Super Group reports growth of 103% in offshore revenue contribution

Super Group reported a solid set of results for the year ended 30 June 2016 despite the competitive business environment in the geographical locations in which the Group operates. Group revenue increased by 30.9% to R25,9bn from R19,8bn for the year mainly as a result of the commendable performances by FleetAfrica, SG Fleet and Dealerships as well as the inclusion of the results of Allen Ford (UK), SG IN tIME and NLC (through SG Fleet), for the periods previously mentioned. The main reason for the increase of 30.0% in operating profit to R1,952m (June 2015: R1,501m) being marginally below revenue growth, was due to the poor performance by SG Coal in the first half of the year. If SG Coal’s results, part of Supply Chain Africa, are excluded, then the decline of 13.7% in Supply Chain Africa’s operating profit would have been an increase of 3.3%.

Peter Mountford, Group CEO, commented, “We managed to expand our international footprint substantially with the various offshore acquisitions concluded over the past two years and at year end, the non-South African businesses contributed 42% and 60% to revenue and operating profit, respectively. We are pleased to report that the growth in offshore revenue was 103%, operating profit 66% and profit before taxation 52% over the reporting period.”

“Super Group’s borrowings increased by R993m to R1,989m, with R1,479m debt attributable to SG Fleet largely for the NLC acquisition and R906m debt attributable to the acquisition of SG IN tIME, Germany. We concluded a Rights Offer of R900m in October 2015 to part fund the SG IN tIME acquisition and an Accelerated Bookbuild Offer of R360m in December 2015 to bolster the Group’s capital structure following the acquisition of NLC by SG Fleet. As a result of the cash generated within the newly acquired businesses, the Group was able to reduce its total gearing from 31.9%, as at 31 December 2015, to 21.4% as at 30 June 2016”, reported Colin Brown, CFO of Super Group.

Operating cash flow increased by 24.9% for the year to R2,652m with a working capital cash inflow of R245m as opposed to an outflow of R102m in the prior year. As a result, cash generated from operations, after working capital, increased by 43.4% to R2,897m.

Source: Super Group