OneLogix overcomes road bumps to grow earnings

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OneLogix overcomes road bumps to grow earnings

Published Date: 2019-02-08 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

OneLogix overcomes road bumps to grow earnings

The specialist logistics group says it's well-equipped to both withstand economic headwinds and to exploit emerging opportunities.

OneLogix says the trading environment for logistics groups such as itself has been challenging - and likely to remain so for the foreseeable future. However, it's done well in its niche markets, resulting in strong growth in first-half earnings.

The specialist logistics group has three main divisions: Abnormal Logistics, Primary Product Logistics and Logistics Services. Vehicle Delivery Services (VDS), which transports vehicles around the country and across Southern Africa, exceeded expectations despite a relatively lethargic market, while its TruckLogix business was boosted by a small bolt-on acquisition made last year.

Primary Product Logistics, which includes the movement of goods and liquids, produced a mixed performance, helped by a slightly resurgent cross-border market.

Logistics Services, including truck repair and panel beating unit Atlas 360, continued to perform well, with newly-acquired business Cranbourne Panelbeaters performing ahead of expectations. Clearing and forwarding operation OneLogix Cargo Solutions reported a steady performance, while OneLogix Warehousing delivered an improved performance.

Group revenue grew by 26% to R1.44 billion in the six months to end-November due to increased activity in all its operating segments. Trading profit was up 7% to R108 million as its trading margin declining to 7.5% from 8.9% due to high fuel costs, which had to be recovered in increased billings. Trading profit was also impacted by an R8.5 million charge related to its ongoing skills upliftment programme. It says most of this will be recovered by learnership allowances afforded by SARS.

Earnings per share fell by 35% to 25.4c as the prior comparable period included once-off profits from the disposal of its DriveRisk business and the sale and leaseback of its Umlaas Road properties in KwaZulu-Natal. Headline earnings per share of 25.5% showed a 28% increase, helped by its better trading results and a big reduction in net finance costs. It's declared a 6c per share interim dividend.

The group said it would continue its focus on extracting maximum efficiencies from its existing business to help grow their respective market shares. It will also look up for new start-up and acquisitive opportunities.

Its shares rose 4% to R3.95 yesterday.





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