To view the PDF file, sign up for a MySharenet subscription.

ONELOGIX GROUP LIMITED - Trading statement

Release Date: 26/07/2021 15:00
Code(s): OLG     PDF:  
Wrap Text
Trading statement

(Incorporated in the Republic of South Africa)
(Registration number 1998/004519/06)
JSE share code: OLG ISIN: ZAE000026399
(“OneLogix” or “the company” or “the group”)


Shareholders are advised that OneLogix expects changes in earnings and diluted earnings per share (“EPS”),
headline and diluted headline earnings per share (“HEPS”) and core headline and diluted earnings per share (“Core
HEPS”) for the year ended 31 May 2021 (“year”) within the ranges reflected in the table below:

                        Previously reported         31 May 2021 expected range            31 May 2021 expected
                                31 May 2020                                                              range
                          (cents per share)                                                  (cents per share)
EPS                                    14.3     Decrease of between 9% and 16%                    12.0 to 13.0

HEPS                                   17.1    Decrease of between 32% and 38%                    10.6 to 11.6

Core HEPS3                             22.2    Decrease of between 36% and 42%                    12.9 to 14.2

1.     The continuing effects of the Covid-19 lockdown, which included the knock-on effect of international
       component shortages on vehicle and truck production, influenced the group in various ways, the latter
       affecting OneLogix TruckLogix and OneLogix VDS in particular. Furthermore, the recalibrated reduction
       by customers to more conservative vehicle stock holdings resulted in a year-on-year reduction of storage
       revenue of approximately R36 million, most of which was experienced in the second half of the year.

       This was compounded by the mid-year release of our additional vehicle storage facilities in KwaZulu Natal
       (upon the completion of the new Umlaas Road Phase 3 storage facilities) contributing to an additional
       R27 million in lease related costs as per IFRS 16 in the second half of the year. As previously reported,
       OneLogix VDS incurred approximately R8.8 million in retrenchment costs from emergency actions taken
       earlier on in the year to mitigate the severe and sudden impact of the pandemic on the automotive industry.

2.     The group continued with its business review of the processes, systems, asset allocations and fleet viability
       in its liquid bulk business, OneLogix United Bulk. This process, although not complete, has helped to
       streamline the business and has started to bear fruit. The dynamic and motivated management team has a
       renewed focus and are excited about the future prospects of the business. This review had an adverse c.R18
       million impact on pre-tax earnings in the reporting period, mostly non-cash flow and non-recurring in

3.     The recent civil unrest resulted in the group experiencing greatly reduced activity for the approximately
       two weeks ending on 19July 2021. Thankfully all our staff, many of whom were subject to harrowing
       experiences, have returned to work and the group is fully functional. The arson and looting associated with
       the unrest resulted in the destruction of four fully loaded general freight vehicles at our OneLogix Projex
       business. The remaining fleet and all other assets, principally the Umlaas Road facility, were unaffected.
       The group is comprehensively insured including SA Special Risk Insurance Assurance (SASRIA) cover in
       respect of damage to assets and customer’s goods caused by the unrest.

4.     EPS differs from HEPS primarily due to the following reasons:
       -   an after-tax R3.6 million impairment charge related one of the group’s owner-occupied properties in
           the prior year.
       -   an after-tax profit after non-controlling interests on disposal of property, plant and equipment of
           R3.1 million was deducted from HEPS in the current year compared to a loss of R3.2 million that was
           added back in the prior year.

5.     Consistent with prior reporting, the company aims to present to shareholders the same information that
       management utilises to evaluate the performance of the group’s operations. Accordingly, we present Core
       HEPS, which is headline earnings (as calculated based on SAICA Circular 1/2021) adjusted for the
       amortisation charge of intangible assets recognised on business combinations and charges relating to
       equity-settled share-based payments. During the current year there was no charge required related to equity-
       settled share-based payment schemes compared to R6.1 million in the prior year.

6.     Existing covenants with bankers, based on the anticipated results used in the compiling of this trading
       statement, are projected to be met with a sufficient amount of headroom and the group has the adequate
       resources and access to facilities to fund operations for the foreseeable future in these extremely volatile

7.     The weighted average number of shares in issue, excluding shares held by staff participation schemes that
       are classified as treasury shares, was 6% lower at 226,547,090 shares due to the recent repurchases of shares
       in the open market.

The estimated financial information contained in this announcement has not been audited, reviewed or reported
upon by the group's external auditors.

The group's audited results for the year are scheduled to be released on or about 26 August 2021.

26 July 2021

Java Capital

Date: 26-07-2021 03:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story