JSE-listed logistics company OneLogix on Thursday reported a 4% year-on-year increase in net profit to R48.3-million for the six months ended November 30.
Earnings per share and headline earnings per share (HEPS) declined 17% and 18% respectively during the interim period, owing to an International Financial Reporting Standards (IFRS) 2 share-based payment charge of R6.7-million.

Diluted core HEPS rose 7% year-on-year to 19.6c apiece.

OneLogix noted on Thursday that it continued its more than ten-year uninterrupted trading growth trajectory, despite difficult trading conditions, with revenue increasing 28% to R896.7-million on the back of the maiden contributions from its Jackson, Buffelshoek, Vision and Cryogas Express acquisitions, which contributed to earnings for the last two months of the interim period.

Further, it said that, despite its operating profit having been impacted by the IFRS 2 share-based payment charge relating to employee participation schemes, it still increased 16% from R68.1-million to R79.3-million during the period.

“All businesses performed well and ahead of expectations in some instances,” the group said in a statement.

OneLogix Vehicle Delivery Services (VDS) managed to gain market share, but traded down in line with a contracting and increasingly competitive market.

However, the group pointed out that VDS had benefited from the new OneLogix Logistics Hub, in Cato Ridge. The second phase of the hub was recently completed on schedule.

The group, which did not declare an interim dividend, further reported that cash generated from operations before net finance costs, taxation and dividends increased 26% to R112.9-million.

Meanwhile, OneLogix had invested R132.6-million in operational infrastructure during the six months under review, including R100.6-million in its fleet, R27.3-million in property, R2.8-million in information technology-related assets and R1.9-million for other assets.

“Trading conditions will be difficult for all group companies for the foreseeable future. We will, therefore, focus on ensuring maximum efficiencies from existing businesses and growing market share.

“The group is always mindful of start-up and acquisitive opportunities and will continue to assess these,” the company said.

To further mitigate the tough environment, OneLogix would continue with its strategy to diversify its revenue stream and to move away from its dependence on the vehicle-carrier sector.

“In 2008/9, this accounted for some 80% of the group’s trading profit, it is now down below 40%, with two other clusters – bulk liquid and agriculture – falling in this space,” CEO Ian Lourens said at the group’s results presentation in Johannesburg.

Speaking to Engineering News Online on the issue of Finance Minister Pravin Gordhan’s announcement on Wednesday of a 30c a litre increase in the fuel levy and the introduction of a tyre tax, and what impact these would have on companies such as OneLogix, Lourens pointed out that, as with any logistics company in the country, the costs would be covered downstream.

“When we contract with customers, there is almost always a predetermined element of a price which is dedicated to fuel. This is effectively the rule,” he added.

UMLAAS ROAD
Lourens highlighted that the OneLogix Logistics Hub, located between Durban and Pietermaritzburg, had met expectations.

The first R130-million phase of the 26 ha hub, designed to substantially enhance the group’s ability to offer quality and cost-effective logistics services to its customers, came on stream in January last year, with the R89-million second phase completed in January this year.

The facility now comprised storage facilities for 9 000 vehicles, up from 4 150 last year. The facility also offered 450 m² of office space and a 1 200 m² of workshops.

“The income that we generate from the use of this hub covers all the costs of debt and operating costs, including rates and taxes, insurance and payroll of people at the facility.

“It represents a big step up for us . . . giving us quite a strategic advantage over our competitors, while allowing us to integrate more into the supply-chain management process of our customers,” Lourens said.