginning of year 9 001 18 270
Cash resources at end of year 27 399 9 001
CONDENSED CONSOLIDATED BALANCE SHEET
Audited Audited
At At
31 May 31 May
2009 2008
R`000 R`000
ASSETS
Non-current assets 270 175 227 533
Property, plant and equipment 213 406 181 450
Intangible assets 56 370 45 457
Interest in associate 120 116
Loans and receivables 279 510
Current assets 100 044 92 616
Inventories 5 044 3 189
Trade and other receivables 67 601 80 426
Cash resources 27 399 9 001
Total assets 370 219 320 149
EQUITY AND LIABILITIES
Equity 168 210 145 452
Ordinary shareholders` funds 153 482 133 091
Minority interests 14 728 12 361
Liabilities
Non-current liabilities 87 550 80 686
Interest-bearing borrowings 68 042 71 128
Deferred tax 18 605 9 558
Share-based compensation liability 903 -
Current liabilities 114 459 94 011
Trade and other payables 69 037 61 685
Interest-bearing borrowings 44 118 29 473
Taxation 1 304 2 853
Total equity and liabilities 370 219 320 149
Net asset value per share (cents) 73,0 63,3
Net tangible asset value per share (cents) 46,2 41,7
Commitments
Operating lease commitments (not exceeding five 15 490 12 454
years)
The group has authorised capital expenditure over the next twelve months
of R37,7 million. R2,4 million is already committed. Given the prevailing
economic conditions it is possible that the balance may not be utilised.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Retained
capital premium income
R`000 R`000 R`000
At 31 May 2007 1 973 32 484 44 751
Shares issued 128 14 916 -
Dividends declared in subsidiaries - - -
Minorities acquired on acquisition of - - -
subsidiary
Revaluation of land - - -
Net profit - - 28 603
At 31 May 2008 2 101 47 400 73 354
Dividends declared in subsidiaries - - -
Net profit - - 20 391
At 31 May 2009 2 101 47 400 93 745
Revaluation Other Minority
reserve reserves interests Total
R`000 R`000 R`000 R`000
At 31 May 2007 - 52 2 375 81 635
Shares issued - - - 15 044
Dividends declared in - - (975) (975)
subsidiaries
Minorities acquired on - - 923 923
acquisition of subsidiary
Revaluation of land 10 184 - 2 716 12 900
Net profit - - 7 322 35 925
At 31 May 2008 10 184 52 12 361 145 452
Dividends declared in - - (1 911) (1 911)
subsidiaries
Net profit - - 4 278 24 669
At 31 May 2009 10 184 52 14 728 168 210
COMMENTS
The directors of OneLogix present the consolidated audited financial results for
the year ended 31 May 2009 ("the year"). Notwithstanding difficult economic and
market conditions which adversely affected the group`s performance, particularly
in the second half of the year, OneLogix operations continued to hold onto
market share in their respective industries. In addition the businesses recorded
good growth year-on-year within less severely affected industries.
Basis of preparation
The accounting policies and method of measurement and recognition applied in
preparation of the consolidated audited annual financial statements are
consistent with those applied in the audited financial statements for the
previous year ended 31 May 2008.
The consolidated audited annual financial statements and the condensed
consolidated audited annual financial statements have been prepared in
accordance with International Financial Reporting Standards ("IFRS") and
International Accounting Standard ("IAS") 34 respectively, and the requirements
of the Companies Act (Act 61 of 1973).
The consolidated audited annual financial results have been audited by
PricewaterhouseCoopers Inc. and their unqualified audit opinion is available for
inspection at the registered offices of OneLogix.
Review of operations
The economic downturn particularly impacted group businesses operating in the
contracting automotive industry.
Nonetheless Vehicle Delivery Services ("VDS") performed credibly in the face of
a dramatically contracting market. Traditionally strong customer service ensured
that the customer base remained intact, and should ensure gains in market share
going forward.
Commercial Vehicle Delivery Services ("CVDS") was equally affected by the severe
decline in the commercial vehicle market. Its offering remains solid and CVDS
will continue to investigate broadening its customer base.
PostNet, a national franchised chain of 226 business service outlets for the
resilient SME market, was the group`s strongest performer and exceeded
expectations. PostNet remains a defensive asset for OneLogix with good growth
potential.
Although Media Express maintained its market share during the year, the weak
economy nonetheless resulted in a performance below par.
Press Support performed well. A focus on customer service, innovative management
and firm infrastructure ensured organic revenue and profit growth despite the
trading conditions. Several market opportunities have been identified and will
be pursued in the current financial year.
