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

21/02/2012

Super Group stock surges on first half results

Super Group's share price surged close to 10% in afternoon trade on Tuesday after the transport and logistics group announced a rise in half-year net profit.

The group revenue rose 23% to R4.7 billion in the six months to December 2011, from R3.8 billion a year ago, mainly as a result of new business generated in the supply chain SA and fleet solutions businesses, as well as a 19% increase in new vehicle sales within the dealership operations, the company said late on Monday.

Operating profit increased 36% to R405 million, reflecting an operating margin of 8.7% compared with 7.8% in the prior comparable year.

Chief executive Peter Mountford said the improved results were mainly due to the increased profitability of the African logistics operations and the "excellent" performance in the fleet solutions division.

Giving an outlook, Mountford said: "We are expecting the Southern African economy to remain pedestrian and competitive. Revenue growth rates are expected to be in line with general economic growth, other than where we generate new business or extend our product lines.

"We have identified and are considering a number of business opportunities that will be earnings-enhancing and value-accretive to the group. The Eastern Cape provincial government contract expired at the end of January 2012 and despite this loss, we are expecting to generate earnings and headline earnings of at least R1.60 per share for the year ending June 30 2012."

Source: Business Live

20/02/2012

2012 Interim Results

Super Group’s unaudited interim condensed and consolidated results for the six months ended 31 December 2011 have now been released.

Despite the prevailing highly competitive economic and trading environment, the results for the six months ended December 2011 reported by Super Group, the JSE listed transport logistics and mobility group, achieved significant earnings growth.
 

SUPER GROUP POWERING AHEAD

• Revenue for the period increased by 23% to R4,668 million
• Operating profit of R405 million up by 36% on the prior period
• Profit before taxation increased by 63% to R353 million
• Cash generated from operations up by 105% to R767 million
• Headline earnings increased by 63% to R244 million
• Reduction in consolidated gearing to 15% (30 June 2011: 27%)
   

2012 Interim Results (PDF 168Kb)

 2012 Interim Results Afr (PDF 169Kb)

 Download investor presentation (PDF 1.7Mb)

 View press release (PDF 389Kb)

16/02/2012

Super Group - Hot or Not?

Super Group recently featured on CNBC Africa’s Hot StoXX show which highlights some of the top movers on the JSE - Africa's largest stock exchange.

Hear what Anthony Durham from Cogito Capital and Daniel Isaacs from 360ne Asset Management had to say about Super Group’s recent performance and whether they feel the feel the stock is hot or not.

Watch the video clip here

01/02/2012

Super Group implements global carbon accounting solution

Super Group today announced its implementation of Greenstone Carbon Management’s Acco₂unt solution to measure, manage and reduce its environmental impact. This signals another significant step in Super Group’s drive to improve its environmental performance across its broad-based supply chain management business.

The carbon accounting software enables Super Group to identify opportunities to reduce its environmental impacts, set specific targets for business activities or regions and monitor performance over time ensuring that the associated financial savings are achieved. This will allow Super Group to track and manage the carbon emissions across its three operational divisions.

“Greenstone's Acco₂unt solution makes the whole process of tracking our emissions quicker, easier and more cost-effective. We are able to track and monitor our carbon emissions in each of our divisions and set focused reduction targets. The software allows us to review the impact of carbon emissions during current operations and also model and forecast emissions for any planned business growth,” said Nigel Redford, Group Company Secretary at Super Group.

Using Greenstone’s Acco₂unt solution, Super Group has measured its baseline carbon footprint for the past two financial years. Travel and transport accounted for 88% of emissions, primarily due to Super Group’s large fleet of company vehicles.

Greenstone’s Acco₂unt implementation partner in South Africa, Cleaner Climate, a specialist climate change consultancy, is now working with Super Group to develop a carbon emission reduction programme.

Greenstone’s CEO, Matthew de Villiers, said; “We are delighted that Super Group has selected Greenstone’s Acco₂unt solution and, together with our South African partner Cleaner Climate, we look forward to helping Super Group deliver on their commitment to becoming recognised as a leader in environmental performance. We are seeing increasing interest in companies taking a proactive approach to carbon management in South Africa and companies like Super Group are setting the example.” 

Super Group works with Greenstone Carbon Management and Cleaner Climate, using Greenstone’s Acco₂unt carbon footprinting software to calculate, measure and monitor our carbon emissions.

18/11/2011

Fitch upgrades Super Group’s credit ratings

Super Group is pleased to report that Fitch Ratings has upgraded Super Group’s National Long-term rating and National Senior unsecured ratings to ‘Investment Grade: Good Credit Quality’ (BBB-(zaf)) from ‘Speculative’(BB+(zaf)).

At the same time, Super Group’s National Short-term rating was upgraded to ‘Fair’ (F3(zaf)) from ‘Speculative’ (B(zaf)). The Outlook on the Long-term rating is Stable.

Super Group is pleased that the upgrade of its ratings reflects significant deleveraging by the group at end-June 2011 as a result of strong shareholder and lender support, evidenced by the stable cash flows within Super Group’s continuing operations, notably the full maintenance lease and supply chain management businesses.

Source: JSE SENS Department

28/10/2011

2011 Integrated Annual Report

Super Group’s 2011 Integrated Annual Report reviewing performance to 30 June 2011 is now available to view. The Notice of the AGM on the 25th November at 09h00 is included in the Integrated Annual Report.

