| Tue 21 Aug 2001, 0:00 | | Onelogi X- Audited Consolidated Financial Results |
|
2001
OneLogix Group Limited
(formerly VENMIL LIMITED)
(Registration number 1998/004519/06)
("OneLogix" or "the group")
Share Code: OLG
ISIN Code: ZAE0000263399
Highlights
* Headline EPS in line with forecast
* Successful integration of acquired businesses
* Successfully converted cash shell into fully operational supply chain
logistics group
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MAY 2001
Income statements
Twelve months Nine months
ended ended
31 May 2001 31 May 2000
R'000 R'000
Revenue 134 565 -
Operating income/(loss)
before depreciation 7 737 (727)
Depreciation 1 490 -
Operating income 6 247 (727)
Net interest received 9 862 9 968
Income before taxation 16 109 9 241
Taxation 2 466 2 864
Headline earnings 13 643 6 377
Share trust write-down 646 -
Amortisation of goodwill 3 538 -
Profit on sale of subsidiary 83 -
Attributable income 9 542 6 377
Number of shares in issue ('000) 194 812 180 942
Headline earnings per share (cents) 7,0 3,5
Earnings per share (cents) 4,9 3,5
Condensed cash flow statements
Twelve months Nine months
ended ended
31 May 2001 31 May 2000
R'000 R'000
Net cash utilised in operations (1 953) 6 694
Net cash flow from investing activities (45 991) (5 110)
Net cash flow from financing activities 176 (252)
Net (decrease)/increase in
cash resources (47 768) 1 332
Cash resources at beginning of period 122 186 120 854
Cash resources at end of year 74 418 122 186
Notes:
1. These audited results have been compiled in accordance with South African
Statements of Generally Accepted Accounting Practice.
2. In order to comply with revised GAAP statements, the group has changed
its accounting policy for goodwill. Whereas goodwill was previously written-
off against share premium, it is now capitalised and amortised over its
useful life in terms of AC 131.
3. The directors are of the opinion that an adequate number of shares have
been procured to settle any shares to be issued in terms of the
acquisitions. Accordingly, there is currently no potential dilution of
earnings per share.
Balance sheets
31 May 2001 31 May 2000
R'000 R'000
Assets
Non-current assets 60 719 4 626
Fixed assets 6 397 3 414
Intangible assets 50 595 123
Other assets 1 164 -
Deferred taxation 2 563 1 089
Current assets 120 290 135 417
Inventories 793 106
Trade and other receivables 37 458 10 045
Taxation 111 -
Cash and cash equivalents 81 928 125 266
Total assets 181 009 140 043
Equity and liabilities
Capital and reserves
Ordinary shareholders' funds 100 719 87 971
liabilities
Non-current liabilities 7 315 5 798
Interest bearing borrowings 4 315 298
Vendor liabilities 3 000 5 500
Current liabilities 72 975 46 274
Trade and other payables 23 774 14 820
Vendor liabilities 40 948 24 950
Current portion of interest
bearing borrowings 743 220
Taxation - 3 204
Bank overdraft 7 510 3 080
Total equity and liabilities 181 009 140 043
Number of shares in issue ('000) 194 812 180 942
Net asset value per share (cents) 51,7 48,6
Net tangible asset value
per share (cents) 25,7 48,6
Condensed statement of changes in equity
Twelve months Nine months
ended ended
31 May 2001 31 May 2000
R'000 R'000
Opening equity 87 971 117 919
Shares issued and to be issued
less costs (117) 99 422
Adjustment to goodwill write-off 3 323 (135 747)
Attributable income 9 542 6 377
Closing equity 100 719 87 971
COMMENTS
* INTRODUCTION
The directors of OneLogix are pleased to announce the maiden audited results
for the year ended 31 May 2001. In the year under review the group has
successfully transformed from a cash shell into a fully operational supply
chain logistics fulfilment group, whilst meeting its forecast headline
earnings per share (HEPS) of 7 cents.
With effect from 31 May 2000 Venmil Limited acquired the entire
shareholders' interest in OneLogix (Pty) Limited following which, on 11
September 2000, the listing of its shares was transferred from the
"Financial Investment Trust" sector to the Industrial-"Services" sector of
the JSE Securities Exchange South Africa ("JSE") lists. Venmil Limited was
formally renamed OneLogix Group Limited.
The announcement of these results was deferred in accordance with the JSE
Listings Requirements which prohibit a company from publishing financial
results for a period of 40 business days following the completion of a share
repurchase.
