"We are pleased with the operating cash flow having increased by 19.3 percent," says Super Group CFO, Colin Brown.
Leading transport logistics and mobility group, Super Group, has reported a satisfactory set of results for the six months ending 31 December 2017. Group revenue increased by 27.5 percent to R18 billion, while operating profit increased by 10.8 percent to R1 149.2 million. Earnings per share and headline earnings per share increased by 6.6 percent to 152.9 cents from 143.5 cents (Dec 2016), and 7.7 percent to 155.1 cents from 144.0 cents (Dec 2016), respectively.
Colin Brown (pictured), Group CFO, and triple winner of the CFO Awards said:
“We are pleased with the operating cash flow having increased by 19.3 percent to R1 688.1 million. Super Group’s gearing ratio of 31.6 percent was at a similar level to the year-end ratio with the net asset value per share increasing by 4.1 percent for the period to 2 492.5 cents from 2 394.1 cents at 30 June 2017.”
According to Super Group, the increase in group revenue was predominantly as a result of the acquisitions of the Slough Motor Corporation (SMC) dealerships in the UK and SG IN tIME's acquisition of an 88-percent interest in Spanish courier company, Ader. Revenue also increased as a result of the inclusion of the Essex Auto Group and the Western Cape dealerships for the full period, as well as an excellent performance by SG Coal. The main reason for the growth rate in operating profit being lower than the revenue growth rate is the acquisition of lower margin businesses, namely SMC and Ader.
Peter Mountford, Group CEO, said:
“We continue to experience challenging trading conditions with high levels of competition across most of our operations, globally and locally. Political uncertainty regarding the outcome of Brexit and the lead up to the 2019 South African elections have also influenced some of our operations. Following a two-year period of concluding strategic acquisitions, Super Group’s results reflect the geographical diversity, with our offshore operations having contributed 46 percent of revenue and 62 percent of operating profit.”
Mountford added that the company remains committed to its strategy of being an innovative, integrated mobility solutions company, which he says is integral to growing and expanding Super Group's core businesses.