The 2011 Integrated Annual Report is published in various media. An abridged version of certain sections is contained in the integrated Report. The comprehensive Annual Financial Statements, Corporate Governance Report and the Sustainability Report are available as separate downloads. All PDF reports are fully interactive.

Download 2011 Integrated Annual Report here (PDF 6.9MB)

Download Annual Financial Statements here (PDF 2.4MB)

Download Corporate Governance Report here (PDF 434KB)

Download Sustainability Report here (PDF 1.1MB)

Download Super Group Final Circular here (PDF 189KB)

 Consolidation of Share Capital, Odd-Lot Offer & Specific Offer - English (PDF 455KB)

 Consolidation of Share Capital, Odd-Lot Offer & Specific Offer - Afrikaans (PDF 455KB)

18/08/2011

Super Group acquires specialist bulk dry goods transporter Haulcon

Super Group has announced the acquisition of Haulcon, a specialised bulk dry powder and liquids distribution business, at a cost of R46 million effective 1 July 2011.

Haulcon provides short and long haul dry bulk tanker transportation services to clients in the Civil Engineering, Construction, Mining and Cement industries.

The company currently operates a fleet of over 90 dry bulk tankers and is well positioned for further growth under the Super Group umbrella.

Super Group CEO Peter Mountford confirmed the Haulcon acquisition at the company’s 2011 financial results presentation and commented that it complemented the Group’s strategy of pursuing synergistic acquisitions in similar niche industries.

17/08/2011

2011 Financial Results

Super Group’s reviewed results for the year ended 30 June 2011 have now been released. Despite the continuing difficult economic and trading environment, Super Group, the JSE listed transport logistics and mobility group, today delivered a satisfactory set of results for the full year ended June 2011.

SUPER GROUP ON THE GO WITH SOLID FULL YEAR RESULTS

• Revenue for the year increased by 12% to R7,835 million
• Operating profit of R612 million up by 25% on the prior year
• Profit before taxation increased by a satisfactory 116% to R470 million
• Cash generated from operations up by 18% to R1,243 million
• Headline earnings from continuing operations increased by 114% to R339 million
• Reduction in total gearing to 27%
   

Click here for results announcement Eng (PDF 858Kb)

 Click here for results announcement Afr (PDF 860Kb)

 Click here for results presentation (PDF 1.68Mb)

 Click here for press release (PDF 555Kb)

17/08/2011

Business Report: Super Group earnings rise

A return to profitability of the African Logistics operations of Super Group resulted in a substantially improved financial performance by the listed transport, logistics and mobility group in the year to June.

Yesterday Super Group reported a 114 percent year-on-year increase in headline earnings from continuing operations to R339.3 million for the year to June.

Diluted headline earnings a share from continuing operations grew by 45 percent to 10.7c and revenue rose by 12 percent to R7.84 billion.

The increase in revenue from continuing operations was attributed mainly to new business generated by the Supply Chain South Africa and Fleet Solutions businesses and a 25 percent increase in new vehicle sales within the dealership’s operations.

Operating profit increased by 25 percent to R612m, which reflected the improvement in the operating margin to 7.8 percent from 7 percent.

Peter Mountford, Super Group’s chief executive, said that management had consistently focused across all the group’s divisions on improving operational efficiencies and implementing cost containment initiatives, which had contributed significantly to the improved operating margin.

Mountford believed that the improved results were mainly attributable to the return to profitability of the African Logistics operations.

Super Group’s African Logistics supply chain operations turned around an R18.88m operating loss in the previous year to a R16.69m operating profit this year.

Mountford said its African Logistics operations had a very old vehicle fleet that suffered a lot of breakdowns, and repair costs were high.

He said the group took a decision to renew the fleet, which had “made a huge difference” and resulted in a 70 percent reduction in cost a kilometre and a 71 percent reduction in breakdowns. Mountford said 300 of the 400 vehicles in the fleet had been replaced by last October with used vehicles from the US at a total cost of about R87m.

He said the first tranche of 104 vehicles cost about R30m and would have cost about double that in South Africa.

The quality of the vehicles was better than those in the domestic used market, he said.

Group profit before taxation increased by 166 percent to R469.96m. Operating cash flow grew by 18 percent to R1.24bn.

Mountford said the group was exceptionally pleased in achieving the repayment of all its term loans during the first six months of this year, plus some additional debt from cash generated by operations, which led to a reduction in the group’s total gearing to 27 percent from 54 percent in the previous year.

“We managed to reduce net borrowings by R606m over the year,” he said. “The unrestricted gearing ratio, which excludes full maintenance leasing borrowings and restricted cash, has reduced to 18 percent from 26 percent in June 2010.”

Mountford said the group’s gearing was expected to be reduced in the coming year to well within its target range of between 20 and 35 percent. A dividend was not declared.

He said the group had consistently emphasised on its investor road shows that it would reassess the resumption of dividend payments in June 2012.

Mountford said the local economy remained pedestrian and that moderate volume growth was predicted within the group’s Supply Chain and Fleet Africa operations over the next year. But the group was in a sound financial position and optimally positioned for any improvement in economic activity within its core markets.

The shares gained 1.3 percent to 79c yesterday.

Source: Business Report

17/08/2011

Moneyweb interview with Peter Mountford, 2011 Results

ALEC HOGG: If you had a long-term view you’d have seen Allan Gray pumping enormous amounts of money into Super Group, and we all sniggered on the sideline. Of course, today Super Group’s got three billion shares in issue, which is a little bit of a problem, because there’s a whole lot of shares that go around. But it also is starting to perform very nicely. The profits coming out today – it is a stock that perhaps you should be looking at again, Dave.

