Super Group Delivers an Outstanding Performance and Declares Dividend

Despite ongoing macroeconomic challenges and tough trading conditions in several key markets and industry sectors, Super Group reported an outstanding set of results for the year ended 30 June 2021. Group revenue increased by 14% to R39.5 billion and operating profit increased by 44% to R2.3 billion.

“The resilient Group trading performance was complemented by excellent net cash generated from operations of R4.8 billion which was 11% up on the robust performance of the previous financial year,” explains Group CEO, Peter Mountford. This performance is reflective of the decisive and swift actions undertaken by our management teams in the early stages of the pandemic to ensure the ongoing relevance and competitiveness of all operations in the face of volatile markets,” expands Mountford. “It also testimony to the Group’s strong balance sheet and its unerring focus on effective cash generation and management of working capital.”

Businesses across the Group performed strongly to achieve this outcome, despite the continuing impact of the Covid-19 pandemic and related lockdowns in many of the economies in which Super Group operates. The Group’s South African, European and UK operations were most severely impacted by lockdown regulations and restricted trading conditions within a number of economic sectors.

“The pandemic has in many ways been a wake-up call in terms of the fragility of global supply chains, revealing many long-standing supply and demand related vulnerabilities and risks,” says Mountford.  “Covid-19 has undoubtedly demonstrated that operational reliability and cost efficiencies are the foundations of corporate performance.” For Super Group, the pandemic necessitated a thorough strategic review of all businesses and the rightsizing of operations to ensure that business models remain relevant to fluctuating levels of demand. The benefit of these initiatives manifested strongly in the Group’s European and South African supply chain businesses. The Group’s dealerships businesses in South Africa and the United Kingdom also demonstrated a significant recovery.

Following an announcement made in March this year with regards to the LeasePlan ANZ acquisition, SG Fleet have subsequently advised that all conditions precedent to the acquisition have now been met. It is anticipated that the effective date of the transaction will be 1 September 2021. “The purchase consideration for this significant acquisition is AUD387.4 million or R4.1billion,” says Mountford.  Creating excellent growth opportunities for SG Fleet, LeasePlan ANZ is a leading provider of fleet management and leasing services in Australia and New Zealand to both the public and private sectors, also offering novated leasing services in Australia.

The past twelve years have seen shareholders equity grow from R1.2 billion at June 2009 to the current level of R13.6 billion, which represents a compound growth rate of 22.6% per annum. During this time, financial leverage – represented by interest bearing debt to shareholders funds declined from 316.9% to 17.3% as at June 2021. On the back of this stellar performance, Super Group has accordingly re-implemented a dividend payment policy and declared a dividend of 47.0 cents per ordinary share for the year ended 30 June 2021,” reveals Mountford.  This dividend represents a new commitment and era in the regeneration of Super Group and reflects the diligent re-building of the Group over the past twelve years,” he concludes.