Rail, road and freight transport group Super Group lifted headline earnings per share by 5% from 123,8 cents to 129,5 cents for the 12 months ended March.
This was better than the I-Net Bridge consensus forecast for headline earnings per share of 125 cents.
The group declared a dividend for the year of 37 cents, compared with 32 cents the previous year.
It is the 18th consecutive year that the group has delivered solid growth from operations. Revenue increased 19% to R8,3-billion, and trading income for the year increased 19% to R732-million, resulting in the group trading margins being maintained at 8,7%.
Net profit for the year increased 13% to R395-million.
Operating cash flow before working capital increased by 22%, underpinning the strong trading income growth. The group said the increase in working capital was due to delays in payment on certain fleet contract debtors, higher Retail Supply Chain inventory levels from expansions to the product range, and a change in payment terms for freight-clearing companies.
“Cash was invested to expand the rental fleet, develop a new warehouse park and open new Autozone stores to support the group’s future organic growth.”
Significant investments were made in Fleet Solutions, through the acquisition of FleetAustralia, and the addition of the Mica group to Retail Supply Chain.
In August last year, Super Group concluded one of the most significant black empowerment transactions to date. In terms of this transaction, Peu Group acquired a 25,1% stake in Super Group through a share-for-share swap of its original 30% shareholding in FleetAfrica and a further subscription for Super Group ordinary and “A” ordinary shares.
The balance sheet of the group remains strong. In June last year, Super Group successfully raised a R900-million corporate bond.
“There is no recourse to Super Group and its remaining subsidiaries in respect of the debt portion of the FleetAustralia acquisition. At year-end, Super Group had net cash of R904-million and is well positioned to capitalise on growth opportunities within its various businesses,” the group said.
Looking ahead, Super Group said indications are that the macro-economic environment will remain stable with sound fiscal disciplines and favourable interest rates, while exchange rates remain unpredictable.
It said Super Group should continue to achieve real earnings growth in 2006, driven by improving operational efficiencies in all the businesses; continued market-share growth and improving the supply-chain efficiencies in its retail supply chain business, especially in the Mica business; capitalising on its full pipeline of potential new supply-chain contracts; and other major government fleet and supply-chain outsourcing contracts. — I-Net Bridge