OneLogix holds dividend as profit declines

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OneLogix holds dividend as profit declines

Published Date: 2020-09-18 | Source: Stephen Gunnion | Author: Stephen Gunnion

OneLogix holds dividend as profit declines

The niche logistics group has laid of 5 percent of its workers as it right-sized its business.

OneLogics Group has reported its first decline in profit in 11 years after Covid-19 added to an already weak economic environment. However, it's pushing ahead with the expansion of its KwaZulu-Natal logistics hub and expects it to be completed on time.

The niche logistics group says it lost R170 million of potential revenue in the last two months of its financial year as the lockdown took affect, while about R35 million was shaved from profit after tax. That included property impairments of R5 million. Following its May year end, it retrenched about 5% of its workforce, mainly in its abnormal logistics segment, at a cost of R8.7 million.

Despite the setback, it said each of its 12 businesses weather the economic storm, with some achieving improved profitability.

Revenue fell 4% to R2.62 billion for the year to end-May constrained by the difficult trading conditions, the impact of the lockdown in April and May, and depressed volumes and rates across its businesses, with a big drop in cross border volumes. Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 12% to R350 million. Headline earnings per share (HEPS) came in 46% lower at 17.1c while core HEPS was down 42% at 22.2c. It hasn't declared a dividend so it can hold onto cash given the prevailing economic circumstances.

OneLogix said it expected phase 3 of its Umlaas Road logistics hub to be completed by the end of the calendar year at an estimated total cost of R310 million. The hub, next the the N3 Gauteng-Durban corridor, will have parking bays for 20,000 light vehicles, 2,000 trucks and agricultural equipment. It's aimed at integrating its business with customers' supply chains.

The company's shares closed unchanged at R2 in light trade yesterday.





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