OneLogix reports lower earnings as volumes decline


OneLogix reports lower earnings as volumes decline

Published Date: 2020-02-07 | Source: Stephen Gunnion | Author: Stephen Gunnion

OneLogix reports lower earnings as volumes decline

The niche logistics group has reported a big drop in cross-border volumes and expects trading conditions to remain tough.

OneLogix has reported a slide in first half profits as business volumes and the rates it charges came under pressure due to the weak economy. However, the specialist logistics group says its 12 businesses have remained profitable despite.

Revenue rose 1% to R1.45 billion in the six months to end-November. Trading profit was down 18% to R103 million, mainly as a result of margin pressure and the reduced cross-border volumes. Operating profit decreased in line with trading profit to R93.5 million. Net finance costs fell 7% to R34.7 million as it continued to pay down interest-bearing debt, leaving earnings per share (EPS) 26% lower at 16.4c. Headline EPS declined by 24% to 17c per share.

OneLogix said it was committed to completing Phase 3 of its Umlaas Road logistics hub, with a tranche becoming operational last month. It expects the full phase to be completed by the end of the year at a cost of R305 million. To date, it has spent R123 million and debt finance of R150 million was secured last month.

During the period the group continued its share repurchase programme and has now acquired 1.5 million of its own shares on the open market for R4.9 million.

It expects trading conditions to remain difficult for the foreseeable future and hasn't declared an interim dividend as it preserves cash due to its commitment to the Umlaas logistics hub and the uncertain market conditions.

Its shares fell 3.2% to R2.70 yesterday in thin trade.

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