Logistics group OneLogix has, for the six-month period ended November 30, reaped the benefit of recent acquisitions and property infrastructure developments.
The group reported a 12% increase in revenue, compared with the same period in 2015, to more than R1-billion. The jump came as a result of contributions from new acquisitions Vision and Cryogas Express.
Organic revenue growth was marginal, owing to poor market conditions.
Operating profit increased by 4% to R82.7-million, “not withstanding very difficult trading conditions”.
The company said it had also worked to mitigate earnings concentration risk by spreading earnings reliance more evenly across the group’s logistics market segments.
The group invested R134-million in operational infrastructure, including the spending of R115.5-million on fleet replacement and expansion, and R14.4-million on property.
“New investments in properties, acquisitions and fleet have substantially increased the size of OneLogix’s operations,” said the company.
Within the Abnormal Logistics division, OneLogix Vehicle Delivery Services saw a one-off charge of R4.4-million relating to retrenchment costs as the result of a third year of successive decline in the autologistics market.
OneLogix Projex managed to gain market share. The business’s value proposition was strengthened by the recent merger with Madison and the relocation of the Gauteng depot to the group’s new Denne road facility, in Brakpan.
Within the Primary Product Logistics division, OneLogix United Bulk also secured market share wins in its various liquid bulk market segments. This is attributable to continued investment in fleet, as well as a management team that has taken advantage of synergies resulting from the acquisitions of Vision and Cryogas Express.
OneLogix Linehaul started the year in a lethargic market, particularly in Zambia, compounded by border bottlenecks and an appreciating rand.
Recent initiatives, which included further investment in fleet and the relocation to more efficient premises at the group’s Denne road facility, together with the improved copper price, boded well for future performance, noted the company.
Jackson retained its market share despite the impact of the drought. The logistics business is active in the agriculture market in South and Southern Africa.
A large portion of cargo moved by Jackson is export orientated.
Buffelshoek also performed satisfactorily. The lingering effects of the severe drought in its established agricultural niche were offset by a profitable entry into the industrial mineral market, noted OneLogix.
Within the Logistics Services division, Atlas 360 produced a turnaround by refocusing on its leadership position in truck repairs.