Supergroup

21/02/2012

African unit lifts Super Group

Super Group says despite the highly competitive economic and trading environment, it saw significant earnings growth in the six months ended December.

The group said yesterday that it believed the results were mainly due to the increased profitability of its African logistics operations and the performance of the domestic supply-chain unit.

Operating profit was up 36% to R405m from the previous corresponding period, with cash generated from operations up by 105% to R767m, while consolidated gearing was reduced to 15%, from 27% previously.

CEO Peter Mountford attributed the results "mainly" to the "satisfactory performance" of the South African supply-chain business "and the strong improvement in operating margins reflected by African logistics".

Super Group’s fleet solutions business had also outperformed, following new contracts, favourable residual values, lower maintenance costs and stringent control of overheads.

The groups’s dealerships saw sales volume growth that exceeded industry statistics, Mr Mountford said, with a 19% rise in new vehicle sales.

Cash generation within the group was strong, and net borrowings fell by R330m. Its balance sheet remained robust, reflecting a net asset value per share of 947c, or 14% more than the 832c in June last year. "Revenue growth rates are expected to be in line with general economic growth ," Mr Mountford said.

Source: Business Day