http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.69Change: -0.02
R/$ = 10.96Change: 0.00
Au 1195.22 $/ozChange: -3.23
Pt 1225.00 $/ozChange: -4.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 10, 2014

Demand for African logistics boosts Super Group’s H1 showing

Back
Photo: Bloomberg
Harare|Africa|Environment|Great Wall Motors|Industrial|Motors|Super Group|Supply Chain South Africa|Africa|Australia|Mauritius|Asset-based Finance Loans|Logistics|Logistics Subsidiary|Mining|Mobility|Motors|Net Finance Costs|Services|Transport|Motors|Motors|Operations|South Africa
|Africa|Environment|Industrial|Motors||Africa||Logistics|Mining|Motors|Services|Transport|Motors|Motors|Operations|
harare|africa-company|environment|great-wall-motors|industrial|motors-company|super-group|supply-chain-south-africa|africa|australia-country|mauritius|asset-based-finance-loans|logistics|logistics-subsidiary|mining|mobility|motors-industry-term|net-finance-costs|services|transport-industry-term|motors-person|motors|operations|south-africa-region
More Insight
© Reuse this



Despite the “highly competitive” trading environment and “strenuous” economic conditions of last year, transport logistics and mobility group Super Group (SG) has posted across-the-board improvements in its performance for the six months ended December 31, citing “robust” logistics demand in Africa, characterised by an increase in north- and south-bound activity.

The JSE-listed group, which lifted revenue by 31.5% to R7.1-billion for the period, attributed this largely to strong performances by the majority of its logistics subsidiary Supply Chain South Africa.

This, it stated in an interim results statement on Monday, was despite the local transport and logistics industry being impacted by underlying factors such as weak consumer spend, challenges faced by the mining sector as well as above-inflation cost increases across the local industrial sectors.

Earnings per share and headline earnings per share for the period under review increased by 24.9% to 121.9c and 26.7% to 120.7c respectively.

Profit before taxation increased by 20.7% to R592-million, largely the result of the improved operational profitability of the group, while a 25.7% growth in operating profit to R651-million was driven by operational efficiencies generated by a “stringent focus” on cost controls within the operations.

However, as a result of the competitive landscape and resultant margin pressure experienced by Supply Chain South Africa's SG Consumer business and the retracted novated-lease market in Australia, the overall operating profit margin declined to 9.1%.

Further, an increase in net finance costs by 116.7% to R59-million related to the annualisation of several acquisitions, an increase in asset-based finance loans and the interest impact of the acquisitions.

The increase in total assets of 12.9% to R11.9-billion was mainly as a result of capital expenditure of R461-million for vehicle purchases for Supply Chain South Africa businesses SG Freight and Super Rent as well as for the African Logistics operations.

SG’s net debt position on December 31 increased to R241-million.

OPERATING BUSINESSES

The majority of Supply Chain South Africa’s businesses delivered a “commendable” performance over the first six months of the year, while subsidiary African Logistics benefitted from improved efficiencies, following the renewal of the fleet and increased cross-border activity.

Improved north- and south-bound activities, as well as additional activity on the Beira-Harare route were experienced.

“The renewed African Logistics' fleet is running at an average capacity of 94%. This, combined with rand weakness over the period, which resulted in a foreign exchange gain of R10.6-million, contributed to a sterling set of results,” the company said.

Meanwhile, dealerships across the group’s portfolio reported good results, reflecting the inclusion of two Great Wall Motors dealerships acquired during the period and a solid performance by the finance and insurance operations.

New vehicle sales increased by 8.2% over the period, which was “well ahead” of market growth, while the group’s services segment, which included corporate functions, Emerald Insurance and the Mauritius operations, performed in line with expectations.

PROSPECTS

The group said on Monday that, while the outlook for the South African economy was subdued, it believed that there were opportunities to expand its core businesses.

“The domestic medium-term note programme will allow the group to diversify its sources of funding, optimise its borrowing costs and facilitate its growth strategy, both organically and through acquisitions in its core divisions,” SG stated.

Supply Chain South Africa would continue to focus on niche opportunities within the food services, retail and pharmaceutical sectors.

Meanwhile, African Logistics remained “strategically positioned” to profit from any increased activity in sub-Saharan Africa and would continue to investigate new opportunities in the region. 

SG did not declare a dividend for the period.

Edited by: Tracy Hancock
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Transport & Logistics News
Updated 2 hours 4 minutes ago While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
Updated 2 hours 4 minutes ago In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
INTEGRATED PUBLIC TRANSPORT GO!Durban will comprise a network of rail, road and nonmotorised transport systems
Updated 2 hours 4 minutes ago The GO!Durban Empowerment Charter, part of Durban’s integrated rapid public transport network (IRPTN), was launched on October 21, by the eThekwini municipality.
More
 
 
Latest News
The Central Energy Fund (CEF) has backtracked on its decision to appoint Tshepo Kgadima as a director and chairperson of national oil company PetroSA following the public “controversy” dogging the new appointee. Nonhlanhla Jiyane had now been appointed as interim...
South Africa’s Finance Minister Nhlanhla Nene
South Africa’s Finance Minister Nhlanhla Nene has emphasised the role of the private sector in delivering the 51 Programme for Infrastructure Development in Africa (Pida) projects, collectively valued at $68-billion, being prioritised for implementation by 2020....
This year, 82 companies met the JSE’s Socially Responsible Index (SRI) requirements relating to environmental, social and governance (ESG) policies and management practices, compared with only 72 companies in 2013, as companies become more aware of how they...
More
 
 
Recent Research Reports
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
Updated 2 hours 13 minutes ago As the City of Ekurhuleni continues its bid to develop the largely industrialised metropole into the continent’s first aerotropolis, executive mayor Mondli Gungubele has committed the city to creating a predictable, stable and enabling business environment in which...
Updated 2 hours 14 minutes ago While Ford Motor Company of Southern Africa (FMCSA) did not have “significant issues” with power supply in Gauteng, it was a different story in the Eastern Cape, said FMCSA and American Chamber of Commerce in South Africa president Jeff Nemeth earlier this month....
Updated 2 hours 14 minutes ago In 2000, exports into Africa from South Africa represented less than 5% of the turnover of Federal Mogul Motorparts Africa, with sales largely centred around Zimbabwe, Zambia, Malawi and Mozambique. Today, African exports represent 30% of sales, with trade expanded...
Updated 2 hours 14 minutes ago The Malawi government has launched a $50-million project to upgrade the Kamuzu barrage, on the Shire river, an outlet of Lake Malawi, which is used to control the flow of water from the lake to the lower Shire area. The project will run from this year to 2017 and...
Updated 2 hours 14 minutes ago   Our new Technical and Vocational Education and Training (TVET) Colleges will replace the Further Education and Training (FET) Colleges which have served us for the past twenty years.  The buildings will be the same and most of the staff will be the same but as the...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks