The good performance of JSE-listed logistics firm OneLogix’s new acquisitions and start-up companies highlight the group’s significant managerial capabilities and the entrepreneurial flair that the group aims to retain in each, says OneLogix CEO Ian Lourens.

Revenue increased by 25% for its year ended May to R1.3-billion, trading profit increased by 33% to R123.3-million, with margins increasing to 9.5% and headline earnings per share increasing by 24% to 31.2 c a share.

Liquid carrier United Bulk, acquired in December 2012, traded well during the year and contributed to the full-year earnings for the first time. The company is well positioned to continue growing steadily by targeting relevant market sectors and its fleet expansion programme is yielding results, adds Lourens.

Further, OneLogix’s 75%-owned start-up cross-border commodities and freight company OneLogix Linehaul contributed to the latter half of the group’s full-year financial results and has been profitable since its inception in November last year. It has a good reputation and has an increasing customer base, which bodes well for its continued contribution to group profit.

Further, in May, the group acquired 69.5% of import and export warehousing company Andre Niemand, which it will rebrand as OneLogix Projex Cargo Solutions. It was acquired for its substantial storage, loading, off-loading and railway siding capabilities that will be used to enhance the group’s harbour and freight company OneLogix Projex.

The group’s investments and acquisitions during the year were focused on improving its long-term sustainability and growth, with acquisitions made to improve people, skills, fleets and its information technology infrastructure.

However, the group increased its net finance costs by 55% to R20.2-million, as a result of the group’s increased investment in fleet expansion and the reduced cash on hand, owing to the significant acquisitions made during the year and the Izingwe share buy-back in December last year.

This has prompted the group not to declare a final dividend, but it will reassess its dividend at the first half-year of the 2014/15 financial period.

Meanwhile, the group has bought a tract of land between Pietermaritzburg and Durban for R69.2-million to develop an income-generating storage facility for its flagship VDS company. The land will also be used for groupwide facilities, including offices, workshops, fuel tanks, driver accommodation and truck parking areas.

“This will ensure more efficient logistics practices and generally provide a strategic competitive advantage for the participating group companies,” he notes.