| Mon 21 Feb 2011, 8:00 | | OLG - OneLogix Group Limited - Unaudited condensed consolidated interim |
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OLG
OLG
OLG - OneLogix Group Limited - Unaudited condensed consolidated interim
financial results for the six months ended 30 November 2010
OneLogix Group Limited
(Registration number 1998/004519/06)
Share Code: OLG ISIN Code: ZAE000026399
("OneLogix" or "the group")
UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS
ENDED 30 NOVEMBER 2010
HIGHLIGHTS
- Profit and comprehensive income up 54%
- HEPS up 47%
- HEPS from continuing operations up 72%
- NAV up 18%
- NTAV up 44%
- Cash generated by continuing operations up 152%
- Cash resources of R60 million
- Interim capital distribution of 4 cents per share
Condensed Consolidated Statement of Comprehensive Income
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2010 2009 2010
% R`000 R`000 R`000
Continuing operations
Revenue 51 346 320 229 285 496 769
Operating and administration
costs 53 (287 679) (187 648) (411 256)
Depreciation and amortisation
22 (18 825) (15 474) (33 699)
Operating profit 52 39 816 26 163 51 814
Finance income 316 1 165 280 701
Finance costs (36) (3 487) (5 453) (9 798)
Profit before taxation 79 37 494 20 990 42 717
Taxation 77 (10 639) (6 026) (12 366)
Profit from continuing
operations 79 26 855 14 964 30 351
Profit from discontinued (100) - 2 453 12 272
operations
Profit for the period 54 26 855 17 417 42 623
Other comprehensive income
Movement in foreign currency
translation reserve (18) - -
Total comprehensive income for
the period 54 26 837 17 417 42 623
Profit attributable to:
- Minority interest 5 913 2 802 7 912
- Equity holders of the
company 20 942 14 615 34 711
54 26 855 17 417 42 623
Other comprehensive income
attributable to:
- Minority interest (4) - -
- Equity holders of the
company (14) - -
(18) - -
Total comprehensive income
attributable to:
- Minority interest 5 909 2 802 7 912
- Equity holders of the
company 20 928 14 615 34 711
54 26 837 17 417 42 623
Number of shares in issue
(`000):
- Total 202 131 210 131 210 131
- Weighted 206 066 210 131 210 131
- Diluted 202 131 210 131 210 131
Basic and headline earnings per
share (cents)
Basic and diluted basic
earnings per share (cents) 46 10,2 7,0 16,5
Headline and diluted headline
earnings per share (cents)
47 10,3 7,0 13,0
Continuing operations:
Basic and diluted basic
earnings per share (cents) 70 10,2 6,0 11,8
Headline and diluted headline
earnings per share (cents)
72 10,3 6,0 11,8
Discontinuing operations:
Basic and diluted basic
earnings per share (cents) 0,0 1,0 4,7
Headline and diluted headline
earnings per share (cents)
0,0 1,0 1,2
Reconciliation between basic
and headline earnings
Basic earnings 20 942 14 615 34 711
Profit on disposal of property,
plant and equipment less
taxation and minorities
(65) 97 (29)
Professional fees related to
specific repurchase of shares
260 - -
Profit on disposal of
discontinued operation less
taxation and minorities - 15 (7 442)
Headline earnings 21 137 14 727 27 240
Condensed Consolidated Statement of Cash Flows
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
30 November 30 November 31 May
2010 2009 2010
R`000 R`000 R`000
Net cash generated from operations 49 865 24 354 65 518
Continuing operations 49 865 19 803 59 277
Discontinuing operations - 4 551 6 241
Net cash flows from investing
activities (41 402) (19 096) (18 326)
Continuing operations (41 402) (18 280) (46 588)
Discontinuing operations - (816) 28 262
Net cash flows from financing
activities (8 696) (70) (14 358)
Continuing operations (8 696) 7 (14 715)
Discontinuing operations - (77) 357
Net (decrease)/increase in cash
resources (233) 5 188 32 834
Cash resources at beginning of six
months 60 233 27 399 27 399
Cash resources at end of six months 60 000 32 587 60 233
The group has authorised capital
expenditure over the next six months
of R31,3 million. R20,1 millionis
already committed.
Commitments
Operating lease commitments (not
exceeding five years) 13 581 9 627 8 715
Condensed Consolidated Statement of Financial Position
Unaudited Unaudited Audited
At At At
30 November 30 November 31 May
2010 2009 2010
R`000 R`000 R`000
ASSETS
Non-current assets 280 525 271 745 258 119
Property, plant and equipment
240 670 209 272 217 682
Intangible assets 32 998 54 922 33 550
Interest in associate - 120 -
Loans and receivables 6 857 7 431 6 887
Current assets 173 458 115 086 160 853
Inventories 10 384 6 204 9 525
Trade and other receivables 102 216 76 295 88 866
Taxation 858 - 2 229
Cash resources 60 000 32 587 60 233
Total assets 453 983 386 831 418 972
EQUITY AND LIABILITIES
Equity 214 189 182 689 201 316
Ordinary shareholders` funds 189 953 168 097 181 889
Minority interests 24 236 14 592 19 427
Liabilities
Non-current liabilities 91 765 86 256 83 390
Interest-bearing borrowings 68 245 66 972 61 208
Deferred tax 19 988 17 898 20 196
Share-based compensation
liability 3 532 1 386 1 986
Current liabilities 148 029 117 886 134 266
Trade and other payables 99 032 72 604 86 330
Interest-bearing borrowings 43 637 42 888 46 506
Taxation 5 360 2 394 1 430
Total equity and liabilities 453 983 386 831 418 972
Net asset value per share
(cents) 94,0 80,0 86,6
Net tangible asset value per
share (cents) 77,7 53,9 70,6
Cash resources per share 29,7 15,5 28,7
(cents)
SEGMENTAL ANALYSIS
Revenue
Automotive and abnormal 59 317 426 199 863 441 041
Retail (12) 15 582 17 614 30 585
Media 13 13 312 11 808 25 143
Continuing operations 51 346 320 229 285 496 769
Discontinued operations (100) - 31 352 56 206
33 346 320 260 637 552 975
Segment results
Automotive and abnormal 63 41 741 25 659 51 980
Retail (2) 5 387 5 494 11 780
Media 306 955 235 129
Corporate 58 (8 267) (5 225) (12 075)
Continuing operations 52 39 816 26 163 51 814
Discontinued operations (100) - 3 442 3 878
34 39 816 29 605 55 692
Unallocated:
Finance income 316 1 165 280 701
Finance income (36) (3 487) (5 453) (9 798)
Discontinued operations (100) - (3 442) (3 878)
79 37 494 20 990 42 717
Total assets
Automotive and abnormal 21 385 930 318 268 350 639
Retail 1 17 343 17 209 16 767
Media 30 9 337 7 201 8 336
Corporate 412 41 373 8 086 43 230
Continuing operations 29 453 983 350 764 418 972
Discontinued operations (100) - 36 067 -
17 453 983 386 831 418 972
Total liabilities
Automotive and abnormal 29 181 871 140 498 161 051
Retail (51) 7 170 14 512 7 568
Media 52 10 313 6 767 11 505
Corporate 1 15 092 15 005 15 906
Continuing operations 21 214 446 176 782 196 030
Discontinued operations (100) - 7 068 -
Unallocated: Taxation and 25 25 348 20 292 21 626
deferred taxation
17 239 794 204 142 217 656
Condensed Consolidated Statement of Changes in Equity
Share Share Retained Revaluation
capital premium income reserve
R`000 R`000 R`000 R`000
At 1 June 2009 - audited 2 101 47 400 93 745 10 184
Dividends declared in
subsidiaries - - - -
Dividends declared in
discontinued operations - - - -
Minority interests disposed - - - -
Comprehensive income - - 14 615 -
At 30 November 2009 -
unaudited 2 101 47 400 108 360 10 184
Dividends declared in
subsidiaries - - - -
Capital distribution - (6 304) - -
Minority interests purchased
- - - -
Comprehensive income - - 20 096 -
At 31 May 2010 - audited 2 101 41 096 128 456 10 184
Dividends declared in
subsidiaries - - - -
Specific share repurchase (80) (6 720) - -
Capital distribution - (6 064) - -
Profit for the period - - 20 942 -
Other comprehensive income - - - -
At 30 November 2010 -
unaudited 2 021 28 312 149 398 10 184
Other Foreign Minority
currency
reserves translation interests Total
reserve
R`000 R`000 R`000 R`000
At 1 June 2009 - audited 52 - 14 728 168 210
Dividends declared in
subsidiaries - - (1 100) (1 100)
Dividends declared in
discontinued operations - - (1 709) (1 709)
Minority interests disposed
- - (129) (129)
Comprehensive income - - 2 802 17 417
At 30 November 2009 -
unaudited 52 - 14 592 182 689
Dividends declared in
subsidiaries - - (200) (200)
Capital distribution - - - (6 304)
Minority interests purchased
- - (75) (75)
Comprehensive income - - 5 110 25 206
At 31 May 2010 - audited 52 - 19 427 201 316
Dividends declared in
subsidiaries - - (1 100) (1 100)
Specific share repurchase - - - (6 800)
Capital distribution - - - (6 064)
Profit for the period - - 5 913 26 855
Other comprehensive income - (14) (4) (18)
At 30 November 2010 -
unaudited 52 (14) 24 236 214 189
COMMENTS
The directors of OneLogix are pleased to present the unaudited condensed
consolidated interim financial results for the six months ended 30 November 2010
("the interim period"), reflecting an exceptionally strong performance. The
group effectively capitalised on the progressive upturn in the niche markets in
which it operates through continued reinforcement of its leading market position
in its areas of operation to achieve the results.