DAVID SHAPIRO: The results came out late, but I had a quick look at them. They doubled their profit and they are on the way to recovery. The share price not that cheap at the moment, up at an 8 P/E. So I think the market’s been pretty smart.

ALEC HOGG: Peter Mountford, the chief executive of Super Group, joins us now. Dave thinks your share price is, hmm, stretched, Peter.

PETER MOUNTFORD: Hello, Alec. How are you?

ALEC HOGG: Good, thank you. In a better frame of mind than most of the times we've spoken in the past with Super Group.

PETER MOUNTFORD: Absolutely.

ALEC HOGG: Things are looking a lot better, aren’t they?

PETER MOUNTFORD: Yes, they are. Just back to Dave’s comment, I'm not sure it looks expensive. Obviously all those P/E ratings will change tomorrow with the announcement of the headline earnings per share at 10.7c. So at 79c it's about a 7.38 price/earnings multiple, and I think it's relatively good value on the market at the moment.

ALEC HOGG: Ja, 10.7c for the year as a whole. The way you are going, you’ve doubled it from last year. Is it possible you could double it again, or are you now getting close to the capacity of the business?

PETER MOUNTFORD: No, we certainly couldn’t double it again next year, and we are getting to the type of levels that we expect the core operations to operate at. But certainly we’d expect reasonable growth next year. We’d certainly like to expect to at least achieve double-digit growth in headline earnings per share plus.

ALEC HOGG: Well, the bailouts worked. The banks are happy. They got R210m worth of interest. SARS is happy – it got R115m worth of tax. I don’t know if shareholders are quite that happy yet, because they haven't seen any dividend flows. Are they next in line?

PETER MOUNTFORD: Yes, Alec. We've said for the last 18 months on our investor roadshows that we'd reassess the dividend position in June 2012. I think that is our board’s position. We’ll look at it again at the end of the forthcoming financial year.

ALEC HOGG: But you are buying again, and I suppose that shows a sign of great health. You made an acquisition – a company called Haulcon – not a huge one for a group your size, R28m, but nice to be buying rather than having to sell, as you’ve been doing.

PETER MOUNTFORD: Absolutely. We've been saying for about the last 18 months as well that there’s certain transport and distribution niches that interest us. One is certainly pharmaceuticals and the other was bulk tankers, whether it be specialised chemical, fuel or powder transport. And certainly Haulcon meets the latter requirement. It's about a R28m-odd deal, but is a good start in that sector.

ALEC HOGG: Are you finding that Transnet’s getting any better? It is a competitor of yours, of course.

PETER MOUNTFORD: It is – although in many ways we wouldn’t see it as a significant competitor to road transport. And I think the in- and outbound logistics to rail is a tremendous opportunity into the future. We’d be supportive of a stronger rail infrastructure, and certainly there are a lot of primary products that should be moving on rail. And we’d back ourselves to do, as I say, some of that in- and outbound logistics in that scenario.

ALEC HOGG: Peter, we cover something on Moneyweb called the Mooi River Index, which is the Mooi River Toll Plaza, and that’s been rising 20% a year kind of continuously for a period now. Certainly the economy isn't rising 20% a year, and your volumes aren't either. It's got to be coming from somewhere.

PETER MOUNTFORD: Yes. There certainly is more and more road traffic, and I think that’s the story for the whole of the sort of SADC region. But it's certainly got to be good for the region ultimately if the rail infrastructure increases and if some of the projects like new ports in Mozambique come off the ground.

ALEC HOGG: So you'll benefit from the multiplier effect for the company generally. An area that you did have problems with in the past was fleets that you give to the public sector. Now, having spent a very brief period in the public sector, I know that the way that people drive cars owned by the state is certainly not quite as delicately as they would be driving their own. You must be getting the pricing right now, because it appears as though you are starting to make money out of these contracts.

PETER MOUNTFORD: Yes, we put a lot of effort into the service and maintenance costs within those fleets. We've gone through a whole lean evaluation of our Fleet Africa business. We've looked to optimise service level in our maintenance depots, we've looked to take a lot of cost out of that business. So a lot of the benefit has come through cost reduction and optimisation. But you are right – some of those fleets do have quite a high accident rate and that’s something that we've got to manage carefully as well and certainly look at all sorts of innovative driver and driver assistant training programmes in those environments.

ALEC HOGG: Peter Mountford. David, when I did my national service all those years ago, I remember one guy actually took a Jeep home and went to go and fetch it the next day and the whole engine has disappeared. That was one of many instances. So the kind of business that Super Group does with the public sector – sometimes strange things will happen.

DAVID SHAPIRO: Like a hired car. … Look, full credit to him. If you look at the results today, what do they earn? A profit of about…

ALEC HOGG: 339.

DAVID SHAPIRO: That's big money. And I think he’s turned it around very well in to a proper, serious business. Maybe a consolidation now, so we get a share price of around 79c.

ALEC HOGG: But R600m in debt, David, gearing down to 27%. This is absolutely one that can go forward. And well done to Allan Gray and the others who supported them.

DAVID SHAPIRO: Of course. Look, it's capitalised now – what, R2.5bn-odd. A serious company once more.

ALEC HOGG: Well, nice to see Super Group back on its feet. Peter Mountford sounds pretty positive about the future, saying that David’s view that it's stretched at 79c is a little pessimistic. But there are a lot of shares in issue. So perhaps sometime to consolidate them – I'm sure the board will be looking at that at a period in the future.

