This year was an eventful one for us, having concluded a number of significant acquisitions, as well as the sale of PostNet. We also introduced a new empowerment partner, Kagiso Capital, and put a staff share participation scheme in place,” said OneLogix CEO Ian Lourens in his presentation of the group’s financial results for the year ended May 31.
“We have basically consolidated the beast for future growth. We believe this will be the start of quite a substantial growth phase.”
Revenue from continuing operations increased by 8% for the year under review to R1.37-billion, while trading profit increased by 15% to R125.1-million.
Operating profit was adversely impacted on by two one-off items, and declined from R118.6-million in the previous financial year to R48.7-million.
Subsequent to the disposal of PostNet in December for R190.6-million, OneLogix, as a niche logistics service provider, was now structured into three businesses, namely Abnormal Logistics, Primary Product Logistics and Other Logistics Services.
Abnormal Logistics contributed 66% of revenue from continuing operations and 70% of trading profit.
Within this business, Vehicle Delivery Services (VDS) completed the first phase of a storage and general utility facility in KwaZulu-Natal, known as the OneLogix Logistics Hub, at a cost of R135-million. The second phase of development will be completed by the middle of the current financial year at a cost of R85-million.
The Primary Product Logistics business contributed 26% of total revenue from continuing operations and 26% of trading profit, while the remaining OneLogix business, Other Logistics Services, contributed 8% of revenue and 4% of trading profit.
Around 18% of the company’s revenue came from the rest of Africa.
As announced in 2014, OneLogix shareholders approved the implementation of two share participation schemes.
The employee share participation transaction saw eligible employees obtain a 10% indirect shareholding in OneLogix, while the management share participation transaction saw management and executive directors obtain a 5% indirect shareholding in OneLogix.
These participation schemes were implemented during January and February 2015, with rights vesting in 2020.
Also, as ratified by shareholders on January 20, OneLogix issued Kagiso Capital, a wholly-owned subsidiary of the Kagiso Charitable Trust, 28-million OneLogix ordinary shares at R3.60 a share for an aggregate amount of
R101.1-million.
This transaction revived black ownership in the group, given the divestment of former empowerment partner Izingwe.
Direct black shareholding now stood at 19%, said OneLogix FD Geoff Glass.
OneLogix spent around R300-million on fuel in the past financial year, and R400-million on staff.
The Gauteng etolls bill for VDS was roughly R120 000 a month.
Acquisitions
OneLogix in February bought a 74% interest in four specialised logistics companies (known as ‘Jackson and Buffelshoek’), for R106-million.
The companies transported refrigerated fresh produce and industrial food in Southern Africa.
The transaction reflected OneLogix’s strategy to reduce its dependence on autologistics activities, said Lourens.
The VDS business made up 80% of profit seven years ago, dropping to below 40% in the past financial year, with this figure probably less than 30% in the current financial year, he added.
Post financial-year end, effective June 21, OneLogix also acquired 74.2% of Cryogas Express for R5.5-million.
On July 22, OneLogix also announced the purchase of Vision Transport for R110-million, subject to approval by the Competition Commission. Vision was a Gauteng-based logistics company active in the solvents and acids markets in Southern Africa.
Looking ahead, Lourens said OneLogix would continue to grow its existing businesses, establish in-house start-ups where appropriate and seek out more suitable niche transport acquisitions.