OneLogix strategy on track despite earnings taking a Covid-19 hit
DURBAN - ONELOGIX Group, the JSE-listed niche logistics provider, said yesterday that its strategy remained unchanged despite taking a hit from Covid-19 outbreak in the six months to end November, which reduced its earnings by 41 percent.
Chief executive Ian Lourens said the firm would continue to focus on extracting maximum efficiencies from existing businesses in order to protect and grow their individual market shares in their respective niche markets.
“The executive management team maintains full confidence in our experienced, stable management teams with their proven entrepreneurial skills, and fully expects them to continue guiding our businesses through the prevailing unprecedented and tough market conditions,” Lourens said.
OneLogix operates 12 businesses that are incorporated into three segments, which are Abnormal Logistics, Primary Product Logistics and Other Logistics Services.
Its headline earnings per share (Heps) declined to 10.1 cents a share and core headline earnings per share fell by 43 percent to 11.5c, with Lourens attributing the decline in earnings primarily due to the Covid-19 induced listless economic environment.
“Although emergency actions taken as a result of the pandemic continued well into this period, all 12 of the group’s companies remain in good health, having weathered the Covid-19 related impact,” he said.
Revenue decreased by 16 percent to R1.22 billion, with revenue declines experienced in all segments of the business, particularly the Abnormal Logistics segment while earnings before interest, tax, depreciation and amortisation (Ebitda) fell by 9 percent to R187 million, as a result of significant and successful cost control measures, which produced a 17 percent reduction of operating and administration costs, excluding share-based payments and retrenchment costs.
The group incurred once-off retrenchment costs of R8.8m during the period which affect about 75 people, predominantly in the OneLogix VDS business, which falls within the Abnormal Logistics segment.
This equated to an after-tax earnings impact of 2.8c a share.
OneLogix did not declare an interim dividend as the group decided to preserve its cash resources given prevailing uncertain market conditions and the need to expand and grow the business should the opportunities arise.
After the reporting period, OneLogix’s shareholders authorised the implementation of the sale of the Umlaas phase 3 development for a total consideration of R310m as well as the subsequent leaseback of the property from the purchasers.
OneLogix also acquired a 100 percent interest in the specialist agricultural equipment logistics company, Agritrans, for a cash purchase consideration of R18.6m in December.
Lourens said Agritrans, which is based in Frankfort in the Free State, was a well-established and respected operator with blue-chip customers in South Africa and neighbouring countries.