17/08/2011

Business Day: Three Super Group divisions excel

Super Group , a global logistics and supply chain management group, said the results it released yesterday for the year ended June were "satisfactory", despite a difficult trading environment.

The company, which conducts business in the UK, Australia, New Zealand and numerous African countries, says improved operating efficiencies and cost containment significantly helped operating margins.

"We are very happy with the way (the results) came out. All three operating divisions did well," CEO Peter Mountford said yesterday. He said the group had seen good cash generation this year and last.

Headline earnings from continuing operations shot up 114% to R339m, with cash generated from operations up 18% to R1,2bn.

Operating profit rose 25% to R612m, mainly as a result of new business in supply chain operations and a 25% increase in new vehicle sales within its dealerships, both in SA and Australia.

It also repaid all term loans in the past year, reducing total gearing to 27%, from 54% previously.

The primary emphasis remains on organic growth and strategic acquisitions, with Super Group having added liquid and dry bulk transport capacity to its business, along with the distribution of pharmaceuticals.

The group also said it focused on cash generation and managing working capital, which saw net cash retention for the year of R672m, despite spending R245m on property, plant and equipment. It mainly attributes the improvement in operating margins — to 7,8%, from 7% a year earlier — to the return to profit of its African logistics operations and the sound performances of its fleet and dealership divisions.

However, it said overall growth in the supply chain sector was moderated by a disappointing result in its Sherwood International business.

Sherwood’s operational profitability fell significantly as a result of lower margins on a number of core beverage procurement contracts. The business was also hit by a fall in agricultural and mining equipment capital expenditure in sub-Saharan Africa, including Mali, Senegal, the Democratic Republic of Congo and Zambia.

Source: Business Day

22/06/2011

Beyond The Finish Line

Super Group is proud to be associated with the seventh edition of the Sani2c mountain bike race. As the official logistics supplier, Super Group was responsible for all the transport and logistics during the event. This involved both transporting the bikes to and from the event as well as ensuring that each cyclist’s race box of essential items was successfully delivered to the next race village throughout the duration of the race. 

The Sani2c is the biggest mountain bike stage race on the planet starting in the village of Underberg and finishing three days later on the coastal town of Scottburgh. The race started in 2005 and now attracts over 3000 cyclists competing in both the adventure and the main race which follow on consecutive days. At registration, each cyclist is given a race box to pack their essential items for the duration of the race. It was Super Group’s job to ensure that each cyclist received the correct box at the end of each stage.

The Super Group logistics team was coordinated by Peter Koller from Tippers and Victor Dickenson from Super Rent who managed a total of 12 truck drivers and assistants during the event. Six 8 ton trucks and 1 tautliner were used to transport the boxes with up to 3000 boxes delivered to two different race villages on the second and third days of the race.

The feedback from the race organisers, competitors and even some of our own customers has been phenomenal. The custom branded Super Group Sani2c trucks were a welcome sight along the route and the logistics planning went off without any major hitches. 12 Super Group teams entered the event and all did themselves proud in particular our top placed team who finished in 12th place overall!

Super Group would also like to extend our thanks to MAN Truck & Bus who kindly sponsored the use of a 22 meter tautliner and provided the services of their extremely dedicated and passionate Driver Training & Assessment instructor, Blackie Swart, who went beyond the call of duty to ensure a successful event.

To say that the Sani2c race is nothing short of amazing would be an understatement. It is one of the most popular races on the mountain biking calendar with a long waiting list of cyclists keen to experience it. En route down to the coast, the race descends into the majestic Umkomaas valley with spectacular views and fantastic scenery that is a privilege to behold. At Super Group we look forward to being involved in the 2012 event and beyond.

If you are a Super Group customer and would like to participate in the 2012 event please contact Charlotte at marketing@supergrp.com

To view the official Sani2c race website visit www.Sani2c.co.za

23/05/2011

Super Group upbeat prior to release of 2011 Final Results

Super Group is scheduled to release its financial results for the year ending 30 June 2011 on or about the 16 August 2011. In terms of the JSE Limited Listings Requirements, issuers are required to publish a trading statement as soon as they are satisfied that a reasonable degree of certainty exists that the financial results for the period to be reported upon next will differ by at least 20% from those of the prior comparative period.

Global economic conditions are gradually improving which will assist the industry sectors in which Super Group operate. The Group expects the modest firming in sales volumes experienced during the first six months ended December 2010 to continue. This improvement in sales, the impact of the cost cutting measures taken during the previous financial year and savings in net finance costs will result in a satisfactory growth in earnings for the year.

Shareholders are advised that Super Group is expecting to report a consolidated net profit after taxation for the year ending 30 June 2011 of between R342 million and R374 million, resulting in earnings per share ("EPS") (including losses from discontinued operations) of between 9.5 cents and 10.5 cents, and a headline earnings per share ("HEPS") of between 10.0 cents and 11.0 cents.

This compares with a consolidated net profit after taxation of R169 million which equated to an EPS of 6.4 cents and HEPS of 5.8 cents for year ended 30 June 2010. The EPS and HEPS in the current year have been impacted by the increased weighted average number of shares in issue resulting from the rights offer undertaken by the Company in November 2009. The result from discontinued operations is expected to be breakeven or marginally positive.

Note that the financial information on which this trading statement is based has not been reviewed or reported on by Super Group's external auditors.

