OneLogix’s profits at lowest in 11 years
DURBAN – OneLogix Group on Thursday delivered its worst performance in 11 years following a 33 percent decline in trading profits for the year to end May after the niche logistics provider experienced restricted trading as a result of the lockdown.
Its trading profit fell to R135.1 million, down from last year’s R200.5m.
Chief executive Ian Lourens said: "For the first time in 11 years, OneLogix is reporting a profit decline primarily due to the protracted listless economic environment, and in the latter two months, the ramifications of the worldwide Covid-19 societal lockdown".
He said the lockdown severely restricted trading for most group businesses, with one less affected exception, OneLogix Jackson, which was deemed an essential service.
However, Lourens stated that each of the group's 12 businesses had weathered the economic storm, with some achieving a profit improvement, while others remained inherently strong given the circumstances.
Its revenue dropped by 4 percent to R2.62 billion, with growth constrained by ongoing difficult trading conditions, the lockdown in April and May, and depressed volumes and rates across the businesses as well as a significant decline in cross-border volumes.
The lockdown had affected the last two months of trading and revenue was compromised to the extent of R170m and profit before tax by R35m.
Lourens said the group’s decentralised management structure enabled a swift and effective response to the pandemic lockdown.
OneLogix said about 5 percent of staff, mainly in the abnormal logistics segment, were retrenched at the beginning of June at a cost of R8.7m.
Operating profit, excluding capital items, decreased by 34 percent to R119.5m and earnings per share fell by 55 percent to 14.3 cents a share, while headline earnings and diluted headline earnings per share declined by 46 percent to 17.1c.
No dividend was declared due to the uncertainty in the economy.
OneLogix operates segments like abnormal logistics, primary product logistics and other logistics services.
The group is in the final stages of completing phase 3 of its Umlaas Road logistics hub.
The hub is expected to be completed before year-end at an estimated total cost of R310m.
Looking ahead, Lourens said trading conditions for all group companies were expected to remain difficult for the foreseeable future.
"Our strategy remains unaltered.
"We will continue to focus on extracting maximum efficiencies from existing businesses to protect and grow their individual market shares in their respective niche markets,” he said.
OneLogix shares closed flat at R2 on the JSE on Thursday.