* Profile
OneLogix provides comprehensive supply chain management and logistics
fulfilment services through four integrated business pillars:
* ThinkLogix provides strategic consulting and planning around logistics
fulfilment supported by IT enablement solutions;
* GoLogix offers traditional third party logistics services ranging from
express delivery through freight distribution to mail management;
* DotLogix services the logistics fulfilment requirements of b2b and b2c
electronic commerce and houses BizzNet, a small to medium enterprises (SME)
Internet portal; and
* DirectLogix provides logistics and business services direct to the
consumer through the nation-wide PostNet counter network.
During the year under review OneLogix entered into strategic equal partner
joint ventures with the IQ Business Group, South Africa's largest private
information technology group, to implement IT logistics solutions; Francotyp
Postalia SA, the South African operation of Europe's leading mailroom
technology supplier, to manage mailroom administration; and Independent
Newspaper's online division Independent Online, to develop BizzNet into a
leading SME directory.
* Overview
The group operates from 25 sites throughout sub-Saharan Africa and controls
the PostNet retail counter network of more than 207 stores that is second
only to the SA Post Office. A managed fleet of 575 vehicles underpins the
group's logistics capability, while avoiding the balance sheet burden of
assets and debt typical of traditional transport companies.
The group's servicing of e-businesses such as flySAA.com during the year
under review, reflects its distinctive capability of integrating physical
delivery with sound e-commerce expertise.
In addition OneLogix successfully launched its PostNet-to-PostNet courier
product, which for the first time offers consumers a cost-effective courier
alternative.
In total the group services more than 2 000 high-profile SA corporates
including SAA; Edgars; Megashopper; Johnson & Johnson; Toyota; Ford and
Plascon. OneLogix is also business partner to around 30 000 SMEs,
interacting daily on-line and providing their essential day-to-day business
services including courier and distribution.
* Acquisitions
During the year under review the group acquired the business of Vehicle
Delivery Services (Pty) Ltd ("VDS"), the sub-Saharan leader in auto
logistics that transports vehicles and trucks from SA to all major southern
African cities. Its in-depth knowledge of, and entrenched relationships in,
the vehicle transport industry make VDS this market's dominant player.
OneLogix also entered into an ongoing customer referral agreement with one
of SA's largest private domestic and international parcel distributors, Pro-
Freight Express (Pty) Ltd. The growing 500-strong customer base increased
the volume of business serviced by the group's existing infrastructure with
no concomitant investment in assets or increase in debt.
* Segmental Analysis
Revenue Operating profit
Logistics 88% 59%
Services 12% 41%
* Financial Results
OneLogix maiden audited results for the year ended 31 May 2001 reflect
revenue in line with expectations and HEPS of 7 cents meeting the forecast.
In spite of difficult economic conditions the group has achieved its
forecast, while at the same time successfully launching its start-up
business units and consolidating its end-to-end supply chain logistics
fulfilment operation.
As this was the first year of operation as an integrated group,
comparison with the income statement for the previous year ended 31 May 2000
is inappropriate.
* Post-balance sheet events
Pro-rata share repurchase
Effective 20 June 2001, OneLogix repurchased 67 500 000 OneLogix ordinary
shares from shareholders at a price of 80 cents per share. A total of R54
million was paid to shareholders. Although the resultant reduction of
interest income may reduce short-term earnings, it is anticipated that the
share buy-back will enhance earnings per share in the medium to long term.
Attention is directed to the circular dated 4 May 2001.
* Prospects
Sustained organic growth is projected for the group. Its more established
businesses will continue to generate sustainable revenue and earnings
streams, while its younger start-ups will drive bottom-line growth going
forward. In addition OneLogix will continue to grow acquisitively both to
enhance strategically its range of services and to improve its critical mass
in existing services.
Management expects the group's dedication to service excellence and focused
business strategy to yield positive revenue and operating growth in the year
ahead.
* People
OneLogix thanks its management, employees, PostNet franchisees and business
partners for their perseverance and hard work throughout this past year. The
group also thanks its business advisers for their invaluable input and its
shareholders and customers for their continued support.
* Dividend
In line with group policy no dividend has been declared for the year under
review.
By order of the Board
Tony Wiese (CEO) Danie Meyer (Financial Director)
22 August 2001
thinklogix IQlogix gologix FPlogix VDS dotlogix Bizznet
Postnet
Directors: Tony Wiese (Chief Executive Officer); Peter Forshaw; Alec Grant*;
Benjamin Liebmann*; Ian Lourens; Danie Meyer (Financial Director);
Joe Modibane* (* Non-executive)
Registered office: 4 Struwig Street, Jet Park (PO Box 14410, Witfield 1467)
Transfer secretaries: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg 2001 (PO Box 1053, Johannesburg 2000)
Company secretary: Probity Business Services (Pty) Ltd, Unit C1,
The Guild Office Park, 2 Guild Road, Parktown
(PO Box 85392, Emmarentia 2029)