Source: JSE News Service (SENS)

13/04/2011

Super Group sells stake in SG Fleet

Supply chain management company Super Group has sold a R273m shareholding in its Australian subsidiary, SG Fleet, to Champ Ventures (CV Funds), an Australian private equity firm specialising in growth companies in Australasia.

The transaction will see funds managed by CV Funds and some of SG Fleet’s senior management team become shareholders in the company, and bring local funding and expertise to its activities in the Australian market.

"I think what they are doing looks sensible given that this business is so far away," Gavin Wood, chief investment officer at Kagiso Asset Management, said yesterday. "They have kept control of the business, but enabled local partners and management to have a significant stake."

Under the agreement, CV Funds will buy 45,22% of the JSE- listed company’s redeemable preference shares, and 41,36% of ordinary shares in the subsidiary, through a new holding company, SG Fleet Holdings. SG Fleet managers will acquire another 8,54% of ordinary shares.

SG Fleet provides fleet management and salary packaging services to corporate and government clients across a broad range of industry sectors in Australia, New Zealand and Britain, including motor dealers, manufacturers and suppliers.

More than R100m of the transaction will be retained as cash in Bluefin Investments, a Super Group subsidiary registered in Mauritius, as reserve capital for future investment in SG Fleet. Super Group will keep about R14m.

Super Group said the transaction causes a 4,3% reduction in pro forma earnings per share for its unaudited interim results for the six months to December last year, but the enhanced growth prospects for SG Fleet outweighs short-term dilution of the business. Revenue for the period rose 10% to R3,8bn, with operating profit up 19% at R298m.

Profit after tax rocketed 112% to R173,3m, with headline earnings of R149,2m.

Source: Business Day

06/04/2011

FleetAfrica wins 2011 Oliver Empowerment Award

FleetAfrica achieved double acclaim and stamped its mark of empowerment success at the 2011 Metropolitan Oliver Empowerment Awards when the company was recognised as the Top Empowered Company in the Transport category and CEO, Kamogelo Mmutlana, was voted the Top Black Businessman.

The 10th annual Metropolitan Oliver Empowerment Awards (the ‘Olivers’), the mark of BEE distinction for transformation leaders, was held at the Sandton Convention Centre on 24 March 2011. The awards were bestowed by guest of honour and keynote speaker Mr Thembelani Nxesi, Deputy Minister of Rural Development and Land Reform, before an elite audience of political and business leaders. 

FleetAfrica was a big winner on the night picking up two awards and closely edging out parent company Super Group, a fellow finalist, as the Top Empowered Company in the Transport sector. It was a particularly pleasing evening for FleetAfrica CEO Kamogelo Mmutlana who capped off his own company’s success with further recognition from his peers after being named the Top Black Businessman for 2011.

The awards mark FleetAfrica’s rapid empowerment progress with the company improving its B-BBEE ratings consistently over the years from a level three to a level one contributor in 2010, with a 135% procurement recognition. Furthermore, FleetAfrica was ranked the number one company in the fleet management sector of the TOP500 Companies award in 2010.

Mmutlana says FleetAfrica is a specialised fleet management company at the forefront of the full service leasing industry in South Africa. “We manage some of the largest fleets in the country for government, parastatal and private-sector companies. We currently have more than 46 000 vehicles under management, ranging from motor cycles and cars to materials handling equipment, waste compactors, fire engines, and ambulances.”

Within our first few years of operation we secured the then largest government fleet outsourced contract, City of Johannesburg, as well as some major Parastatal and Blue Chip corporate fleets” said CEO Kamogelo Mmutlana.

Mmutlana informs that FleetAfrica has achieved significant savings and improved service offerings for Government through the management of the largest and second largest government fleet outsourcing contracts to date, being the City of Johannesburg and Eastern Cape Provincial Government (ECPG) contracts.

Mmutlana attributes the company’s success to industry leading technology solutions, focused and committed staff, the ability to leverage group skills, the integrity of the FleetAfrica brand in the industry and the fact the company has a long and successful track record both in the corporate and government sectors.

He says integrity and honesty are the cornerstones of the business, with the company culture based on transparency and mutual respect in its dealings with clients, employees, shareholders and service providers.

Mmutlana attributes the company’s success to industry leading technology solutions, focused and committed staff, the ability to leverage group skills, the integrity of the FleetAfrica brand in the industry and the fact the company has a long and successful track record both in the corporate and government sectors.

He says integrity and honesty are the cornerstones of the business, with the company culture based on transparency and mutual respect in its dealings with clients, employees, shareholders and service providers.

23/02/2011

Super Group turns the corner as profit grows 19%

JSE-listed Super Group on Wednesday said that it was able to move beyond the rationalisation and reorganisation exercise that had been the trademark of the once embattled company from July 2009 to July 2010.

CEO Peter Mountford said that the company had been able to drive down costs, such as eliminating R90-million in operating overheads, after facing losses of more than R1-billion.

“Our focus is on the sustainable growth of our business.”

Mountford said that the reorganised Super Group had as its core the supply chain and mobility businesses, with the troubled industrial products division eliminated.

With a strict focus on cost containment remaining, the group was now looking at expanding its operations through strategic acquisitions in its fields of core competence, as well as in synergistic areas.

It also wanted to restore its credibility through delivering a solid financial performance, and through strong corporate governance principles.

Super Group on Wednesday then also reported positive results for the six months ended December 2010, with revenue up 10% to R3,8-billion, compared with the six-month period in the previous financial year.

