OneLogix poised to pursue further growth – Lourens

LISTED specialised logistics group OneLogix believes the group’s strong financial position and improved broad-based black economic empowerment (BBBEE) accreditation provided an ideal springboard for the pursuit of growth.

Ian Lourens, the chief executive of OneLogix, said yesterday that the group, as always, remained mindful of start-up and acquisitive opportunities and would continue to assess these appropriately. OneLogix in the year to May improved its BBBEE status to Level 2.

Lourens said this, supported by the fact that the group was now 84 percent black-owned and 39 percent black womenowned provided it with a competitive advantage, which should enhance its growth prospects.

At year-end, OneLogix had net cash resources of R124.7 million, while its net debt at R245m was significantly lower than the R365.9m in the previous year.

Lourens said the group’s healthy financial position at year-end, strategic funding structure for assets utilised by the operations and available resources had successfully reinforced a solid platform for the next phase of growth.

Lourens said OneLogix had continued to sustain its growth trajectory in the year to May with another year of ongoing improvement, despite the protracted economic environment.

“The improved performance was further achieved against an accumulated higher base of earnings.

“Earnings growth for the year was entirely organic in nature, once again affirming the strength of the group’s business strategy and the resilient models of the underlying businesses guided by skilled management teams,” he said.

Trading result OneLogix on Wednesday reported a 14 percent increase in headline earnings a share to 33.7 cents in the year to May from 29.6c in the previous year.

Lourens attributed this to an enhanced overall trading result and reduced net finance costs and international financial reporting standards charge.

Revenue rose by 16 percent to R2.3 billion from R1.99bn.

Boosted largely by the R16.8m profit realised on the sale and leaseback of its Umlaas Road facility in KwaZulu-Natal, operating profit increased by 17 percent to R172.9m from R148.1m.

A dividend a share for the year of 11c was declared, which was 15 percent lower than the 13c a dividend declared for the previous year.

Apart from the Umlaas Road facility transaction, OneLogix also disposed of its 49 percent minority stake in DriveRisk for R65.4m and repurchased 5.2 million shares on the open market for a cash consideration of R15.8m.

The group in January also purchased the business Siyaduma Auto Ferriers for R16m, which had been incorporated into OneLogix TruckLogix, completed the vendor-financed sale of 25 percent of Atlas360 for R11.3m to black womenowned AWCA Investment Holdings in April this year through the Fuzitax special purpose vehicle.

Fuzitax simultaneously purchased 60 percent of Cranbourne Panel Beaters and Spray Painters for R4.3m.

After its year-end, OneLogix purchased an additional 40 hectares of property adjacent to the group’s present Umlaas Road facility for R43m.

Lourens said the property was acquired with a view to accommodating market demand and entrenching a strategic advantage.

Shares in OneLogix closed unchanged on the JSE yesterday at 4.40.