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CEO pleased with Super Group’s ‘excellent growth in earnings’

Feb 13 2013

​Headline earnings climb nearly 20% in the six months to December thanks to new business generation across three divisions.

JSE-listed transport logistics and mobility company Super Group’s headline earnings per share climbed nearly 20% in the six months to December thanks to new business generation across three divisions.

Its share rose 5% to close at R18.90 on Tuesday following the release of its results.

CEO Peter Mountford said the company had performed well in terms of growth despite difficult market conditions.

He said the headline earnings per share growth of 19.5% to 95.3c was beyond market consensus and the group’s expectations.

“Despite the difficult prevailing economic environment, the group has achieved excellent growth in earnings, mainly as a result of new business generation across all three divisions.”

Another highlight of the reporting period was the successful implementation of a staff empowerment scheme, helping the company to retain its level-three empowerment rating, he said.

The group’s revenue increased 16.3% to R5.4bn, with all businesses other than FleetAfrica reporting sales growth.

Super Group’s main divisions are supply chain services, fleet services and dealerships.

Mr Mountford said Super Group had managed to stave off the worst of the prolonged transport strike last year.

“We had labour unrest in the Congo which affected our logistics division. We also had the freight strike in SA, but we managed to achieve solid growth despite this,” he said.

Disruptions to the group’s supply chain business as a result of the Road Freight Association strike in September last year led to a 5% reduction in divisional revenue and profit.

In Australia, Super Group’s SG fleet saw record sales. This was despite the retail consumer market in Australia remaining subdued as a result of the slowdown in commodity exports and the strong Australian dollar.

New car sales in South Africa for the six months covered by the reporting period grew by 8.3% compared with 7.8% for the comparable period to December 2011.

Mr Mountford said the biggest challenge to Super Group for 2013 was how much South Africa’s economy as a whole would grow.

“We know SA is highly competitive, but we are holding our own,” he said.

Source: Business Day, Alistair Anderson