A production line for manufacturing of car engines. Picture: 123RF/HAMIK
A production line for manufacturing of car engines. Picture: 123RF/HAMIK

Shares in transport and logistics company Super Group had their steepest fall in a week after the company said full-year profits would decline with its business operations hit by the coronavirus lockdowns.

The share price closed 8.33% lower at R16.50, giving it a market cap of R6.13bn. Super Group’s operations include courier services, vehicle rentals and car dealerships.

“The Covid-19 pandemic has resulted in the business environment becoming more demanding and uncertain, and it has created significant business disruptions in all geographies in which the group operates,” Super Group said.

The group experienced partial lockdowns in Australia, Germany, Spain and the UK, saying that the impact on the group’s trading “has been inherently negative”.

A sharp drop in new vehicle sales has weighed on profits, with those grinding to a halt in both SA and the UK during the respective lockdowns of the countries.

Headline earnings per share (HEPS) for the 11 months to May are 48.9% below the prior period, the group said in a trading update. HEPS for the year to end-June are expected to be 50% lower than the prior period’s 373.6c.

HEPS is a widely used profit measure in SA that strips out one-off items to give a better indication of the underlying performance of a business.

Revenue from operations of R31.4bn in the 11 months to end May was 11.9% below the prior comparable period, the group said.

“In the short term, management is focused on operational delivery, in a flexible and cost-efficient manner, and within the parameters set by governments,” the group said.

Its focus for the next six months will be on minimising the effect of restrictions imposed due to Covid-19, the retention of existing contracts, and promoting new business solutions for new customers in the supply chain and fleet Africa operations in particular, it said.

Super Group’s results for the financial year to June 30 have been and will continue to be affected by Covid-19, weak macroeconomic conditions and business rationalisation in both Europe and SA. /With Karl Gernetzky


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