Operating profit increased by R19% to R298-million, with profit before tax up 123%, to R216-million.

The group generated R534-million in cash during the period.

The group’s dealerships, fleet solutions and supply chain divisions all reported growth in revenue and operating profit. 

Source: Engineering News

23/02/2011

Super Group recovery continues

Global logistics company Super Group saw a further turnaround in fortunes in its unaudited results for the six months ended December 31.

The company said yesterday its core supply chain, vehicle dealership and fleet solutions divisions performed well, despite challenging economic conditions .

"In the last quarter of calendar 2010, we really geared the group up for organic growth. I think we have achieved the turnaround," CEO Peter Mountford said.

The emphasis in the next six months would be on consolidating this momentum, after a prolonged period of restructuring, involving R1,2bn in recapitalisation, a heavy reduction in net debt, and the disposal of numerous assets.

Earnings per share and headline earnings per share cannot be compared with the earlier period because the group issued 2,7-billion shares in late 2009 during its recapitalisation.

The group said it had repaid all its term loans during the period, consolidating gearing at 40% compared with 54% in June.

Mr Mountford said the group would expand into pharmaceutical distribution, and further dry goods transport. 

Source: Business Day

10/01/2011

Super Group sponsors 2011 Subaru sani2c Mountain Bike Race

Super Group has been confirmed as the official logistics supplier to the 2011 Subaru sani2c mountain bike race.

Super Group’s supply chain division will be responsible for managing all transport requirements during the event. This includes transporting competitors’ bikes to the official starting point in Underberg as well as ensuring that each competitor’s gear is safely delivered to the staging point at the end of each day of the three day event.

Super Group has committed to making 10x8 ton trucks available for the event and will be supplying a team of 10 drivers and 5 logistics coordinators to ensure that everything runs smoothly.

The Subaru sani2c takes place from 18-21 May 2011 and is the world’s largest fully serviced Mountain Bike Stage Race. 650 teams will contest the 2011 event which starts in the Underberg and finishes at Scottburgh on the South Coast. The Subaru sani2c is one of the most popular events on the cycling calendar has been consistently awarded the status of “Best Cycle Race of the Year”. 

Visit the official sani2C race website here

17/09/2010

FleetAfrica No 1 in fleet sector of Top 500 Companies

FleetAfrica has been ranked number one in South Africa in the Fleet Management sector of the Top 500 Companies.

The Top 500: South Africa's Best Managed Companies is a leading B2B annual publication which reviews thousands of South African companies, both listed and unlisted, on the basis of a critical set of performance criteria rather than purely on quantitative financial data. These results are measured against independently accredited research and focus on three key areas of business performance:

Financial Performance - including factors such as turnover, growth, profitability and productivity;
People Development and Human Resources - incorporating BBBEE ownership and equity, employment equity, skills development and gender empowerment;
Accreditations and written company policies - incorporating ISO accreditations, industry related accreditations, written policies for HIV/Aids, environmental & other governance related issues.

FleetAfrica is proud to have achieved the number one ranking in the Fleet Management sector of the Top 500 Companies.

About FleetAfrica
FleetAfrica is a leading provider of fleet solutions with a reputation for market leading skills in the management of both commercial and specialised fleets. FleetAfrica manages a diverse range of fleets for both government and corporate entities helping organisations to improve efficiencies, free up resources and achieve significant cost savings. For more information visit http://www.fleetafrica.com or email  neels.grobler@fleetafrica.com

01/06/2010

Partnership enhances mining supply chain

Broad-based supply chain management company Super Group has been appointed as the sole logistics service provider for mining equipment and services provider Sandvik Mining and Construction (Sandvik).

The contract includes the management of Sandvik’s outbound national distribution, as well as its cross border deliveries to Botswana and Namibia, reports Sandvik Regional Logistics Manager, Rodger Winter.

“Currently, Super Group covers over 5,7-million kilometres a year distributing Sandvik’s products to more than 70 delivery points across Southern Africa. The goal is to ensure that Sandvik’s customers receive the right parts, at the right time, in the right condition, all in a cost-effective manner,” says Winter.

He explains that, through close cooperation between Super Group on-site staff and Sandvik staff, together with a pool of emergency vehicles that are used when required, the efficiency of deliveries has been increased, enabling Sandvik to eliminate unnecessary transport costs.

Further, as strategic partners, Sandvik and Super Group have designed ‘milk-run’ deliveries to Sandvik’s clients from its main warehouse in Jet Park, Johannesburg, and its satellite branches in Rustenburg and Burgersfort.

“Other value-adding initiatives currently being used or in the process of being developed, include real-time proof of delivery (POD) management, POD’s available electronically, full supply chain visibility, product track and trace, live vehicle tracking, delivery process optimisation and client communication,” says Super Group’s Jonathan Fitzpatrick.

This is achieved through advancements in Super Group’s service delivery, such as the My Dashboard system, a Web-based tracking system that enables Sandvik to track the delivery progress of orders and view electronic PODs.

Green Fleet is another system soon to be tested. It will allow Sandvik to view live POD signature information.

“The success of these initiatives has resulted in a customer service level in excess of 99,5%, while at the same time ensuring effective cost control and management,” says Fitzpatrick.

He says that challenges faced by the logistics industry include the increasing fuel price and strikes at mines, which cause mining operations to close, making the delivery of goods impossible. Poor road infrastructure and conditions, such as potholes, cause extra wear on tyres and vehicles; and the possible toll fee charges on highways have also put the industry at a disadvantage.

