Despite ongoing macroeconomic challenges and tough trading conditions in several key markets and industry sectors, transport logistics company Super Group reported that its revenue for the financial year ended June 30 increased by 14% to R39.5-billion and operating profit increased by 44% to R2.3-billion.

The “outstanding set of results”, as the company described them, was complemented by “excellent” net cash generated from operations of R4.8-billion, which was 11% higher than the robust performance of the previous financial year.

Group CEO Peter Mountford on August 30 said the group’s performance was reflective of the decisive and swift actions undertaken by management teams in the early stages of the pandemic to ensure the ongoing relevance and competitiveness of all operations in the face of volatile markets.

“It is also testimony to the group’s strong balance sheet and its rigorous focus on costs, effective cash generation and management of working capital,” he noted.

Businesses across the group performed strongly to achieve this outcome, despite the continuing impact of the Covid-19 pandemic and related lockdowns in many of the economies in which Super Group operates.

The group’s South African, European and UK operations were most severely impacted by lockdown regulations and restricted trading conditions within a number of economic sectors.

“The pandemic has, in many ways, been a wake-up call in terms of the fragility of global supply chains, revealing many long-standing supply and demand related vulnerabilities and risks,” said Mountford.

He added that Covid-19 had “undoubtedly demonstrated that operational reliability and cost efficiencies are the foundations of corporate performance”.

For Super Group, the pandemic necessitated a thorough strategic review of all businesses and the rightsizing of operations to ensure that business models remain relevant to fluctuating levels of demand.

The benefit of these initiatives manifested strongly in the group’s European and South African supply chain businesses. The group’s dealership businesses in South Africa and the UK also demonstrated a significant recovery from the previous year.

SG Fleet announced in March this year that it was acquiring LeasePlan Australia and LeasePlan New Zealand, collectively LeasePlan ANZ, for A$387.4-million, or R4.1-billion.

LeasePlan ANZ is a provider of fleet management and leasing services in Australia and New Zealand to corporate businesses and governments, which complements the SG Fleet business.

LeasePlan ANZ also offers novated leasing services in Australia.

Super Group, through its wholly owned subsidiary Bluefin Investments, which holds 60.13% of the shares in SG Fleet, took up its entire pro rata share under the entitlement offer in April, acquiring more than 21.1-million shares at a price of A$2.45 a share, with a total value of A$51.9-million, or R555.8-million.

Post-period end, on August 23, SG Fleet advised that all conditions precedent to the acquisition had been met.

It is now anticipated that the completion date of the transaction will be September 1. Once the transaction is finalised, Bluefin’s interest in SG Fleet will dilute to 52.30%.  

The past 12 years have seen shareholders’ equity grow from R1.2-billion at June 2009 to the current level of R13.8-billion, which represents a compound annual growth rate of 22.6%.

During this time, financial leverage, represented by interest bearing debt to shareholders funds, declined from 253.0% to 16.8% as at the end of the period.