Supergroup

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