Johannesburg - Logistics company OneLogix says it has halted paying dividends given its recent deals and the difficult trading environment.
In the year to May, OneLogix said revenue gained 30 percent to R1.78 billion, but its trading profit was only up 21 percent to R151 million and core headline earnings per share from continuing operations only gained 5 percent to 34.6c.
OneLogix explains trading margins from continuing operations declined to 8.5 percent from 9.1 percent. It said trading profit was adversely affected by a R16 million charge relating to the its skills upliftment programme.
This had to be escalated in line with the recently promulgated amended empowerment codes. “The vast majority of this charge will be recovered through learnership allowances afforded by SARS [South African Revenue Service].”
Stripping this out, trading margins would be on par with last year, it explained.
In a statement to shareholders on Thursday, CEO Ian Lourens said it was pleased it had “sustained our over 10-year uninterrupted growth trajectory, despite extremely difficult trading conditions”.
The group notes it has successfully integrated recent acquisitions and phase two of the OneLogix Logistics Hub in KwaZulu-Natal was completed in early 2016 at a cost of R90 million, which it expects to benefit its group companies.
It notes the revenue gain was thanks to maiden contributions for the full year of Jackson and Buffelshoek, while the newly-acquired Vision and Cryogas added to earnings for the last eight months of the year.
“Had the Vision and Cryogas businesses been acquired effective June 1, 2015, the effect on the statement of comprehensive income would have been an increase in revenue of R65.5 million and an increase in profit after tax of R9.3 million.”
Cash generated from operations increased 33 percent to R173.2 million and it invested R320.8 million in operational infrastructure.
“Recent investments in fleet, properties and acquisitions have substantially increased the magnitude of OneLogix operations and we are mindful of scaling the various businesses in line with opportunities and conditions in their respective market places.”
The board has not declared a dividend as it wishes to preserve its cash given its recent acquisitive activity, prevailing uncertain market conditions and to facilitate growth areas of the business.
IOL