OneLogix maidens in line with expectations

By Iain Scott, ITWeb group consulting editor

Johannesburg, 22 Aug 2001

Supply chain logistics fulfilment group OneLogix has posted maiden annual results in line with expectations, and is forecasting continued organic growth for the future.

OneLogix reverse listed into Venmil with effect from 31 May last year, and CEO Tony Wiese says the transformation of the group from a cash shell to a fully operational supply chain logistics provider has been a success.

OneLogix operates through four business divisions: ThinkLogix (procurement management, logistics consulting and IT solutions), GoLogix (traditional third-party logistics services), DotLogix (fulfilment requirements of business-to-business and business-to-consumer e-commerce), and DirectLogix (PostNet counter network).

"Our integration of new economy expertise with physical logistics, and distinctive access to the PostNet retail counter network, distinguish us on the supply chain logistics market," Wiese says.

"And the managed fleet that underpins our real world logistics capability means that we do not have the burden of assets and debt typical of traditional transport companies," he adds.

"This is an exciting blend of operations, as we will see our more established businesses sustain their revenue and earnings streams going forward while PostNet and our start-ups drive bottom line growth."

During the year the group acquired auto logistics company Vehicle Delivery Services and entered into an ongoing customer referral agreement with Pro-Freight Express, a local and international parcel distributor.

It has also entered into equal partner joint ventures with The IQ Business Group, Francotyp Postalia SA, and Independent Online.

Subsequent to the year-end, Wiese says, the group returned R54 million to shareholders following its pro-rata share repurchase.

"The buy-back will improve future earnings per share and even more strongly incentivise management by enabling them to hold a greater stake in the group."

Wiese says the group expects sustained organic growth. It will also continue to grow acquisitively, which he says is to enhance its service range and improve critical mass in existing services.

The OneLogix share, which rose 4c to close at 65c on the JSE yesterday, was trading at 66c this morning. It has climbed 16c since Tuesday last week.