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2018 Interim Results

Feb 19 2018

Super Group, a leading transport logistics and mobility group, reported a satisfactory set of results for the six months ended 31 December 2017. Peter Mountford, Group CEO, said: “We continue to experience challenging trading conditions with high levels of competition across most of our operations, globally and locally. Political uncertainty regarding the outcome of Brexit and the lead up to the 2019 South African elections have also influenced some of our operations. Following a two-year period of concluding strategic acquisitions, Super Group’s results reflect the geographical diversity, with our offshore operations having contributed 46% of revenue and 62% of operating profit.”

Group revenue increased by 27.5% to R18.0 billion predominantly as a result of the acquisitions of the Slough Motor Corporation (SMC) dealerships in the United Kingdom and SG IN tIME’s acquisition of an 88% interest in the Spanish courier company, Ader. Revenue also increased as a result of the inclusion of the Essex Auto Group and the Western Cape dealerships for the full period, as well as an excellent performance by SG Coal.

Operating profit increased by 10.8% to R1 149.2 million. The main reason for the growth rate in operating profit being lower than the revenue growth rate is the acquisition of lower margin businesses, namely SMC and Ader. Earnings per share and headline earnings per share increased by 6.6% to 152.9 cents from 143.5 cents (Dec 2016) and 7.7% to 155.1 cents from 144.0 cents (Dec 2016), respectively.

“We are pleased with the operating cash flow having increased by 19.3% to R1 688.1 million. Super Group’s gearing ratio of 31.6% was at a similar level to the year-end ratio with the net asset value per share increasing by 4.1% for the period to 2 492.5 cents from 2 394.1 cents at 30 June 2017;” commented Colin Brown, Group CFO.

Mountford concluded: “We remain committed to our strategy of being an innovative, integrated mobility solutions company, which is integral to growing and expanding Super Group’s core businesses. The European and UK markets seem to be stabilising despite the continuing uncertainty regarding the potential Brexit outcome. The South African socio-political landscape continues to be challenging although there is some positive sentiment given the current political changes. The South African consumer remains under significant pressure and low growth rates are expected to persist. Nevertheless, the Group remains cautiously optimistic with regards to the impact of these political changes on the economies in which it operates and expects to further improve operational efficiencies and gain market share in most business sectors over the remainder of the financial year.”