Fitzpatrick adds that the introduction of administrative adjudication of road traffic offences (AARTO) could hold potentially negative consequences for the logistics field. AARTO involves the implementation of a points system by the traffic department that could result in a driver’s licence being suspended for three months or more.

“In addition, many of the mines we service are in remote areas, resulting in problems with animals on the road slowing down vehicles, while the recession has caused certain mines to close shafts and reduce their productivity,” concludes Fitzpatrick.

11/04/2010

Super Group wins Metropolitan Oliver Empowerment Award

Super Group has been recognised as the Top Empowered Company in the Transport sector at the ninth annual Metropolitan Oliver Empowerment Awards. This is the second year in a row that the company has received this award.

Companies have their Broad Based Black Economic Empowerment (BBBEE) compliance measured annually and expressed in terms of one of eight recognition levels, with a Level 8 contributor being the least compliant. Super Group is rated as a Level 3 BBBEE contributor. This means that customers are entitled to claim 110% of their expenditure with Super Group as BEE procurement spend.

The improvement in Super Group’s BBBEE rating was largely achieved due to the group’s continued focus on Enterprise Development and Skills Development across the organisation.

This comes on the back of the group’s encouraging interim results and signs of a turnaround at the company after a difficult year of restructuring and consolidation. A new management team is on board led by CEO Peter Mountford who has been responsible for guiding the business through this transitional period.

“Super Group has always led the way in promoting Black Economic Empowerment within our industry,” said Peter Mountford, CEO of Super Group. “We are committed to the BEE values that we uphold and are proud to once again receive recognition via the prestigious Metropolitan Oliver Empowerment Awards.”

01/03/2010

Appointment of Colin Brown as CFO

Super Group is pleased to announce the appointment of Colin Brown to the Board as CFO with effect from 28 February 2010. Colin is a Chartered Accountant and has an MBL from the UNISA School of Business Leadership.

Colin has provided support services to the Group`s treasury activities since June 2009. Prior to this, Colin was CFO and a member of the board of Celcom Group Limited, a business in the mobile phone industry and previously listed on the JSE`s AltX.  

Colin has also held the position of Finance Director at EDS Africa Limited, and of Fujitsu Services South Africa, both multi-national companies in the business of Information Technology services.

02/04/2009

Super Group recognised as Transport Sector’s Most Empowered Company

Every year, the Financial Mail in partnership with Empowerdex (an economic empowerment rating agency), conducts a survey measuring the BEE credentials of companies listed on the JSE.  

The results of this year’s survey were published in a supplement to the April 3, 2009 edition of the Financial Mail magazine.

According to the Financial Mail “Long before BEE became popular, Super Group was already driving ahead with empowerment”.  The article goes on to say that; Super Group has a long record of embracing empowerment in various forms. And that partly explains why the company is the most empowered listed transport and logistics provider in the 2009 Top Empowerment Companies (TEC) survey. This year, the company's overall empowerment score is 65.09%

Super Group's ownership score is 17.74%.  Its nearest rival in the Transport Sector, Imperial, scored 15.93% while the next three entrants in the Top Five have an ownership score ranging from 2 to 7 points.

This is the second consecutive year, and fourth time in five years, that Super Group has claimed the title of Transport Sector’s most empowered company.

20/03/2009

Scania SA partners with Super Group

Supply Chain’s Automotive business has landed the Scania account effective 2 January 2009. The contract involves managing the total outbound distribution of parts and accessories to Scania dealers as well as all inter-dealer deliveries.

Super Group’s relationship with Scania started in 1999 when the Response Couriers business unit started handling the same day deliveries for Scania. Working closely with the client we have built this relationship up to the point where Scania has now entrusted us to manage their entire outbound distribution network.

Despite tough economic conditions Scania experienced strong volume growth in 2008, selling over 800 trucks. Their operation is highly service orientated and they have recently focused on expanding their ‘support hub’ and local dealer network while at the same time strengthening their support to dealerships in sub-Saharan Africa. Forty percent of Scania South Africa’s volume is now exported into Africa where Scania is the top seller in the heavy and extra-heavy truck arena as well as in the passenger bus market.

A key factor that helped Super Group secure the business was the impressive technology platform, My Dashboard, which was developed in-house. This web-based tracking system enables Scania management and dealers to track the delivery progress of orders and even view the electronic proof-of-delivery once completed.

The My Dashboard website has been customised and branded specifically for Scania with permission-based access allowing the client to determine the individual user’s level of access. It is a powerful, value-added tool which Scania is able to offer its dealer network, allowing them not only to track order progress but also place inter-dealer collections and notify Super Group of any discrepancies such as short or damaged items. This ensures fast, accurate billing and improved customer service.

The team consists of an account manager, supervisor and six operational staff who will be responsible for the checking, packing and dispatching of parts. Super Group has further been tasked to manage the inbound process and receiving area. "We have enjoyed a successful working relationship with Super Group for several years now and we have been impressed with the new technology enhancements and innovation that they have introduced to our supply chain. It was an easy decision to partner with them for the management of our outbound distribution," says Scania National Parts Manager, Theunes van der Westhuizen.

05/03/2009

Moving the Gautrain

Following a specialised construction and assembly process in a United Kingdom workshop, the first 15 Gautrain rail cars finally started the long journey home.  

Micor, part of Super Group’s Supply Chain division, in conjunction with Agility (our overseas logistics partner) secured the contract to ship these locomotives from Derby, via Immingham and Antwerp to Durban.  

