2019 Financial Results

Johannesburg, 26 August 2019 – Super Group, a leading transport logistics and mobility group, reported an excellent set of results for the year ended 30 June 2019. Peter Mountford, Group CEO, said: “Given the protracted poor economic climate in South Africa and political uncertainties in the various countries in which Super Group operates, we are pleased with the strong results achieved, which were mainly attributable to the robust performances in the sub-Saharan commodity-facing businesses. The results also reflect solid performances by the industrial, technology, Digistics and vehicle rental businesses in Supply Chain Africa.”

As expected, the Supply Chain Europe operations performed poorly in Germany on the back of a depressed automotive market. SG Fleet’s performance for the year was also under pressure as a result of some of the businesses within this Division having to negotiate a range of external and legislative challenges during 1H2019. Fleet Africa ended the year in a strong position, having secured new Full Maintenance Lease contracts, extended a large existing parastatal contract and concluded its joint venture agreement with the Co-Op Bank in Kenya.

Dealerships SA outperformed the NAAMSA statistics, with Dealerships UK delivering a solid performance despite the ongoing Brexit uncertainty.

In line with the Group’s strategy, several acquisitions were concluded during the year under review. The Group acquired an 80.0% interest in Cargo Works, a specialist overnight cargo business, for R49.5 million effective 2 July 2018, with the results being included in the Supply Chain Africa business segment. Super Group also acquired the minority interest in Legend Logistics for R174.5 million, which resulted in this business becoming a wholly-owned subsidiary. Dealerships SA acquired Orbit Motors effective 1 October 2018 for R1.1 million.

During the year ended 30 June 2019, Super Group’s effective shareholding in SG Fleet increased to 59.2% from 57.0% at 30 June 2018. The increase resulted from Super Group taking up 3,958,732 shares in the Dividend Reinvestment Plan, which amounted to R147.5 million, and purchasing an additional 4 366 928 shares for approximately R106.2 million during the financial year.

Super Group listed R1 750 million of senior unsecured notes, in terms of the company’s Domestic MediumTerm Note Programme, during the financial year to re-finance expensive debt in the United Kingdom, Germany and South Africa.

Group revenue increased by 6.2% to R37.9 billion from R35.7 billion (June 2018) primarily due to the significant volume increase in Supply Chain Africa’s businesses.

Operating profit increased by 7.0% to R2 605.6 million (June 2018: R2 435.5 million), resulting in the Group’s operating profit margin improving from 6.8% to 6.9%. Operating profit before capital items of R68.3 million (June 2018: R38.5 million), increased by 8.1% to R2 673.9 million from R2 474.0 million in the comparable year. The capital items mainly relate to the impairment of the nlc brand in Australia, amounting to R59 million. Net finance costs increased by 4.9% to R346.5 million (June 2018: R330.5 million). Profit before tax is R2 259.1 million (June 2018: R2 105.0 million), an increase of 7.3%.

Both earnings per share and headline earnings per share increased by 12.5% to 360.8 cents (June 2018: 320.8 cents) and 373.8 cents (June 2018: 332.2 cents), respectively.

Colin Brown, CFO of Super Group, stated: “The net debt position at 30 June 2019 was R3 042.3 million, resulting in a net debt to equity ratio of 24.1%, an improvement from the 25.1% at 30 June 2018. The net asset value per share increased by 12.3% from R27.05 at 30 June 2018 to R30.37 at 30 June 2019. Super Group invested R2.1 billion in net additions and acquisitions to ensure future growth for the Group.”

Subsequent to the year end, Super Group acquired a 65% interest in Lieben Logistics and a 51% interest in GLS Supply Chain Equipment (Pty) Ltd effective 1 July 2019, for purchase prices of R498.8 million and R96.3 million, respectively. These acquisitions will form part of the Supply Chain Africa segment. Supply Chain Europe’s inTime acquired an 80% interest in Trans-Logo-Tech effective 5 July 2019 for R184.3 million.

“Super Group is expecting market conditions, both locally and globally, for the year ending 30 June 2020 to be similar to the past financial year. Despite the tough trading environment, Super Group will continue to maximise and explore business opportunities, especially in the consumer distribution and FML environment, as well as product and technology innovation to unlock shareholder value. We remain committed to be an innovative, integrated mobility solutions company. It forms the basis of Super Group’s growth trajectory,” concluded Mountford.