OneLogix: Logistics company expecting profit boost |

LISTED specialised logistics group OneLogix anticipates the R280 million extension of its Umlaas Road vehicle storage facility would improve both the group’s revenue and profitability.

Ian Lourens, chief executive of OneLogix, said yesterday that they were starting with the earthworks on the site, with the facility expected to be completed in June or July next year.

However, Lourens said the facility would be developed on a phased basis and therefore start generating income in a phased manner from about July.

Lourens said it would have huge facilities for storing vehicles and add 1 100 bays to the about 8 500 bays in the existing facility.

He said there would also be facil- ities in the extension for TruckLogix to store trucks and a fitment centre for pre-delivery inspection type work.

Lourens added that Durban-based OneLogix Projects would also have a fitment centre for agricultural equipment for the re-assembly of imported equipment plus some storage facilities.

He said the extension would also provide additional fuel facilities and driver accommodation that would be used by the entire group.

Lourens said OneLogix Vehicle Delivery Services, OneLogix TruckLogix and OneLogix Projects, the three businesses in the group’s abnormal logistics division, would all benefit from the extension of the Umlaas Road facility.

He said there would be minimal space capacity once the extension to the facility was completed.

The abnormal logistics division grew revenue by 29 percent to R703 million in the six months to November, compared to the prior period, while operating profit improved by 20 percent to R801.3m in the same period, despite new vehicle sales declining last year.

Lourens attributed this to growth in four areas.

They were its market share growth in the domestic market, cross border growth in countries such as Zimbabwe, Zambia, the Democratic Republic of Congo and Malawi, the increased storage of vehicles in a sluggish domestic market and from the growth in vehicle exports.

OneLogix yesterday reported a 28 percent growth in headline earnings a share to 25.5 cents in the six months to November from 20c in the prior period.

Revenue rose by 26 percent to R1.4bn from R1.1bn on the back of increased activity in all group operating segments.

Operating profit, excluding capital items, increased in line with trading profit by 7.5 percent to R103.4m from R96.2m.

An unchanged dividend a share of 6c was declared.

Lourens said about two-thirds of the group’s growth was organic, with the balance made up of two small acquisitions and the increased fuel spend recovery in the top line of about R80m from the increase in the average fuel price.

Lourens said going forward the group remained mindful of start-up and acquisitive opportunities, but said that there were not any extraordinary start-up or acquisition opportunities they were currently working on.

Shares in OneLogix rose 3.95 percent yesterday on the JSE to close at R3.95.