Challenging trading conditions and political uncertainty continued to depress trading conditions at transport logistics and mobility company, Super Group.
The group on Monday reported a 27.5% increase in revenue for the six months ended December 31, compared with the same period in 2016, to R18-billion. Operating profit grew by 11%, to R1.14-billion.
“We continue to experience challenging trading conditions with high levels of competition across most of our operations, globally and locally,” said CEO Peter Mountford.
“Political uncertainty regarding the outcome of Brexit and the lead up to the 2019 South African elections have also influenced some of our operations.”
Super Group found itself more exposed to global economic conditions than before, following a two-year period of strategic acquisitions, especially abroad.
Group revenue, for example, benefited from the acquisition of the Slough Motor Corporation dealerships, in the UK, as well as the acquisition of an 88% interest in the Spanish courier company, Ader.
Revenue to December 31 also increased as a result of the inclusion of the Essex Auto Group (UK) and the Western Cape dealerships for the full period, as well as an excellent performance by SG Coal.
Offshore operations contributed 46% of revenue and 62% of operating profit during the period under review.
Looking ahead, Mountford said the European and UK markets seemed to be stabilising, despite the continuing uncertainty regarding the potential Brexit outcome.
“The South African socio-political landscape continues to be challenging, although there is some positive sentiment given the current political changes.
“The South African consumer remains under significant pressure and low growth rates are expected to persist.
“Nevertheless, the group remains cautiously optimistic with regards to the impact of these political changes on the economies in which it operates and expects to further improve operational efficiencies and gain market share in most business sectors over the remainder of the financial year.”