Magscene remains well-positioned with a compelling product offering in a
competitive market. The business has emerged better equipped following the
resolution during the year of challenging operational and administrative issues.
While 4Logix and Gijima performed well in a tough market, outlook for these
businesses has been muted by economic factors affecting the railing of bulk
commodities to ports within South Africa. (See `Post balance sheet events`).
Acquisitions
As previously announced on 11 March 2009 OneLogix acquired niche operators RFB
Logistics (Pty) Limited and PM Hire (Pty) Limited ("the RFB group") with effect
from the end of May 2009. The RFB group has a longstanding track record in
providing transport solutions throughout Southern Africa, with a particular
focus on the niche `abnormal load` market. The acquisition is in line with the
group`s diversification strategy within the framework of niche logistics
services.
Financial results
Revenue increased by 11% to R568,9 million from R512,5 million for the previous
year. The prevailing fuel price is a significant factor influencing revenue, and
during the year was on average 15% higher than in the previous year.
EBITDA declined by 11% from R87,7 million to R77,7 million, largely attributable
to the fixed costs required to support the levels of activity experienced during
the first half of the year. EBITDA included a R4,4 million write-off in Magscene
relating to uncollectable accounts receivable as well as a R0,9 million BEE
share trust charge. Accordingly with a net interest expense of R12,3 million,
this equates to satisfactory interest cover of 6,3 times.
Operating profit declined by 23% from R62,4 million to R48,1 million,
representing 8,5% of revenue. A R1,7 million impairment charge related to the
intangible assets associated with the Magscene acquisition was recognised during
the year. Net profit before taxation was down 29% from R50,2 million to R35,8
million. Headline earnings per share declined by 25% from 13,6 cents to 10,2
cents per share.
Reduced working capital requirements as a result of a slowdown in revenue
generation during the second half of the year, together with an improvement in
trade receivables collections, saw cash flow from operations increase from R41,6
million to R73,7 million.
The group invested R50,8 million in infrastructure: R26,5 million for fleet;
R5,3 million for IT infrastructure; R17,9 million for storage facilities; and
R1,1 million for other assets. The initial net cash payment of the purchase
price for the RFB group of R10,5 million was paid in the year. The
infrastructure spend and cash investment in the new acquisition were financed by
cash generated by operations and a R2,9 million increase in interest-bearing
borrowings.
Proceeds on disposal of assets raised R2,9 million. Cash resources at balance
sheet date increased by 204% from R9,0 million in the previous year to R27,4
million as at 31 May 2009.
Post balance sheet events
As previously announced, OneLogix has disposed of its interests in the 4Logix
and Gijima businesses with effect from 1 June 2009, in order to focus attention
on its higher margin core operations.
Prospects
It is expected that adverse economic conditions will continue to affect the
contracting automotive industry. However, the group`s reputed customer service
should ensure that market share is maintained in this industry by VDS and CVDS.
Further, PostNet and Press Support are anticipated to gain market share in their
respective industries. In addition the newly acquired RFB group should perform
well during the year ahead.
OneLogix will also continue to explore acquisitive opportunities which are
expected to arise in the current trading conditions. In accordance with the
group`s strategy possible acquisitions would be in aligned niche markets, and
are expected to further assist in offsetting the slowing of organic growth.
The group`s focus on highly competitive offerings in healthy niche markets
remains a key strength, and is well-supported by an established infrastructure
and experienced and motivated management.
People
We remain satisfied that the strong management teams and staff, undergoing
continual training and skills development, are well equipped to deliver on
strategic and operational objectives.
We thank our management, employees, business partners, customers, suppliers,
business advisors and shareholders for their continued and invaluable support.
By order of the board
Ian Lourens (CEO) Geoff Glass (FD)
28 August 2009
Directors:
SM Pityana (Chairman)*, NJ Bester, AC Brooking*
GM Glass (FD), AJ Grant*#, IK Lourens (CEO)
T Matshazi*, CV McCulloch (COO), JG Modibane*#
*Non-executive #Independent
Registered office:
46 Tulbagh Road, Pomona, Kempton Park
(Postnet Suite 10, Private Bag X27, Kempton Park, 1620)
Company Secretary:
Probity Business Services (Pty) Limited
Third Floor, The Mall Offices
11 Cradock Avenue, Rosebank, 2196
Transfer secretaries:
Computershare Investor Services (Pty) Limited
Ground Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Designated advisor
Java Capital (Proprietary) Limited
Date: 28/08/2009 14:54:01 Produced by the JSE SENS Department.
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