Supergroup

21/02/2012

Super Group stock surges on first half results

Super Group's share price surged close to 10% in afternoon trade on Tuesday after the transport and logistics group announced a rise in half-year net profit.

The group revenue rose 23% to R4.7 billion in the six months to December 2011, from R3.8 billion a year ago, mainly as a result of new business generated in the supply chain SA and fleet solutions businesses, as well as a 19% increase in new vehicle sales within the dealership operations, the company said late on Monday.

Operating profit increased 36% to R405 million, reflecting an operating margin of 8.7% compared with 7.8% in the prior comparable year.

Chief executive Peter Mountford said the improved results were mainly due to the increased profitability of the African logistics operations and the "excellent" performance in the fleet solutions division.

Giving an outlook, Mountford said: "We are expecting the Southern African economy to remain pedestrian and competitive. Revenue growth rates are expected to be in line with general economic growth, other than where we generate new business or extend our product lines.

"We have identified and are considering a number of business opportunities that will be earnings-enhancing and value-accretive to the group. The Eastern Cape provincial government contract expired at the end of January 2012 and despite this loss, we are expecting to generate earnings and headline earnings of at least R1.60 per share for the year ending June 30 2012."

Source: Business Live