Islamabad: Secure Logistics Group Ltd. (SLGL) today reviewed its performance for the first half of 2024 and discussed future plans in an analyst briefing hosted by AKD Securities Limited. The company reported a 12% increase in revenue, reaching PKR 1.2 billion, and improved gross margins, signaling robust growth and strategic expansions ahead.
According to AKD Securities Limited, SLGL has benefited from diversified cash flows across its subsidiaries, particularly in its Logistics and Asset Tracking and Security Service divisions. Notably, the company enjoys significant tax advantages due to its operations within the Special Tech Zone in Islamabad, including a 10-year tax break and customs duty exemptions, which have helped maintain an effective tax rate between 12-14%.
The company is poised for regional expansion, expecting to secure a license to operate in the Central Asia region by late 2024. A key part of this strategy is a strategic partnership for exclusive logistics services on the Tashkent route, which promises higher revenue compared to domestic routes.
SLGL also announced plans for technological advancements with the launch of the Logiserve app, which will enhance fleet operations and integrate third-party vehicles. Additionally, the company aims to significantly expand its warehousing capabilities, targeting 1 million square feet of new storage space over the next three years.
The financial strategy includes leveraging a recent PKR 585 million pre-IPO funding, primarily used to reduce bank debt and lower financing costs, with expected significant savings on interest payments in the latter half of the year.
Management also highlighted operational efficiencies, noting the current fleet comprises 123 large trucks and 37 small trucks, with plans under consideration to expand the fleet of small vehicles due to their higher yield potential.