Secure Logistics Group Limited reported consolidated earnings per share of PKR 2.43 in CY24, up 15% from PKR 2.12 in CY23. This translates into profit after tax of PKR 601 Mn compared to PKR 353 Mn in SPLY, an increase of 70%. Total revenue in CY24 reached PKR 2.52 Bn against PKR 2.05 Bn in CY23, an increase of 23%.
Average age of the fleet is about 5 years. The company plans to expand its fleet from the current size of 160 to over 300 within this year.
A substantial portion will be LCVs in order to cater to last mile delivery for e-commerce. SLGL is in the process of merging Trax into the group through a share swap. Post-merger the management expects that overlapping costs will deliver savings of over PKR 900 Mn. It is currently in the process of finalizing the plan for merger and expects to take advantage of these savings within 90-120 days after the merger is completed.
Regarding the status of the merger, management clarified that approval from CCP is remaining after which it is expected the court will approve the scheme of arrangement with an effective date of 1st April 2025. It is expected that the merger will enhance operational capabilities with Trax’s asset-light tech-heavy business and SLGL’s current asset heavy model.
Alongside this, the group will be a complete first to last mile logistics provider which will also be tech enabled allowing it to deliver superior services to its customers. It was also made clear that the company will routinely carry out corporate briefing sessions and make the interests of all shareholders its top priority. The management also apprised that it plans to take on approximately PKR 1.3-1.4 Bn in debt over the coming year to finance vehicles as well as for operating expenses.
Alongside this the company is also aiming to expand its footprint by enhancing the number of marshalling yards from one to 3 by the end of CY26 and its warehousing space to over 1 million square feet by the end of CY29. Moving forward, the management provided an estimate of their profitability targets post-merger for the next few years as shown in the table below.
Important Disclosures
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