Super Group looks to offshore growth as SA stagnates


Super Group looks to offshore growth as SA stagnates

Published Date: 2017-08-29 | Source: Stephen Gunnion | Author: Stephen Gunnion

Super Group looks to offshore growth as SA stagnates

The logistics and motor dealership group doesn't expect the local economy to improve this year.

Super Group is seeing the benefits of its geographic and sector diversification, helping it post higher earnings for the year to June despite pressure on the local economy.

A string of acquisitions last year pushed revenue 15% higher to R29.9 billion rand. However, a turnaround at its SG Coal business also boosted the numbers. Super Group now earns 40% of its revenue outside of South Africa and 61% of earnings before interest, tax and amortisation (EBITA). However, the rand's strength last year diluted the effect of its offshore earnings. Core headline earnings per share increased by 7.8% to 332c.

While its UK motor business, Dealerships UK, reported strong results in Pound terms, back home weak new car sales over the past year weighed on its local numbers. Still, Super Group says it outperformed the market following the acquisition of nine Western Cape dealerships. The group's Australian fleet business, which leases vehicles, also made a strong contribution to the results.

CEO Peter Mountford says he expects the local headwinds to prevail for the rest of 2017, with muted growth prospects for the Southern African operations.

Super Group's shares ended the day 3% lower at R39.40.

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