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Road violence bites OneLogix

• Profits could fall as much as three quarters in a sluggish economy

Karl Gernetzky Markets Writer gernetzkyk@businesslive.co.za

Freight and logistics group OneLogix warns its headline profit could fall three-quarters in its year to end-May, hit by a litany of issues, including rising costs, riots in KwaZuluNatal and persistent violence on SA’s roads. Headline earnings per share are expected to fall by between 55% and 75%.

Freight and logistics group OneLogix warns its headline profit could fall three quarters in its year to end-May, hit by a litany of issues including rising costs, riots in KwaZulu-Natal and persistent violence on SA’s roads.

Headline earnings per share are expected to fall between 55% and 75% to as low as 2.8c to endMay, OneLogix said in a trading update on Monday, adding that it had become increasingly costly to conduct a logistics business in SA, primarily due to the inability to recover various rising costs from its value chain.

This trading scenario was worsened by the reduced economic activity during and after the civil unrest in KwaZulu-Natal in July 2021, the group said, and later compounded by the cyberattack on Transnet’s operations which further curtailed the flow of goods.

“The persistent violent protests on SA’s national road network continued to present a serious challenge, while the extensive infrastructural damage caused by flooding in KwaZulu-Natal in April 2022 further aggravated an already strained trading scenario,” the firm said.

OneLogix, which was listed in 2000 on the JSE, where it is valued at R688m, generated R25.2m in headline earnings for its 2021 year, a 38.4% fall from the prior year.

The group was also hit by a hailstorm in September 2021 which damaged passenger vehicles, prompting it to carry the risk for minor repairs.

This incurred an expected claim cost, net of insurance proceeds, of R25m.

“Notwithstanding these considerable headwinds, some of the group’s businesses performed above expectations and on balance, each of the group’s businesses remain well positioned in their respective markets with resilient and innovative management teams together with a strong customer base that will ensure sustainability,” the trading update says.

OneLogix shares ended 7.7% ahead at R2.80 on Monday.

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2022-08-10T07:00:00.0000000Z

2022-08-10T07:00:00.0000000Z

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