Super Group delivers the goods

JSE-listed supply chain management company Super Group's share gained almost 2.4%, to close at R12.90 on the JSE yesterday, as investors reacted to a strong set of full-year financial results.

Positive forward-looking comments by CEO Larry Lipshitz also impressed investors, who traded about 3.8 million shares during the day. The counter has gained 17% over the past year.

While the bulk of the group's business involves such aspects as warehousing and distribution, it is also active in the provision of IT services to its customers. Among other things, the group's supply chain management business (which accounts for 35% of group revenue) includes network and channel design, supply chain technologies, and systems integration and supply chain visibility. Fleet management services include call centre management.

Super Group, which has a market capitalisation of about R5.2 billion, achieved growth in most of its businesses, says CEO Larry Lipshitz. This resulted in a 15% increase in consolidated revenue for the year to June from the pro-forma 12 months to June last year.

The comparative figures on the group's financial statements are for the 15 months to June last year, as Super Group changed its year-end.

Improved margins saw the group post a 42% increase in operating profit, compared with the pro-forma prior-year period.

"The technology consulting business continued its strong performance with a number of innovative and integrated solutions being deployed in various industries and countries," says Lipshitz.

"Super Group is Africa's logistics giant and we will continue to expand our logistics capability on the continent. The expected contribution from industrial products, retail supply chain and new supply chain initiatives, as well as a revival of market sentiment in Africa, will provide added impetus to our future earnings," he says.

Lipshitz says the group expects to achieve real earnings growth in the current financial year.