| Tue 20 Feb 2001, 0:00 | | Unihold Ltd - Interim Results |
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Unihold Limited
(Registration number 1968/000216/06)
Abridged interim results achievements
* Earnings per share increase by 148,3%
* Debt equity ratio reduces from 49,7% to 6,8%
* International operations achieve exceptional growth Balance sheets
Income statements
Unaudited Unaudited
31 December 31 December
R'000 2000 1999
Capital employed
Capital and reserves 148 399 122 884
Outside shareholders' interest 72 530 4 308
Total shareholders' interest 220 929 127 192
Deferred tax liabilities 955 -
Vendors for business acquired 24 258 -
Long-term liabilities 5 602 6 572
251 744 133 764
Employment of capital
Property, plant and equipment 33 158 41 709
Goodwill 29 572 -
Intangible assets 6 258 -
Investments and loans 57 604 55 211
Deferred taxation 6 880 1 427
Net current assets 118 272 35 417
Current assets 342 161 305 568
Inventories 64 805 56 512
Accounts receivable 222 505 160 128
Taxation 1 476 -
Bank balances and cash 53 375 88 928
Current liabilities 223 889 270 151
Accounts payable 159 957 184 268
Taxation 1 107 2 587
Short-term borrowings 937 2 129
Bank overdrafts 61 888 81 167
251 744 133 764
Net asset value per ordinary share (cents) 240 143
Debt equity ratio (%) 6,8 0,7
Unaudited Unaudited
6 months to 6 months to
31 December 31 December
R'000 2000 1999
Revenue 385 875 302 330
Operating income 20 901 15 094
Exceptional items 19 008 (621)
Operating income before interest 39 909 14 473
Net interest expense (6 039) (654)
Income before taxation 33 870 13 819
Taxation (4 240) (2 160)
Net income after taxation 29 630 11 659
Equity accounted retained earnings 3 021 271
Net income 32 651 11 930
Net income attributable to outside shareholders (5 638) (1 419)
Net income attributable to ordinary shareholders 27 013 10 511
Headline earnings per ordinary share (cents) 8,7 12,5
Earnings per ordinary share (cents) 29,3 11,8
Ordinary shares in issue ('000s) 92 080 89 175
Weighted average number of shares in issue ('000s) 92 080 89 175
Group statement of changes in equity
Ordinary Ordinary
Unaudited shares share Share
R'000 in issue* capital premium
Balance at
30 June 2000 92 080 46 278 1 903
Attributable profit
Translation reserve
movement
NDR arising from
disposal of operations
Adjustment to share
accrual for business
acquired (272) (433)
Balance at
31 December 2000 92 080 46 006 1 470
*Number of shares in '000s
Non-dis- Dis- share-
Unaudited tributable tributable holders'
R'000 reserves reserves equity
Balance at
30 June 2000 9 800 58 752 116 733
Attributable profit 27 013 27 013
Translation reserve
movement (523) (523)
NDR arising from
disposal of operations 5 881 5 881
Adjustment to share
accrual for business
acquired (705)
Balance at
31 December 2000 15 158 85 765 148 399
*Number of shares in '000s
Cash flow statement Unaudited Unaudited
6 months to 6 months to
31 December 31 December
R'000 2000 1999
Cash flow from operations before
working capital changes 20 007 8 490
Working capital changes (51 260) (33 024)
Cash utilised in operations (31 253) (24 534)
Net cash inflow /(outflow) from investing activities 87 079 17 632
Net cash flows from financing activities (13 055) 5 489
Net increase/(decrease) in cash and cash equivalents 42 771 (1 413)
Cash and cash equivalents at the beginning of
the period (51 284) 9 174
Cash and cash equivalents at the end of the period (8 513) 7 761
Segmental reporting
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 December 31 December 30 June
R'000 2000 1999 2000
Turnover
Unihold Business Solutions 99 735 97 682 231 940
Unihold Communications 137 406 138 060 270 547
Pecaso 101 685 29 861 118 278
Corporate and other 47 048 36 727 71 373
Group turnover 385 874 302 330 692 138
Operating income*
Unihold Business Solutions (2 503) 5 621 14 342
Unihold Communications 1 597 3 429 10 665
Pecaso 17 935 7 268 23 940
Corporate and other 3 872 (1 224) (114)
Group operating income 20 901 15 094 48 833
Profit before interest and tax
Unihold Business Solutions (4 557) 3 418 14 330
Unihold Communications 1 597 3 429 10 619
Pecaso 17 935 7 268 23 940
Corporate and other 24 934 358 (1 614)
Group profit before interest and taxation 39 909 14 473 47 275
Unaudited Unaudited Audited
6 months to 6 months to 12 months to
31 December 31 December 30 June
R'000 2000 1999 2000
Turnover
South African operations 284 189 272 469 573 860
International operations 101 685 29 861 118 278
Group turnover 385 874 302 330 692 138
Operating income*
South African operations 2 966 7 826 24 893
International operations 17 935 7 268 23 940
Group operating income 20 901 15 094 48 833
Profit before interest and tax
South African operations 21 974 7 205 23 335
International operations 17 935 7 268 23 940
Group profit before interest and taxation 39 909 14 473 47 275
*Stated before exceptional items
Comments
Overview
Unihold Limited, a new convergent technology group, reports on a period during
which the information technology ("IT") and communications industries as a
whole experienced a depressed business climate. Unihold's local IT and
Communications divisions were adversely affected by these difficult market
conditions, but proactive steps have been taken to rationalise and scale back
on certain activities to achieve ongoing cost savings at a once-off
restructuring cost of R1 million. Notwithstanding local market conditions, the
South African operations made a positive contribution to group profits with
prospects and order books for the next six months indicating improved trading
conditions.
