Super Group, a leading transport logistics and mobility group, reported an excellent set of results for the six months ended 31 December 2016 if the prior and current periods’ once-off events are excluded. In the previous comparable period the earnings included acquisition costs of R88,8 million and a once-off foreign exchange profit of R101,3 million on the SG IN tIME forward exchange contract. Acquisition costs in the current period were R30,9 million. If the acquisition costs and the once-off forex profit were excluded from the results, underlying earnings before interest, taxation and amortisation, operating profit and profit before taxation would have increased by 27.1%, 22.7% and 21.9%, respectively.
“SG Fleet Australia made a significant contribution to the Group’s results after the inclusion of the NLC results for the full period and the contributions from Fleet Hire (UK) and Motiva (UK) for five months and one month, respectively. SG IN tIME’s results were also included for the full period compared to only two months in the prior reporting period. The acquisition of the nine Western Cape dealerships from Sandown Motors with effect from September 2016 also boosted the Group’s results”; stated Peter Mountford, Group CEO.
Group revenue and operating profit increased by 15.1% to R14,1 billion and 17.4% to R1 037 million, respectively, mainly as a result of the inclusion of NLC and SG IN tIME for the full period, the acquisitions as well as the commendable turnaround in SG Coal’ results. Super Group’s international footprint continued to increase substantially with the non-South African businesses contributing 38% and 58% to revenue and operating profit, respectively.
Core headline earnings per share, excluding the amortisation of intangible assets, acquisition costs, once-off forex gains and the BEE scheme related costs, after tax and non-controlling interests, increased by 3.2% to 163,5 cents.
Colin Brown, Group CFO, commented: “The increase in total assets of 2.3% to R23,3 billion and increase in net debt of 48.8% to R2 960 million are mainly as a result of the acquisitions of Fleet Hire and Motiva by SG Fleet and the nine Western Cape dealerships during the period under review. The Group’s total gearing, as at 31 December 2016, was 31.6%, higher than at 30 June 2016, but still comfortably within our acceptable range.”
Mountford concludes: “We are expecting the countries in which we operate to show low levels of domestic growth due to political and economic uncertainties. A number of European countries are facing an election year and the decision by the United Kingdom to exit from the European Union has also dampened the outlook, pending Brexit resolution. The Australian economy is also facing some challenges with weak commodity prices and modest Chinese growth projections. Nevertheless, we are cautiously optimistic regarding growth prospects across the Group’s businesses and believe that the Group’s strategy of being an innovative, integrated mobility solutions company is resolute.”