Santova, the asset-light, technology-driven logistics and trade specialist, faced one of its toughest tests in the year to February 2025.
Freight rates plunged, interest rates stayed elevated and global trade was upended by conflict and politics. The result was a tale of two halves. Santova’s first six months were hampered by weak consumer demand and high costs, but in the second half there was a strong recovery — proof that, for Santova, earnings aren’t purely a function of freight rates. In fact, despite lower pricing in the latter period, the group clawed back a 22% deficit and ended the year with almost flat overall profits.
Africa, still the group’s anchor, accounted for nearly half of total profits and grew net income by almost 38% year on year. South Africa’s resilience was underpinned by stable electricity supply and stronger consumer spending in late 2024, while Mauritius delivered another double-digit gain.
Asia-Pacific also shone, with net profit more than doubling thanks to strength in Hong Kong and Singapore and early traction in Vietnam, where Santova has planted a “grassroots” operation to capture fast-growing inter-Asian e-commerce flows. The region’s manufacturing and digital trade ecosystems continue to expand rapidly, and Santova’s positioning there — especially with its new registered entity in mainland China — gives it direct access to Chinese carriers and better buy rates for clients.
By contrast, the UK had a tough year, with one of Santova’s key clients disrupted by the Red Sea crisis, softer demand from other customers, and the absence of one-off revenue gains that had lifted the prior period. Europe, too, remained sluggish amid weak trade volumes and persistent overcapacity.
That landscape, however, is set to shift dramatically with Santova’s biggest corporate move in years — the R400m acquisition of the Seabourne Group
That landscape, however, is set to shift dramatically with Santova’s biggest corporate move in years — the R400m acquisition of the Seabourne Group. The deal adds 11 offices and warehouses across the UK, Netherlands and France, substantially strengthening Santova’s foothold in Europe’s logistics heartland and marking a decisive step in its global expansion strategy.
Acquired on a bargain p:e of six, Seabourne, judging by its historical results, could lift Santova’s profits by roughly a third. For a company with a market capitalisation near R1.1bn, the deal is significant. Seabourne adds strategic fulfilment centres designed for fast, tech-integrated order processing — facilities that plug directly into the booming e-commerce ecosystem where customers expect real-time tracking, multicarrier flexibility and rapid last-mile delivery.
This matters because “small packages” are now the industry’s big trend. Global e-commerce sales are expected to rise from $4.3-trillion in 2025 to nearly $5.9-trillion by 2029, driving demand for fulfilment space and smarter logistics.
Santova’s focus on integrating digital systems and cloud-based analytics gives it an edge in the “cost-to-serve” revolution sweeping global supply chains. Increasingly, clients want to know not just what their total bill is, but what each route, channel and customer actually costs to service. Santova’s technology and data platforms are built for exactly that kind of insight.
Still, the wider industry context remains daunting. Drewry’s world container index has dropped more than 50% over the past 12 months, with most of the decline occurring after Santova’s year-end. Because Santova’s billing rates are partly linked to freight rates, a sustained slump typically squeezes margins.
Yet the company’s recent results show the link isn’t linear. The second-half rebound proved that volume growth, client mix and value-added services can offset weaker pricing. Moreover, as Seabourne’s fulfilment business ramps up, Santova’s exposure to freight rate swings should be further reduced.
Santova benefits from its geographic diversification — a major strength as global trade realigns under new political pressures. The group’s direct exposure to US trade lanes is limited, so potential fallout from US President Donald Trump’s revived tariff wars would likely be manageable. Indeed, trade rerouting away from the US-China corridor could even boost activity in alternative lanes where Santova already operates, such as Asia-Africa and intra-Asian routes.
Financially, the company remains sound, with the Seabourne acquisition funded largely by cash. At a p:e of about seven, the stock looks cheap for a global trade solutions firm, especially since the Seabourne acquisition should lift earnings materially and increase offshore revenue to about 86% of the total. It will significantly expand Santova’s scale and presence across Europe’s key logistics corridors — and transform the group into an even stronger rand hedge. Coupled with recovering demand in Africa and a resurgent Asia-Pacific base, the group’s mix of technology, data-driven analytics and fulfilment infrastructure looks set to restore its growth trajectory.
Santova’s challenge now is execution — integrating Seabourne smoothly, turning its US and Vietnamese start-ups profitable and converting its growing “cost-to-serve” expertise into recurring, high-margin contracts. The external environment will no doubt remain volatile, but Santova has repeatedly proven its ability to adapt and chart a steady course through shifting global trade winds.
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