super group
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Super Group focus retail
South Africa Magazine profiles Super Group, the global logistics and supply chain management company.
By Ian Armitage
T
ransport and logistics firm Super Group is a darling of the JSE at present. Just a few years ago, however, it seemed it was all over - its share price had plunged following botched efforts to expand rapidly into Africa, which necessitated a R1.2 billion recapitalisation to help it avoid bankruptcy. The restructuring saw it dispose of non-core assets such as Mica stores. Things have certainly changed. Super Group is, well, much more super. Despite the highly competitive economic and trading environment, it is performing very well – the transport and logistics firm saw significant earnings growth in the six months ended December, thanks largely to operations in Africa. Operating profit was up 36 percent to R405 million from the previous corresponding period, with cash generated from operations up by 105 percent to R767 million, while consolidated gearing was reduced to 15 percent, from 27 percent previously. Super Group attributed the results to the “satisfactory performance” of the South African supplychain business and the strong improvement in
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Super Group focus retail
operating margins reflected by African logistics. Super Group’s fleet solutions business performed extremely well, securing new contracts and reducing costs. The group’s dealerships also saw sales volume growth, with a 19 percent rise in new vehicle sales. The success of its dealership division is based on building long-term relationships with clients, staff and suppliers, and it is currently looking to expand. The dealership division has been a strong performer and Super Group is keen to grow it. Currently the division consists of 23 franchised motor dealerships – 20 passenger vehicle and three commercial vehicle dealerships – based in Gauteng and the North West Provinces. “Approximately two-thirds of sales are passenger vehicles, with the remainder comprising light, medium and heavy commercial vehicles,” the company’s said in a recent release. Super Group’s share price went up 82.8 percent between February 2011 and February 2012 and has ballooned since - a sign of just how well things are going. Despite some obvious challenges, it has a lot to look forward to. One challenge is the fact that the South African 4
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iX Online Motoring iX Online Motoring Super Group dealerships following services:
provides with the
• Personalised, manufacturer approved dealer websites • Dynamic feed of used cars to a multitude of motoring websites • Leads manager • Weekly on-site visit by webmaster to, amongst other, photograph used cars, update website and upload specials • Vehicle trading for certain dealers • Auto Dealer submissions
Guide
(M&M)
• Social media and Twitter)
campaigns
sales
• SEO and search engine marketing • Monthly newsletters • Integrated Internet and CRM strategies
iXCompany TRADER name focus ??????? CRM SYSTEM SOCIAL MEDIA FULL SERVICE PARTS LOCATOR iX Online Motoring is a dedicated web-based solutions company, focused on making the internet work for the motor industry since 2001. With a national footprint of over 400 clients, including leading dealers, groups and manufacturers, iX is represented in 137 South African cities and towns. iX offers a wide range of effective web-based tools and services - all focused on either generating enquiries, closing sales or managing customer relationships. Personalised packages and strategies can be adapted for large group and manufacturer initiatives or smaller dealer-focused solutions.
LEADS MANAGER DEALER WEBSITES DOCUMENT LIBRARY DEALER NEWSLETTERS PRINT MEDIA PLACEMENT ONLINE MEDIA PLACEMENT SEARCH ENGINE MARKETING SEARCH ENGINE OPTIMISATION
JOIN OUR WINNING TEAM MOTORITE VEHICLE WARRANTIES / MAINTENANCE PLANS / SERVICE PLANS
Super Group’s share price went up 82.8 percent between February 2011 and February 2012 and has ballooned since - a sign of just how well things are going
SELEFEN R U O Y S ECT UNFORESIR COST T O R P INST REPA AGACE AND I SERV
Motorite Insurance Administrators Pty (Ltd) is extremely proud to be the exclusive provider and administrator of Motor Vehicle Service Plans, Maintenance Plans and the Super Group Ignite Warranty to the Super Group Dealer network and has been for the past seven years. Through our innovative approach to product design and development and our enhanced service levels in claims processing not only do we offer improved dealer second gross income but greater levels of Customer Satisfaction in the workshop environment.
For more information visit our web site or contact us on: www.motorite.co.za | 0860 66 22 www.southafricamag.com 11 | 011 259 4800 | info@motorite.co.za 5
Super Group focus retail
logistics system is undergoing fundamental change, having committed itself to increasing the proportion of freight travelling by rail. According to Transnet’s new Market Demand Strategy announced by President Jacob Zuma during the state of the nation address, Transnet will spend R300 billion over the coming seven years to increase the competitiveness of rail. You might think this was bad for Super Group? Actually no - it is banking on intra-African trade growing much quicker than rail capacity, offering opportunities. Super Group is on the acquisition trail again after spending much of the late 1990s rationalising its operations and selling non-core and unprofitable businesses. 6
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The group has identified a few acquisition opportunities in the dealership and supply chain divisions. It has acquired new dealerships in South Africa, getting hold of Lexus the Glen in Glen Eagles, Chrysler Jeep Dodge East Rand, Suzuki Boksburg, Alfa Midrand and Jaguar East Rand. “Super Group Dealerships plans to grow, remain professional and give our clients outstanding service. We would like to add BMW, Kia and Hyundai to our stable,” the company told South Africa Magazine. It is currently redeveloping three dealerships in Rustenburg – Audi, Renault and Volkswagen. To learn more about Super Group visit www.supergroup.co.za. END
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