SIMON BROWN: I’m chatting now with Ian Lourens, CEO of OneLogix. Results are to year-end May. Revenue is up 24%, Heps down 69%, tangible internet asset worth 336.70 cents.
Ian, I recognize the early morning time. This is [for] the year to finish May. Included in that was clearly the horror strikes and violence in KZN again in July final year. Since we final chatted, which I suppose was about six months in the past, have you ever had any extra of these kind of truck-burnings, employees below risk and even below threat of life?
IAN LOURENS: Yeah, we’ve had fairly sporadic incidences, Simon, many of which don’t even attain the press. It’s not solely on the N3, it’s kind of unheralded violence on by-roads as effectively, mainly. So it’s one thing we’re getting used to; it occurs frequently.
SIMON BROWN: And one thing we want deeply we weren’t getting used to.
IAN LOURENS: Absolutely.
SIMON BROWN: You additionally had a freak hailstorm in September down in your Umlaas [facility], which is about 40 or so kilometres exterior Durban on the N3.
IAN LOURENS: Correct. It was a main occasion for us. It was actually a freak occasion. Hailstorms are simply not anticipated there in any respect, and positively our insurance coverage firm, with all of the assets they’ve had in phrases of analysing what cowl is required, didn’t count on that as effectively. The extent of that injury actually translated to about eight cents per share in phrases of our earnings metrics, the EPS metrics. So it was substantial. That alone has accounted for a main portion of the lower of our efficiency. It was a once-off freak occasion, and certainly to goodness just isn’t going to occur once more.
SIMON BROWN: The concern there’s, as I perceive it, that you simply clearly have insurance coverage however you’ve gotten insurance coverage for large occasions. And this was like, ……2:16 vehicles being hail-damaged as soon as earlier than, and it’s one of these bizarre issues the place it’s small injury, nevertheless it’s nonetheless injury that must be mounted. And it’s not a low cost course of.
IAN LOURENS: Correct. At the very time it occurred, we have been busy transitioning a couple of ships that had landed. So we have been busy getting [the vehicles] below storage and getting [them] off the vans and issues like that, so it hit us at additionally an unlucky time. So small injury, however to a massive quantity of motor vehicles – and that’s the way it added up.
SIMON BROWN: Your Umlaas Road – that’s your items supply kind of storage facility. How is automobile supply? We’ve had the problem, clearly, of lockdown. We couldn’t go and purchase a automobile, even when we needed. And then there’s been the chip scarcity, which has meant provides of new autos have been nearly unimaginable – or very troublesome – to seek out. Are you beginning to see that ease up? Are you seeing extra throughput coming in?
IAN LOURENS: Yes, we’re. It’s beginning to regularise itself to kind of pre-pandemic ranges. Regarding the truck market, by the best way, that’s just about again to pre-pandemic, however motor autos I believe most likely have nonetheless six to possibly 12 months to go earlier than we see a return to normality. But sure, we’re definitely seeing it.
SIMON BROWN: Okay. So simply beginning to come again. And Durban port – clearly a lot of these autos are going through Durban port. They’ve bought the particular terminal there as you head out. How’s that working? We’ve had heaps of considerations round Durban port. I’m going to be chatting with Grindrod on Monday. Of course, they’re up in Maputo. How’s the port working?
IAN LOURENS: The port does effectively, regardless of itself. That’s variety of a metaphor for South Africa as effectively, isn’t it? It operates in addition to it ever has, however there are structural issues there. And, by the best way, we’re coping with the port in addition to with prospects to try to alleviate a lot of these bottlenecks – and fortunately it’s figuring out fairly effectively. So yeah, it had a main drawback final year, as you bear in mind, when there was a cyber assault on Transnet’s methods, and that additionally took fairly a whereas to work its method through the system. But sure, it’s enterprise just about as regular as we’ve bought used to it.
SIMON BROWN: Obviously you do a good bit inside South Africa. You additionally do a good bit of cross-border into some of the neighbouring states. In truth, you really go even additional north in some situations. How has the cross-border exercise been?
IAN LOURENS: It has elevated fairly considerably for us throughout this year, which we’re more than happy to say. You’re clearly going to ask me the rationale for that. There are a quantity of causes, as a result of we seeing it throughout all the assorted companies that we’ve got that function into in that market. So it’s motor vehicles and vans, and it’s agricultural product, it’s common freight. It has improved. So we’re doing pretty effectively. Yes, we’re pleased with that scenario.
SIMON BROWN: And your Agritrans? You do transporting of agricultural tools. I do know some listeners may suppose, hey, what? But these are giant-sized mix harvesters, and also you’re doing storage and meeting and the like. We’re definitely seeing agri costs excessive, farmers maybe doing a bit higher. That’s that division.
IAN LOURENS: Yeah, it’s doing effectively. We transfer agricultural product in addition to agricultural tools. So Agritrans is agricultural tools, as you stated. And sure, we’ve had a good year. It’s a complete spectrum of agricultural product; principally tractors, by the best way, but in addition all of the ancillary stuff like mix harvesters and ploughs and that kind of factor. It’s fairly vibrant and the prognosis for a good rain season this summer season can also be wanting pretty good. So we’re definitely holding thumbs for that.
SIMON BROWN: Okay. Some of these costs are down a bit. [I was] chatting with Wayne McCurrie about PGMs a second in the past; costs are down, however they’re nonetheless at good ranges and we’re seeing exercise there.
Jackson is your chilly chain. It’s SA, it’s into Africa. I used to be going to say [it’s] one of your newer ones. What I imply by that’s once we began chatting, most likely 10, 12, 14 years in the past, it wasn’t half of your portfolio. How is that holding up in phrases of exercise?
IAN LOURENS: It’s accomplished effectively. In truth, Jackson is our greatest performer, and that simply offers credence to the truth that the agricultural market is in a good area.
SIMON BROWN: Yes. Last query. You’re below a cautionary for potential de-listing. That’s nonetheless progressing. Any timelines on when it’d conclude?
IAN LOURENS: I’m hesitant to provide you an actual date. We are working fairly exhausting on it. We would really like it to occur sooner relatively than later. It has taken a little longer than we anticipated. But I believe that by the year finish certainly to goodness that is put to mattress.
SIMON BROWN: Okay, we’ll go away that there. Ian Lourens is CEO of OneLogix. I hope whenever you do de-list we will nonetheless chat as a result of we get nice insights into the broader kind of provide chains and the economic system in South Africa, as a result of of course OneLogix is transferring issues from A to B, and that at all times tells you kind of what the exercise is within the broader economic system.
Ian Lourens, OneLogix CEO, I recognize the early morning.
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