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Shares in Super Group climbed more than 7% on Wednesday after the logistics, fleet management and dealership company forecast a sharp increase in annual earnings from its continuing operations, extending gains of about 30% over the past year and 15% over the past six months.The company said it expects HEPS from continuing operations for the year to end-June to increase by 33.6%-40.9%, to 328.7c-346.7c per share. The trading update triggered a positive market reaction, with investors pushing the share price up almost 8% higher in early trade and resting at 6.8% in the afternoon trade.Super Group said the performance came despite a difficult operating environment.“Super Group delivered an excellent performance despite a challenging macroeconomic environment and ongoing operational pressures. Most businesses across the group performed strongly, gaining market share while successfully navigating infrastructure constraints and supply chain disruptions.”The company said its balance sheet remains strong with low debt levels and sufficient room in its borrowing facilities. It added that total earnings are expected to be lower than last year as the previous year’s figures included profit from the sale of the SG Fleet and earnings the business generated before it was disposed of. Super Group delivered an excellent performance despite a challenging macroeconomic environment and ongoing operational pressures. — Super GroupSuper Group expects total HEPS, including discontinued operations, to decline by 26.9%-35.4%.The earnings guidance follows a strong first half when the group reported rising revenue and profit as demand for lower-priced vehicles supported its dealership business.Revenue increased 7% to R22.68bn in the six months to end-December, while operating profit rose 8.7%. HEPS increased 28% to 155.4c.The group previously said sales volumes of Chinese and Indian vehicle brands increased 102% during the period. Those brands accounted for 29.7% of total new vehicle sales, reflecting their growing contribution to the dealership business. During the half year, Super Group expanded its network by adding Geely, Tata Motors, Mahindra, GWM and Ford dealerships, Business Day reported.The group has also broadened its operations beyond its traditional businesses through acquisitions. Earlier this year, it completed the acquisition of a 70% stake in mining equipment rental business DIG Group after receiving regulatory approval. The transaction expands Super Group’s fleet solutions division into the mining services sector, adding operations across 19 mining sites serving coal, chrome and gold producers.Super Group will publish its full-year results on September 8.
