| Tue 25 Feb 2003, 17:26 | | OneLogix Group Limited - Unaudited Interim Results |
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November 2002
OneLogix Group Limited
(Registration number 1998/004519/06)
Share code OLG ISIN ZAE000026399
SALIENT FEATURES
- Continuing focus on niche, high margin, cash generating businesses
- Closure of loss-making divisions complete
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2002
CONDENSED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
30 Nov 2002 30 Nov 2001 31 May 2002
R`000 R`000 R`000
Revenue 30 551 31 692 62 470
Earnings before interest, taxation,
depreciation, amortisation (Ebitda) 8 191 11 178 18 263
Depreciation 1 627 297 1 092
Operating profit 6 564 10 881 17 171
Amortisation of goodwill 1 541 1 567 3 135
Net interest paid/(received) 2 175 (64) 633
Exceptional items 3 252 202 4 590
(Loss)/Profit before taxation (404) 9 176 8 813
Taxation 1 283 3 283 5 273
Net (loss)/profit from continuing
operations (1 687) 5 893 3 540
Loss from discontinuing operations 4 505 2 127 10 115
Loss arising on discontinuance
of operations 4 198 589 5 041
Impairment and amortisation of
goodwill on discontinuing operations - 1 007 20 264
Net (loss)/profit attributable
to shareholders (10 390) 2 170 (31 880)
Number of shares in issue(000):
- Total 180 374 128 283 138 711
- Weighted 178 452 134 968 180 750
- Diluted 178 452 165 568 180 750
Headline earnings per share from
continuing operations (cents)
- Basic 1,7 5,7 6,2
- Diluted 1,7 4,6 6,2
Headline (loss)/earnings per share (cents)
- Basic (0,8) 4,1 0,6
- Diluted (0,8) 3,3 0,6
(Loss)/Earnings per share from continuing
operations (cents)
- Basic (0,9) 4,4 2,0
- Diluted (0,9) 3,6 2,0
(Loss)/Earnings per share (cents)
- Basic (5,8) 1,6 (17,6)
- Diluted (5,8) 1,3 (17,6)
Calculation of headline earnings
Net (loss)/profit attributable
to shareholders (10 390) 2 170 (31 880)
Adjusted for:
Amortisation of goodwill 1 541 1 567 3 135
Exceptional items 3 252 202 4 590
Loss arising on discontinuance
of operations 4 198 589 5 041
Impairment and amortisation of
goodwill on discontinuing operations - 1 007 20 264
Headline earnings (1 399) 5 535 1 150
Loss from discontinuing operations 4 505 2 127 10 115
Headline earnings from continuing
operations 3 106 7 662 11 265
Analysis of exceptional items
Share trust write-down 752 202 413
Asset impairments and write-offs 2 500 - 4 177
3 252 202 4 590
SEGMENTAL REPORTING
Revenue
Continuing operations
Logistics 24 466 25 081 49 314
Services 6 085 6 611 13 156
Corporate - - -
30 551 31 692 62 470
Discontinuing operations
Parcel distribution - 57 213 70 224
Gologix Courier 12 942 12 838 26 179
Technology and other services - 1 039 926
12 942 71 090 97 329
EBITDA
Continuing operations
Logistics 7 614 9 690 17 403
Services 1 738 2 750 4 963
Corporate (1 161) (1 262) (4 103)
8 191 11 178 18 263
Discontinuing operations
Parcel distribution - 721 (4 414)
Gologix Courier (6 273) (2 108) (6 038)
Technology and other services - (745) (2 175)
(6 273) (2 132) (12 627)
Commitments
Operating lease commitments
(not exceeding five years) 4 360 13 080 11 580
Contingencies
Onelogix continues to guarantee certain of the asset-based operating lease
commitments on behalf of X Press Net (Pty) Ltd, its former parcel distribution
business amounting to approximately R12,6 million (not exceeding five years).
Certain securities and sureties are in place to offset any such contingencies
which may arise.
Notes
1. The results are prepared in accordance and comply with South African
Statements of Generally Accepted Accounting Practice.
2. The accounting policies used in the preparation of the financial results are
consistent with those adopted in the annual financial statements for the year
ended 31 May 2002.
