OneLogix continues to grow its profits
Specialised logistics group weathers weak economic conditions
OneLogix, the specialist industrial logistics service provider says it is unlikely to make any acquisitions for the next two years, as there were no signs of the economy improving materially during the period.
The company, which managed to sustain its uninterrupted profit trajectory despite an increasingly hostile trading environment, will focus on managing its existing businesses in SA, which is experiencing its worst economic conditions in decades.
CEO Ian Lourens says its bottom line grew 11% in the reporting period and that all of its businesses performed within their budgets. The majority of the group’s businesses delivered bottom-line growth, almost exclusively organic in nature, he said.
“We have achieved strong results in a weak economic environment with positive growth across our metrics. We can always do better but we are working in the hardest operating conditions I have worked in,” said Lourens.
Group revenue rose 19% and profit before tax, excluding capital items, was up 9%. The company’s net asset value climbed 8% to 389.7c a share.
However, earnings per share decreased 29% to 37.2c due to the prior year once-off post-tax profit from the DriveRisk disposal of R36.5m and from the Umlaas Road sale and leaseback of R12.7m, offset by increased trading earnings of 4.2c a share.
A dividend for the second half of the year of 5c was declared, bringing the total dividend for the year to 11c.
Lourens cautioned that though it is OneLogix’s preference to continue declaring a dividend, future declarations will continue to be evaluated in the context of the board’s review of trading conditions, growth prospects and related business demands facing the group.
OneLogix, which has a market capitalisation of R816m, has seen its share price fall 21.62% to R2.90 so far in 2019.