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2014 Final Results

Aug 18 2014

​Super Group’s Board of directors is pleased to report an excellent set of results for the year ended 30 June 2014. The growth in earnings is testimony to the Group’s integrated mobility solutions strategy and has been achieved despite the highly challenging market conditions and inflationary pressures experienced in both Southern Africa and Australasia.

Financial highlights for the year ended 30 June 2014

  • Revenue for the year increased by 22% to R14,3 billion
  • Operating profit of R1 345 million, up 19% on the prior year
  • Headline earnings per share (HEPS) increased by 17% to 249 cents
  • Adjusted HEPS increased by 18% to 260 cents
  • Net asset value per share up 18% to 1 437 cents
  • Operating cash flow increased by 39% to R2 005 million

Super Group undertook a number of corporate actions during the year. The largest being the listing of Super Group’s subsidiary, SG Fleet Group Limited (SG Fleet), on 4 March 2014 on the Australian Securities Exchange. Super Group continues to be the largest shareholder, with a shareholding of 52,5% as at 30 June 2014. Through SG Convenience, the Group acquired R&H Liquor Distributors, a liquor distribution company to restaurants and hotels effective 1 March 2014. On 1 May 2014, Super Group acquired a 50,1% interest in the GWM South Africa distributorship. During the year, the Group also acquired two GWM dealerships. None of these acquisitions had a material impact on the Group’s results for the year under review.Revenue increased by 22,0% to R14 297 million mainly attributable to new contracts secured in most of the Supply Chain South Africa businesses, a strong performance in the African Logistics cluster and increased sales in the Dealerships Division.Operating profit increased by 18,6% to R1 345 million driven by operational efficiencies, consistent focus on cost controls within each of the operations as well as securing new contracts. Operating profit margin pressure, with the exception of Dealerships, was experienced as a result of the competitive landscape, especially in the second half of 2014, resulting in a margin decline of 27 basis points to 9,4%.Basic earnings per share (EPS) and HEPS for the year under review increased by 13,3% to 249,2 cents and 16,9% to 248,7 cents, respectively. Adjusted HEPS increased by 17,9% to 260,0 cents on the basis that the B-BBEE expenditure, amortisation of intangibles and acquisition costs amounting to 11,3 cents per share are excluded from HEPS.

The Group’s Return on Net Operating Assets (RNOA), after tax, was 18,6% for the year. As at 30 June 2014, Super Group’s net debt position decreased by 42,8% to R91 million. The Group’s total gearing as at 30 June 2014 was 1,7%. The net asset value per share increased by 17,7% for the year to 1 437,1 cents at 30 June 2014. The Group stated that its Board is satisfied with the Group’s Statement of Financial Position.

Operating cash flow increased by 39,0% for the year to R2 005 million with a working capital outflow of R90 million compared to R286 million in the comparable year as a result of stringent working capital management. Cash generated from operations, after working capital, increased by 65,7% to R1 915 million.

During the year under review, the company, through a subsidiary, repurchased 2 635 791 shares, totaling 0,8% of the issued share capital, at an average share price of R25.05. The total consideration relating to these repurchases was R66 million. These shares are being held as treasury shares.

Peter Mountford, Chief Executive Officer of Super Group, commented: “We are expecting trading conditions in the South African economy to remain challenging over the short to medium term. We are also anticipating an increase in competitive pricing pressures across all sectors and will continue focusing on driving cost efficiencies throughout the Group. Nevertheless, a number of interesting investment opportunities have been considered and explored across the Group. One such acquisition is Phola Coaches, a business providing passenger transport solutions to the mining, power generation and construction industries, which was acquired subsequent to year end. We are very proud of FleetAfrica having secured significant new business over the past year which will be implemented over the next eighteen months. The culture of service excellence in all areas of our business remains important to Super Group’s position as an innovative, integrated mobility solutions company.”

Final Results PDF (330KB)
Press Release PDF (347KB)
Press Advert PDF (417KB)
Investor Presentation PDF (2.8MB)