CONDENSED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
30 Nov 2002 30 Nov 2001 31 May 2002
R`000 R`000 R`000
ASSETS
Non-current assets 51 806 61 049 50 696
Property, plant and equipment 14 167 10 620 7 870
Intangible assets 23 885 47 387 27 388
Other assets 7 859 1 125 12 533
Deferred tax 5 895 1 917 2 905
Current assets 20 098 64 925 30 570
Trade and other receivables 18 453 57 538 22 645
Cash resources 1 645 7 387 7 925
Total assets 71 904 125 974 81 266
EQUITY AND LIABILITIES
Equity
Ordinary shareholders` funds 27 790 57 540 38 180
Liabilities
Non-current liabilities 15 029 5 137 13 935
Interest-bearing borrowings 8 329 5 137 5 679
Vendor liabilities 6 700 - 8 256
Current liabilities 29 085 63 297 29 151
Trade and other payables 13 646 25 501 10 138
Interest-bearing borrowings 7 177 - 2 176
Vendor liabilities 2 664 26 950 1 785
Taxation 1 012 2 610 606
Bank overdraft 4 586 8 236 14 446
Total equity and liabilities 71 904 125 974 81 266
Net asset value per share (cents) 15,4 44,9 27,5
Net tangible asset value
per share (cents) 2,2 7,9 7,8
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
30 Nov 2002 30 Nov 2001 31 May 2002
R`000 R`000 R`000
Opening equity 38 180 100 719 100 719
New shares issued less costs
(including the issue of treasury shares) - 971 9 119
Shares issued to vendor - - 7 000
Adjustment to goodwill previously
written-off against share premium - 8 065 7 607
Shares repurchased including costs - (54 385) (54 385)
Net (loss)/profit (10 390) 2 170 (31 880)
Closing equity 27 790 57 540 38 180
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
Six months Six months Twelve months
ended ended ended
30 Nov 2002 30 Nov 2001 31 May 2002
R`000 R`000 R`000
Net cash (utilised)/generated in operations (981) (8 575) 918
Net cash flows from investing activities (1 710) (13 129) (34 315)
Net cash flows from financing activities 6 271 (53 563) (47 542)
Net increase/(decrease) in cash resources 3 580 (75 267) (80 939)
Cash resources at beginning of period (6 521) 74 418 74 418
Cash resources at end of period (2 941) (849) (6 521)
COMMENTS
INTRODUCTION
The directors of OneLogix Group Limited ("OneLogix" or "the group") present the
unaudited interim results for the six-month period ended 30 November 2002 ("the
interim period").
In accordance with the profit warning dated 6 December 2002 ("the
announcement") the poor performance of GoLogix Couriers combined with a general
slow-down in trading across the group has resulted in a decline in earnings and
headline earnings per share from the previous comparative period. As further
detailed in the announcement OneLogix has closed the GoLogix Courier division
("the closed division") with effect from 30 November 2002.
The directors have resolved to raise R10 000 000 by way of a renounceable
rights offer in order to improve net asset value, repay interest-bearing debt
and discharge vendor obligations. Details of the offer are set out in the
announcement.
REVIEW OF OPERATIONS
Although performances from Vehicle Delivery Services ("VDS") and GoLogix Media
Express have been slower, these businesses continue to dominate their respective
markets of auto-logistics and express distribution of print material. PostNet`s
successful nationwide network continues to offer distinctive business and
communication service solutions to an entrenched and expanding customer base.
Financial Results
OneLogix financial results for the interim period reflect a 4% decline in
revenue from continuing operations to R30,5 million and a 27% decrease in EBITDA
to R8,2 million, resulting in a 40% decrease in operating income to R6,6
million.
The total after tax losses in respect of the closed division amounted to R8,7
million.
Interest paid increased to R2,2 million as a result of interest-bearing debt
incurred to expand the VDS fleet, finance the closures and disposals of loss-
making businesses to date and pay vendor liabilities, exacerbated by the
increase in interest rates.
Exceptional items of R3,3 million relate primarily to the write-down of the X
Press Net (Pty) Ltd loan arising on the sale of the GoLogix Distribution
business.
The directors believe that continued focus on working capital management, the
successful rights issue and future profits will ensure that the imbalance
between OneLogix`s current assets and current liabilities will be reversed in
the short term.
Prospects
The group will concentrate on consolidating its leading niche, high margin, cash
generating businesses. The closure and disposal of all loss-making businesses
and divisions, together with the impending rights issue, will position the group
to deliver sound growth going forward.
People
Ian Lourens, formerly OneLogix Chief Operating Officer, has been appointed as
Chief Executive Officer with effect from 1 October 2002 following Tony Wiese`s
relocation to Australia. Tony Wiese remains a non-executive director of
OneLogix.
OneLogix thanks its management, employees, PostNet franchisees and business
partners for their persistence and commitment. The group also thanks its
business advisors, and its shareholders and customers for their invaluable
support and faith in the group.
Interim Dividend
In line with group policy no dividend has been declared for the interim period.
By order of the Board.
Ian Lourens (CEO) Cameron Mc Culloch (FD)
25 February 2003
Directors: Ian Lourens (Chief Executive Officer); Cameron Mc Culloch (Financial
Director); Neville Bester; Alec Grant*; Benjamin Liebmann*; Joe Modibane* Tony
Wiese* *Non-executive director
Registered office: C/o Probity Business Services (Pty) Ltd,
Unit C1, The Guild Office Park,
2 Guild Road, Parktown
(PO Box 85392, Emmarentia 2029)
Transfer secretaries: Computershare Investor Services Ltd,
70 Marshall 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)
Date: 25/02/2003 05:15:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
