The improvement in earnings was largely the result of a strong performance from its vehicle distribution subsidiary, Vehicle Delivery Services (VDS), supported by robust sales of new vehicles. The National Association of Automobile Manufacturers of SA (Naamsa) reports that 492956 new vehicles were sold in 2010 compared with 395222 the previous year.
OneLogix CEO Ian Lourens says VDS took business away from its competitors in the large truck distribution market.
Bringing in a new management structure has also helped the group. Lourens says it has largely achieved its corporate framework goal while retaining the entrepreneurial energy and drive of the managers whose businesses it bought.
OneLogix has a habit of buying out niche companies that generate a decent amount of cash. Lourens is not saying too much other than that the group is looking for new acquisitions.
It looks like it's on a solid growth track but Lourens is cautious. The latest Naamsa figures indicate the growth in new-vehicle sales is starting to taper off.
And not all of the divisions performed well. Its small business support franchise, PostNet, for instance, felt the effects of a sluggish economy.
At a share price of 130c and a p:e of 6,84, OneLogix looks like a bargain. With revenue of less than R1bn, it might not have the scale to attract some investors but, given its constant performance, it appears to be a solid small-cap investment.
Source: Financial Mail
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