Despite having faced numerous challenges during the six months to November 30, JSE-listed logistics group OneLogix grew its revenue by 9% to R703-million.
Headline earnings per share (HEPS) and earnings per share (EPS) rose 14% from 17.6c to 20c, owing to fewer shares being in issue during the interim period under review.

The group’s net finance costs increased by 52% year-on-year from R8.2-million to R12.5-million owing to  increased investment in its fleet, as well as the reduced cash on hand from the funding of the specific share repurchase from Izingwe Holdings for R60.8-million in December 2013.

Further, the group reported that cash flows from operations increased by 11% to R70.1-million, as a result of ongoing focus on working capital management and the demonstrated capability of the group to translate profits into cash. 

At a presentation of OneLogix’s interim results in Rosebank, CEO Ian Lourens noted that he would have preferred the results to be better, “but looking at our competitors, it could have been a lot worse,” he quipped.

In the six months under review, the group invested R213.4-million in operational infrastructure, which included R125.7-million in property, R83-million in fleet – of which R68.8-million related to expansionary spend – R2.5-million in information technology-related assets and R2.2-million in other assets.

Meanwhile, the group noted that its specialised logistics business segment, which was also its largest division, was earmarked as a growth opportunity.

“The group strategy remains unchanged – to continue to grow existing businesses, establish in-house start-ups where aligned new opportunities arise and to seek appropriate acquisitions.

Although describred as “mature”, Onelogix Vehicle Delivery Services (VDS) remained an important component within the group, as it continued to “exceed expectations”, despite difficult trading conditions.

“Its strong and  motivated management team has mastered a complex business model, and continues to focus  on business opportunities and improving operational efficiencies,” the group noted.

Further, OneLogix’s Commercial Vehicle Delivery Services (CVDS) also performed “beyond expectations in a relatively quiet market”.

“Marginal market share growth was complemented by increased revenue from storage. CVDS maintained its exceptional delivery standards record of nearly 100% on-time deliveries,” OneLogix said.

The group’s other segments, which included United Bulk, Projex, Cargo Solutions and Linehaul, also performed strongly during the six months to November 2014.

ACQUISITIONS
OneLogix concluded a number of acquisitions during the six months. It acquired an additional 10% stake in Projex, a significant player in the Durban harbour freight logistics market, for R3.75-million in cash and 1.07-million OneLogix shares – raising its interest to 90%.

The group also acquired the remaining 25% interest in CVDS it did not already own for R14.25-million.

Further, it bought an additional 14% stake in United Bulk for R13-million worth of OneLogix shares. OneLogix now owned 74% of United Bulk.

The group also fulfilled a contingent payment condition in terms of the  original purchase agreement with DriveRisk, as well as acquired a further 9% interest in DriveRisk for R11-million, raising its stake in the company to 49%.

Meanwhile, in early December, the group disposed of its entire shareholding in PostNet Holdings to UK company Aramex for R190.6-million.

Despite its strong performance in the second half of the year, owing to the postal strike, “it was becoming increasingly clear that the skills required to optimise the growth of PostNet were becoming removed from the evolving core competencies of the group,” OneLogix said.

The group believed that this posed risks to PostNet and OneLogix and the sale was deemed to be in the best interests of all parties.

OneLogix declared interim gross dividends of 6.8c and 8c, amounting to R22.5-million, for dividend tax shareholders and dividend tax exempt shareholders respectively.

UMLAAS ROAD
Lourens noted that the company brought its biggest project for 2014 – Umlaas Road development, near Cato Ridge, in KwaZulu-Natal – on stream. The R130-million project was completed on time and within budget.

The 14 ha facility served as a vehicle storage facility for 5 000 vehicles for OneLogix VDS. It also offered additional facilities to be used by all group companies.

The development provided 400 parking spaces for trucks, a 100 000 ℓ fuel facility, a 1 000 m2 eight-bay washing facility, offices, driver accomodation and a predelivery inspection area.

“Being just off the N3 highway, [this development] is logistically very efficient. It has been so succesful in gathering clients that we are looking [at] the option [of developing] another 10 ha,” Lourens noted.