Basis of preparation
The unaudited condensed consolidated interim financial statements have been
prepared in accordance with International Accounting Standard (IAS) 34 `Interim
financial reporting`, the AC 500 series of interpretations, the requirements of
the South African Companies Act and the Listings Requirements of the JSE
Limited. The unaudited condensed consolidated interim financial information
should be read in conjunction with the most recent audited annual financial
statements for the year ended 31 May 2010 ("the annual financial statements"),
which have been prepared in accordance with International Financial Reporting
Standards (`IFRS`).
Accounting policies and computations are consistently applied as in the annual
financial statements. These condensed consolidated interim financial statements
have not been audited or reviewed by PricewaterhouseCoopers Inc.
Review of operations
As a result of prior strategic planning and implementation of initiatives and
systems, the group`s companies were well-positioned to benefit from the recent
improvement in the niche markets in which it operates.
Vehicle Delivery Services ("VDS") maintained its robust track record with a
continued strong performance. The economic recovery worked to the company`s
advantage, revitalising its market of operation. This was underpinned by
infrastructure investments, an historically proven market leading position,
stellar customer service, sound business processes and efficiency levels.
With similarly boosted market conditions, Commercial Vehicle Delivery Services
("CVDS") also performed ahead of expectations. The customer base was expanded
and the company`s exceptional delivery record maintained.
PostNet`s 231 franchised stores, operating in the resilient SME sector,
continued to deliver a stellar performance and maintained superior profit
margins. PostNet`s annuity-based revenue ensures that it remains a defensive
asset for OneLogix with continued promising growth prospects.
Magscene delivered a more stable performance during the interim period, which is
expected to be maintained going forward.
The RFB Logistics ("RFB") acquisition has proven beneficial to the group, as
anticipated. RFB serves a diversified customer base in the general freight and
abnormal load market. Notwithstanding a highly competitive environment, the
company outstripped expectations. The performance was largely attributable to an
expanded fleet, upgraded administration processes, consistently good customer
service and appropriate exploitation of group synergies.
During the period the group established OneLogix Projex ("Projex"). Projex works
closely with RFB and specialises in the project logistics and abnormal transport
market. Highly experienced management has ensured that a substantial and loyal
customer base has been built, which bodes well going forward.
Onelogix`s most recent acquisition, Atlas Panelbeaters, also continued to
perform ahead of expectations. A thorough review of operations, improved and new
infrastructure and development of management have ensured continued success.
Discontinued operations
The outstanding sale conditions relating to the disposal of certain of the
group`s media interests to Media24 Limited have been fulfilled, and the deferred
payment of R5,5 million was received in December 2010.
The statement of comprehensive income and the cash flow statement distinguish
discontinued operations from continuing operations. Comparative figures have
been restated.
Specific share repurchase
As previously announced on 27 July 2010, the specific share repurchase and
subsequent cancellation of 8 million shares, purchased from Jeremy Eaton and The
Eaton Family Trust at R0,85 per share, have been implemented (in accordance with
the Companies Act, 1973 and the JSE Listings Requirements) with effect from 30
August 2010.
Financial results
Revenue from continuing operations for the interim period increased 51% on the
back of a significant upturn in the automotive and abnormal load markets as well
as the first time contributions from the newly acquired and established
businesses (see Review of Operations above).
Operating profit, representing 11,5% (November 2009: 11,4%) of revenue, rose by
52% from R26,2 million to R39,8 million. The increase is attributable to an
improved utilisation of infrastructure within the group on the back of greater
workload and higher revenue being generated during the interim period. A charge
of R1,5 million relating to the BEE share trust, of which R0,6 million related
to employees of discontinued operations, was incurred during the interim period.
