JSE-listed supply chain management and logistics fulfilment services company OneLogix has warned that its interim headline earnings per share will be lower than those of a year ago.
The group has decided to close down the GoLogix Courier division, which continued its poor performance in the six months to end-November.
The division`s poor performance, combined with a general slowdown in trading across the group, was responsible for the lower earnings.
The total cost associated with the closure of the division will be about R5 million.
Some of the closure costs may be recovered through future commissions as the group has entered into an agreement with Supaswift Express in terms of which it will refer the GoLogix Couriers customer base to Supaswift.
OneLogix`s other operations include the new economy-based ThinkLogix, which offers strategic sourcing, logistics consulting, IT logistics solutions and supply chain management. DotLogix is an e-commerce fulfilment operation while DirectLogix focuses on direct consumer fulfilment.
The group has also announced that it intends to raise R10 million by way of a renounceable rights offer of 100 million new shares at 10c a share.
The purpose of the exercise is to repay interest-bearing debt, improve net asset value and pay off vendor obligations that are due and payable.
The rights offer, underwritten by a management-led consortium, is subject to regulatory and shareholder approval.
Corpcapital, which owns more than 46% of the group`s shares, has undertaken in favour of the consortium not to follow its rights. This means its stake will be reduced to about 30% while the underwriters` stake will increase.
Earlier this year the group sold its GoLogix Distribution business to Dieseltrans for about R3 million.
The group`s share price was unchanged at 8c on the JSE by midmorning today.
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