De­liv­er­ing most of the goods in­vestors or­dered

Financial Mail - Investors Monthly - - Analysis -

or a grow­ing num­ber of com­pa­nies, ramp­ing up off­shore earn­ings has be­come a high pri­or­ity. It is a goal Su­per Group is achiev­ing in fine style.

Su­per Group had a head start, de­riv­ing 40% of its pre­tax profit off­shore in the six months to De­cem­ber 2014 through its long-held 53% stake in listed Aus­tralian fleet man­age­ment com­pany SG Fleet. A fur­ther 4% of pre­tax profit came from its Mau­ri­tian in­sur­ance op­er­a­tion.

The for­eign con­tri­bu­tion is set to rise sharply. Thanks to two ac­qui­si­tions, it will in­crease to over 60% of pre­tax profit in Su­per Group’s year to June 2016.

FThe first ac­qui­si­tion came in late 2014 when Su­per Group snapped up Allen Ford, the num­ber two in­de­pen­dent Ford dealer net­work in the UK, for £33m (then about R600m).

Ac­qui­si­tion of Allen Ford brought with it 13 fran­chised Ford mo­tor deal­er­ships and two Kia deal­er­ships. In a full year Allen Ford will con­trib­ute 14% of group pre­tax profit, says Su­per Group CE Peter Mount­ford.

A far big­ger ac­qui­si­tion was added last month when Su­per Group bought a 75% stake in Ger­man spe­cial­ist lo­gis­tics firm In Time Ex­press Lo­gis­tik for €137m (R1,9bn) from pri­vate eq­uity firm

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.