The international operation - now branded Pecaso Limited (derived from PEople
CApital SOlutions) - an initiative launched by Unihold just over two years ago,
continues to perform well above budget and is forecast to continue this trend
for the remainder of the financial year. Plans to list Pecaso were announced in
our previous annual report. To facilitate a successful listing of Pecaso on the
London Stock Exchange ("LSE"), Unihold will dilute and reduce its shareholding
to below 50% before the year-end. This will impact on reported headline
earnings for the full period. Consequently, Unihold is cautiously optimistic in
forecasting profits for the full financial year not materially lower than the
original forecasts of flat earnings on the previous year's figures.
Although headline earnings fell by 30,4% against those reported in the previous
period, reported earnings were 148,3% higher. The latter resulted mainly from a
disposal of a 3,8% shareholding in Pecaso at a capital profit of R12,8 million.
As a result of the disposal of the shareholding in Pecaso in December 2000, the
group's gearing has reduced from the figure at the last financial year-end of
49,7% to a level of 6,8%.
Unihold has a number of positive developments on which to report during the
period:
* The impending listing of Pecaso on the LSE is still on track, with the
market positive and receptive about prospects for the IPO ("Initial Public
Offering") and listing.
* The acquisition of BKC Consulting GmbH ("BKC") has been successfully
integrated and Pecaso continues to achieve exceptional organic growth.
* Unihold Business Solutions ("UBS"), the local IT operation, was the
recipient of three prestigious 'Business Partner of the Year' awards from
Computer Associates, Oracle and Lotus/IBM.
* UBS completed the development of one of the largest e-Business portals in
the country for
BOE/M-Web, using Microsoft technology.
* UBS was jointly awarded a R107 million, five-year outsourcing contract from
a leading mining group.
* Unihold was recently appointed as one of the five South African Revenue
Services ("SARS") e-Filing Service Providers for a period of two years. This
mission critical project will enable SARS to initiate a process to become
e-Commerce enabled from May 2001.
Acquisitions
During the period under review, Pecaso acquired the remaining 20% not held in
its subsidiary Access Consulting in the UK. Subsequent to the reporting period,
Pecaso exercised its option to acquire the remaining 40% in German-based BKC.
Future prospects
The listing of Pecaso on the LSE in the second half of this financial year will
unlock value for shareholders, and will significantly strengthen the group's
balance sheet, a factor which is key to providing the group with the resources
to continue to develop and grow its operations both locally and
internationally. The LSE listing provides Pecaso with access to funding to
achieve its future growth plans.
The group's earnings expectations for the full year need to be tempered,
firstly against the background of the poor trading conditions in the South
African economy during the first half of our financial year, and secondly
against the dilutionary impact of the international listing on attributable
earnings.
Improved trading conditions in the second half of the financial year and
closure of a non-performing operation is expected to result in UBS achieving
its annual forecast earnings.
Dividend declaration
No dividend has been declared, as the group's policy remains to retain cash
resources within the business to fund development and expansion.
On behalf of the Board
R J Khoza G D Harlow
Chairman Group Chief Executive
20 February 2001
Registered office: Unihold House, 22 Hurlingham Road, Illovo Boulevard, Illovo,
Johannesburg, 2196, PO Box 413800, Craighall, 2024
Tel (+27 11) 268-6080 Fax (+27 11) 268-6078
www.unihold.co.za
Transfer secretaries: Mercantile Registrars Limited, Eighth Floor,
11 Diagonal Street, Johannesburg, 2001, PO Box 1053, Johannesburg, 2000
Tel (+27 11) 370-5000 Fax (+27 11) 370-5271
Directors: R J Khoza* (Chairman), G D Harlow (Chief Executive Officer), J W
Butler*, D Deetlefs,
S P Frankenfeld*, K A Meredith, G K Morolo*, J G W Poole*, M G Struthers
(*non-executive)