The first two completed rail cars arrived in Durban harbour on 29 November 2008, with a further two on 8 December. After carefully off-loading each rail car which measures 21 metres in length and weighs 46 tonnes they were transported, by Micor, as an abnormal load to the Gautrain’s depot near Midrand.

The 600km journey took 3 days to complete. Once in Midrand, each rail car will undergo extensive quality and safety testing, including 3,000 km of test running in the standard four-car train set configuration on the Gautrain test track. The body shells and components for the remaining 81 rail cars are simultaneously being “flat packed” into crates and shipped, by Micor, to South Africa for local assembly by Union Carriage in Nigel.

05/02/2009

VSc’s technology earning international success

VSc Solutions has been contracted by the BOC-Linde Group, an international gas group, to roll out its award-winning transport management technology in nine South American countries. VSc Solutions has also just won a contract to manage the transport systems at the East African operations of Lafarge Cement. "These multi-million rand international successes prove once again that South African technology can compete with the best in the world," said David Levin, CEO of VSc Solutions. “Our systems are succeeding internationally and have established VSc Solutions as a global player.”

VSc Solutions, part of the Supply Chain division, has operations in South Africa and the UK with global contracts stretching from Asia-Pacific to South America. It specialises in providing organisations with transport management programmes, warehouse management systems, supply chain consulting and electronic data interchange (EDI).

“Our focus is on taking cost out of the business by increasing efficiency, reducing time and travel distance and improving service levels. Especially in tough economic times such as at present, managers appreciate applications that can contribute millions to a company’s bottom line.

"BOC-Linde looked at how we were helping their South African operation to plan safe and secure routes, to monitor driver behaviour, route timings and vehicle location, and to give customers accurate and updated information on delivery times. We were then asked to tender for a global roll-out of this process, and we won the tender against competition from other international companies.  

"They plan to apply VSc’s transport management technology in 17 countries. The South American contract is the second stage of the global rollout after the UK and Asia Pacific, with North America, Russia and China still to follow. We have already installed the system in over 1 000 BOC-Linde vehicles in the UK and Asia Pacific, and will extend this by a further 300 vehicles in South America.” Levin said.

The East African contract with Lafarge Cement involves an extensive transport management programme which includes vehicle tracking, route planning and monitoring of the plan versus the actual delivery performance. "In implementing VSc’s technology, Lafarge was able to increase visibility of their vehicles once they left the yard. This is a challenge especially as their depots are widespread across Kenya, Tanzania and Uganda with deliveries sometimes taking up to a month to complete. Greater visibility of vehicle location, route adherence and time between stops was critical to monitor efficiencies as well as the obvious security and safety concerns when operating in this region," said Levin.  

This award winning transport management technology was developed in South Africa with funding from the Department of Trade and Industry under a programme to support innovative technology that will produce foreign currency earnings for the country. At the end of October 2008, VSc Solutions received a technology award from the DTI, based on a three-year assessment of the impact of an optimised distribution system and supply chain efficiencies for a number of South African businesses, including a food and beverage distributor and one of South Africa’s largest dairy companies.

"We and the clients measured the efficiencies achieved, which included improved service levels, reduced transport fleets and more efficient vehicle use, and huge savings in supply chain costs. We are extremely satisfied with the results to date and are proud to be recognised by the DTI for our contribution to improving South Africa’s reputation as a leader in world class technology and innovation. The success of this project can be measured by the fact that VSc’s route compliance system is now operational in over 10 countries and has helped us turn our mobile business into a global player,” Levin said.

10/01/2009

Super Group opens terminal in Maputo

In December 2008 TAL (Trans Africa Logistics), part of the Supply Chain division, opened a terminal in Maputo capable of handling bulk and containerised cargo for both the export and import market. The terminal is serviced by a railway line directly from the Port of Maputo, as well as the main line from Zimbabwe/Zambia.

An arrangement with CRM, the Mozambican railway service, ensures two shunts per day from the port. Empty containers are railed to the bonded area, offloaded using specialised container handling equipment, filled and then re-loaded onto trains and transported back to the port for export. The terminal also has good road access and customs officials are on site to handle inspections and clearances of both general cargo and motorised vehicles.

Super Group is one of the loyal founding members of the Maputo Corridor Logistics Initiative (MCLI) and this venture is affirmation of our commitment to job creation, more efficient service and economic growth within the region.

10/07/2008

Mondi recognises Super Group’s Freight business unit as the ‘Supplier of the Year’

The ninth annual Mondi Supplier Awards, which recognise Mondi’s top suppliers, took place at the Wanderers Club on Tuesday, 10th June 2008. Awards were presented in the following categories: SMME suppliers, support and related service suppliers, supply chain suppliers and strategic commodity suppliers. Supply Chain Partners’ Freight business unit was awarded the coveted title of the “Supply Chain Supplier of the Year”.

According to Mondi, “Super Group provides unwavering commitment to the quick and reliable fulfilment of their delivery promise. Moreover, they have achieved Road Transport Management System (RTMS) accreditation and notably reached a level four BEE status this year, putting them amongst just 24 companies in South Africa to have achieved this. In addition, they have created a successful owner / operator scheme, built specialised lightweight paper trailers capable of carrying 37 tons and also built specialised pulp trailers designed to optimise pulp payloads at 41.4 tons per load.”

Congratulations to everyone at the Freight business unit. This award is a great achievement and gives fantastic credence to the group’s supply chain competencies and capabilities.