Profit drop just a blip — OneLogix

Logistics service provider OneLogix expects profit growth in the second half of the year on the back of new contracts.

Logistics service provider OneLogix expects profit growth in the second half of the year on the back of new contracts.

The group reported revenue of R1.44bn, up 26% because of the “uptick in activity in all operating segments”.

But total profit fell 33% to R70.5m compared with the six months to November 2017.

CEO Ian Lourens said he expected total profit for the six months to May 2019 to show growth again, as the company has contracts in place in the rest of Southern Africa that will help it to grow returns. “We are really happy with what we have pulled off in this reporting period. I believe you could say our team is able to steer a ship in very windy conditions. We have those here with very little economic growth,” Lourens said.

“Even though I think these are strong results, I believe we can do better in the second half of our financial year.”

Headline earnings per share rose 28%, while its net asset value per share rose 22%. Profit before tax, excluding capital items, increased 27% to R90.2m on the back of higher trading profits and a significant reduction in net financing costs.

“This is most definitely attributable to the strength of our business strategy and the resilient individual business models we have, supported by our entrepreneurial culture.”