Transport and mobility conglomerate Super Group enters financial 2026 a markedly different company from what it was 12 months ago, due to the sale of its 53.6% stake in Australian fleet management firm SG Fleet.
The R7.47bn disposal unlocked enormous value for shareholders but also changed the character of the company: smaller, more African in focus and far less leveraged, with net debt now sitting at just 0.75 times ebitda.
For now, the new framework is set to hold. Management has been adamant that there will be no acquisitions in the near term. “Our primary focus at the moment is organic growth in Southern Africa,” CEO Peter Mountford told investors, highlighting new contract wins in the consumer logistics business and strong momentum in GLS, its pallet and related-products unit, which is scaling rapidly. With cash flow stabilised and capital expenditure guided at about R2bn, the company is positioning itself to grow without stretching its balance sheet.
Yet while Super Group’s structure has become simpler, its trading environment remains complex. The biggest pain point remains commodity logistics. Volumes through the Durban port corridor were sharply lower, with copper and cobalt exports from the DRC and northern Zambia hampered by infrastructure bottlenecks, border delays and export restrictions. Mountford noted that profits in this segment dropped by R160m year on year and that one of the group’s listed coal-haulage clients entered business rescue proceedings. A recovery later in 2026 depends heavily on improved port turnaround times and the release of stockpiled cobalt.
By contrast, the consumer-facing side of the logistics business has been vibrant. New contracts in fast-moving consumer goods and convenience retail nearly doubled volumes in parts of the division. Product diversification and expanded logistics services helped offset commodity weakness, while the industrial subsegment delivered an adequate performance in a stagnant market. Management expects the consumer and corporate supply chain units to lead earnings momentum in the new financial year.
Fleet Africa, the group’s fleet leasing arm, provided another pocket of resilience. Despite the absence of large state tenders, the business increased operating profit 11%. The business remains focused on expanding its corporate client base.
The dealerships segment presented a study in contrasts. Super Group’s South African network limited its revenue decline to just 1.3%, as a 5.6% rise in used-car sales helped offset a 6.7% drop in new-vehicle volumes. The portfolio’s diversity was key: while luxury sales dipped, Asian brands — especially Chinese carmakers — surged 20.8% and now make up more than 22% of the group’s vehicle sales.
The company will continue to focus on Chinese brands that are gaining significant market share in South Africa
Mountford said the company will continue to focus on Chinese brands that are gaining significant market share in South Africa. Encouragingly, after the June year-end, national new-vehicle sales have continued to accelerate, suggesting a more supportive backdrop for the dealership segment in the year ahead.
The UK dealerships, however, remain under pressure. Revenue dropped 3.4% and operating profit nearly halved, reflecting both a sharp decline in dealer volumes and the effects of Britain’s vehicle emissions trading scheme, which penalises sales of all but electric vehicles (EVs).
With Ford’s market share slipping to 5.8% and production of key models delayed, the group has been forced into painful restructuring. It exited Suzuki, reclassified its Kia and Hyundai franchises as held-for-sale, and introduced Chinese electric newcomers Omoda and Jaecoo at several multibrand Ford sites. The UK will likely remain a challenge until the transition to EVs stabilises and margins recover.
In Europe, the supply chain division continues to face headwinds. Amco, which provides integrated land, air and sea logistics services to clients across the UK and Europe, saw revenue decline in tandem with collapsing UK automotive production — now at its lowest level since 1956 and more than 50% below the 20-year average. Ader, its Spanish counterpart, showed some improvement but still incurred an operating loss. Both operations are cutting overheads and investing in AI-driven efficiencies aimed at returning to profitability.
The sale of inTime, its loss-making German and East European logistics unit, to Mutares for €9m was a strategic move that removes a persistent drag on results.
The financial performance was steady rather than stellar, with headline earnings from continuing operations broadly unchanged from the prior year. Shareholders were richly rewarded through a special dividend of R16.30 a share, though no ordinary dividend was declared.
Management plans to reinstate the regular dividend policy in financial 2026 and has signalled that share buybacks could be considered if market valuations are attractive. Any future deals will be bolt-ons in areas the group knows well — logistics, fleet and dealerships — and only if valuations and returns meet strict criteria.
Looking ahead, management expects modestly higher earnings in 2026. Freed from the capital-intensive SG Fleet, Super Group’s challenge now is to rebuild growth organically in difficult markets and demonstrate that a leaner, Africa-centred model can still deliver durable returns. Fortunately, the p:e of six provides a comfortable margin of safety.
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