The transport and logistics group [DATA OLG:OneLogix Group LTD.] said the profit spike was due to contributions from its subsidiaries, OneLogix Linehaul, Madison and OneLogix Projex Cargo Solutions for the six months ended 30 November 2014.
“We have had a busy six months ensuring that our 130 million rand vehicle storage facility was brought into operation in time and on budget by December 2014. We bought further interests in subsidiary companies and post the interim period, sold PostNet to Aramex (UK) Ltd for a total consideration of 190 million rand,” said Ian Lourens, chief executive officer of the OneLogix Group.
“We further acquired Jackson and Buffelshoek, a niche refrigerated logistics operator moving agricultural products in the local and export markets, introduced a new BEE partner, Kagiso Capital and put a staff and management share scheme in place. All this to strategically position the OneLogix Group for the next phase of growth, ensuring structures are well aligned and that we have cash to grow our niche businesses as well as focus on organic growth.”
(WATCH VIDEO: OneLogix rakes in impressive interim results)
For the period, operating profit and core headline earnings per share rose by 12 per cent to 68 million rand and 20.8 cents respectively.
Trading profit grew by 13 per cent to 68.2 million rand while cash generated from operations increased by 11 per cent to 70 million rand.
The group also declared an interim dividend of eight cents per share.
Onelogix’ specialized logistics division, which contributed 92 per cent towards total revenue, saw the completion of a vehicle storage facility between Durban and Pietermaritzburg and calls it a “vital cog in the continued growth and development of the segment.”
The primary use of the facility will be for OneLogix Vehicle Delivery Services (VDS).
“Despite difficult trading conditions for VDS which manifested in margin pressure, it remains the largest income generator for the group and once again exceeded expectations,” said Lourens.
The group’s logistics division contributed eight per cent towards total revenue.
In December last year, Onelogix announced the disposal of Postnet. Lourens explained, “the sale of PostNet was concluded as we felt the company will be better suited to be within an environment that offers a dedicated focus on the imperatives of its retail requirement.”
(READ MORE: OneLogix disposes of PostNet for R190 million)
On the other hand, the group’s subsidiary Atlas Panelbeaters, formerly known as Atlas 360, has extended its service offering beyond traditional panel beating services and will soon be relocating to expanded premises over the next few months.
Onelogix said it has also made great strikes in securing logistics operations and routes in East Africa with the establishment operations in Tanzania and Kenya.
“African expansion continues to be a focus area for OneLogix, but as with anything we will approach the strategy carefully and ensure the capture of market share which can be maintained and enhanced upon,” Lourens explained.
“We will use the balance of the six months to ensure the East African operations run smoothly and meet customers’ delivery standards, that the vehicle storage facility at Umlaas Road fully develops into the potential we know it will deliver to the market and to continue to extract synergies across the niche businesses we operate.”