The fleet is currently fully operational and deployed across the group`s
businesses, with further expansion being considered.
Due to the comparatively lower lending rates as well as substantially increased
cash resources, net finance costs decreased by 55% from R5,2 million to R2,3
million. This further enhanced profit before taxation which increased 79% from
R21,0 million to R37,5 million.
Headline earnings per share ("HEPS") grew 47% from 7,0 cents to 10,3, cents.
HEPS from continuing operations was up 72% from 6,0 cents to 10,3 cents.
Increased revenue generation and strict working capital structures saw cash flow
from operations from continuing operations increase 152% from R19,8 million to
R49,9 million.
During the interim period the group invested R42,8 million in continuing
operations infrastructure as follows: R32,1 million for fleet, R7,3 million for
property developments, R1,5 million for IT infrastructure; and R1,9 million for
other assets. Net proceeds on disposal of tangible assets raised R1,4 million.
New interest-bearing borrowings of R35,6 million were raised during the interim
period, set off by repayments of interest-bearing borrowings of R31,4 million.
Capital distribution No. 2, totalling R6,1 million was paid in the interim
period. A further R6,8 million was invested in the share repurchase transaction
as detailed above (see Specific Share Repurchase).
Cash resources at the reporting date increased by 84% from R32,6 million to
R60,0 million, which is in line with the cash holdings at 31 May 2010 of R60,2
million.
Capital distribution
Shareholders are advised that a cash capital distribution of 4,0 cents per share
(November 2009: 3,0 cents) by way of a capital reduction out of share premium
has been declared for the interim period ("interim capital distribution No. 3").
The salient dates in respect of the capital 2011
distribution are as follows:
Last day to trade cum dividend on Thursday, 17 March
Shares will trade ex dividend from Friday, 18 March
Record date Friday, 25 March
Payment of dividend Monday, 28 March
Shareholders may not de-materialise or re-materialise their shares between
Friday, 18 March 2011 and Friday, 25 March 2011, both dates inclusive.
The interim capital distribution, amounting to R8,1 million, has not been
recognised as a liability in the condensed consolidated interim financial
statements. It will be recognised in shareholders` equity (utilised against
share premium) in the year to 31 May 2011.
OneLogix will continue to assess the payment of interim and final capital
distributions in light of the board`s ongoing review of earnings, after
providing for long-term growth and cash/debt resources, the amount of reserves
available using a going concern assessment and covenants of banking facilities
providers.
Prospects
Revenue is traditionally weighted to the first half of the financial year.
Notwithstanding this, the outlook for the full financial year to May 2011
remains positive. The group is expected to continue benefitting from its proven
leading market positions, superior customer service and solid business processes
supported by a skilled and motivated management team. OneLogix also has a
comparatively large cash reserve and will continue to assess appropriate
earnings-enhancing acquisitions.
In the interests of increasing the liquidity of the OneLogix share and to
accommodate demand, certain directors have agreed to release a limited amount of
their personal shareholdings onto the market during the coming months.
People
Tsakani Matshazi resigned as a non-executive director of OneLogix (and of all
the OneLogix subsidiaries of which she was a director) with effect from 22
November 2010. Tsakani was appointed to the board of OneLogix and its
subsidiaries as a representative of the company`s empowerment partner and
shareholder, Izingwe Holdings (Pty) Limited. As she has left Izingwe to pursue
new interests, she has resigned her OneLogix positions. We thank her for the
valuable contribution over the years and wish her well.
Ashley Basil Ally has been appointed as non-executive director of OneLogix in
Tsakani`s stead, with Debrah Ann Hirschowitz as an alternate director to Ashley.
We remain satisfied that our management teams and staff, undergoing continual
training and skills development, are well-equipped to deliver on strategic and
operational objectives.
We thank our management and employees for their efforts and tenacity which have
driven our success. We further extend our appreciation to our business partners,
customers, suppliers, business advisors and shareholders for their ongoing
invaluable support.
By order of the board
Ian Lourens CEO Geoff Glass Financial Director
21 February 2010
Directors:
SM Pityana (Chairman)*
AB Ally* (Alternate: DA Hirschowitz)
NJ Bester
AC Brooking*
GM Glass (FD)
AJ Grant*#
IK Lourens (CEO)
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
Date: 21/02/2011 08:00:04 Produced by the JSE SENS Department.
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