Though transport and logistics provider Super Group reported flat full-year earnings, it has made progress in streamlining operations and improved its financial position.
Headline earnings per share (HEPS) decreased 1.2% to 239.8c for the year ended June, while earnings before interest, tax, depreciation and amortisation (ebitda) were 2.4% lower at R3.68bn.
Revenue decreased 1.4% to R44.51bn.
Super Group said its strategic execution on a number of corporate actions had delivered significant value to shareholders, marking a transformative year for the group.
Divestments, including the sale of SG Fleet and the inTime business in Germany, streamlined operations and improved the group’s financial position.
“This decisive repositioning strengthened Super Group’s balance sheet, reduced debt and set the stage for sustainable, scalable growth across its core Southern African and international markets,” it said on Tuesday.
The sale of SG Fleet unlocked R7.47bn in capital and enabled the distribution of a special dividend of R16.30 per ordinary share — amounting to R5.54bn — to shareholders, alongside a R1.96bn repayment of interest-bearing debt.
This capital redeployment dramatically improved the group’s balance sheet, reducing net gearing from 136.3% to 20.6% and improving net debt to ebitda from 2.96x to 0.75x.
About 60% of Super Group’s operating assets now lie in its African supply chain operations. The rest is split between SA and UK car dealerships, a smaller African fleet leasing business and loss-making European supply chain operations.
Super Group said despite difficult trading conditions, its performance reflected an ability to adapt to continued global uncertainty.
“While macroeconomic and infrastructural challenges persist within the commodity businesses, in particular, a focus on service excellence and on the strategic deployment of capital into high growth opportunities, positions the group optimally to navigate these challenges,” it said.
Despite the prevailing difficult trading conditions in both Southern Africa and Europe, Super Group expects to perform at improved earning levels in the forthcoming financial year.
“The potential improvement in comparative performance does partially rely on an enhanced performance from the Southern African commodity supply chain businesses, in relation to copper exports, in particular,” it said.
The benefits of rationalising the dealership operations and cost structures across the UK should also contribute to a better earnings performance, it said.
The Consumer Supply Chain and Fleet Lease businesses were expected to perform well, mainly as a result of a number of new customers and expanded service offerings, the company said. The SA Dealership operations are expected to maintain their strong performance, with revenue growth anticipated from the expanding network of emerging brands.
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