Super Group: Growth, not dividends, tops this priority list
The transport conglomerate that has been a consistent performer in the past few years
A keen observer learns a lot about a company’s priorities by taking note of what it does with excess cash. It is in times of plenty that true character is laid bare.Take Super Group, the transport conglomerate that has been a consistent performer in the past few years. In the year ended June 30, it reported double-digit increases in revenue (19%), operating profit (15%), headline earnings (19%), operating cash flow (21%) and net asset value per share (13%). By following Super Group’s money one gets a sense of the company’s priorities. About 92.3% of the R8.2bn wealth distributed in the 2017 financial year went to employee remuneration (40.1%), reinvestment in the group (37.5%) and taxes (14.7%). This left 4.2% and 3.5% of the wealth — as they prefer to call it — for shareholders and repayment of debt, respectively.From this, one can tell that returning excess cash to shareholders is at the bottom of the company’s priorities right now. That is understandable given its history. When C...
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