| Thu 22 Feb 2001, 0:00 | | Unitrans - Results |
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UNITRANS LIMITED
Announcement OF Results
for the six months ended 31 December 2000
Registration number 1967/003403/06
("Unitrans")
HIGHLIGHTS
* ATTRIBUTABLE EARNINGS UP BY 32,5%
* HEADLINE EARNINGS UP BY 36,3%
* HEADLINE EARNINGS PER SHARE UP BY 26%
The board of directors of Unitrans announces the following consolidated results
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
Six Six Twelve
months months months
ended ended % ended
R 000's 31.12.2000 31.12.1999* Increase 30.06.2000*
Revenue 2 662 580 2 293 731 16.1 4 585 109
Operating earnings
before depreciation 212 303 184 645 313 122
Profit on disposal of
fixed assets 7 669 5 703 19 539
Earnings before
depreciation,
interest and taxation 219 972 190 348 15.6 332 661
Depreciation (83 303) (75 924) (130 627)
Amortisation of goodwill (1 063) - -
Impairment of fixed
property (1 250) - -
Earnings from joint
venture 3 171 - -
Earnings before
interest and taxation 137 527 114 424 20.2 202 034
Finance costs (11 070) (13 858) (20 758)
Net earnings before
taxation 126 457 100 566 181 276
Taxation (33 872) (29 216) (38 847)
STC (4 551) (3 987) (6 051)
Outside shareholders
interest (536) (1 348) (902)
Earnings attributable
to shareholders 87 498 66 015 32.5 135 476
Note: Earnings before
interest and taxation
includes interest income
derived from finance activities.
Weighted average number
of ordinary shares in
issue (000's) 75 940 70 159 70 195
Weighted average number
of ordinary shares that
would be issued on the
conversion of all the dilutive
potential ordinary
shares (000's) 589 96 308
Weighted average number of
shares for purposes of
calculating diluted
earnings per share (000's) 76 529 70 255 70 503
Earnings per share (cents) 115.2 94.1 22.4 193.0
Diluted earnings
per share (cents) 114.3 94.0 192.2
Headline earnings per
share (cents) 118.3 93.9 26.0 193.0
Note: Earnings per share is
calculated on the weighted
average number of shares in
issue during the year.
Determination of
Headline Earnings
Attributable earnings
per the income statement 87 498 66 015 135 476
Adjustment for :
- profit on disposal
of property - (110) -
- amortisation
of goodwill 1 063 - -
- impairment of fixed
property 1 250 - -
Headline earnings for
the period 89 811 65 905 36.3 135 476
*Note (i) The prior year figures for the six months, together with June 2000
have been restated to comply with AC 107,116, and 131.
These interim financial statements were not audited, nor were the comparatives
for the six months to 31 December 1999. The comparative figures for 30 June
2000, other than the effects of the prior year adjustments were subject to
audit.
ABRIDGED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
R 000's 31.12.2000 31.12.1999 30.06.2000
Assets
Non-current assets 930 211 715 648 753 133
Fixed assets 727 989 641 620 658 717
Goodwill 13 502 - -
Investment in joint ventures
and associates 107 879 - 10 000
Non-current assets 80 841 74 028 84 416
Current assets 897 037 683 313 971 731
Inventories 422 843 280 692 366 410
Trade and other receivables 443 574 385 875 391 263
Cash and cash equivalents 30 620 14 247 214 058
Net advances 0 2 499 0
- Gross advances
(after providing
for doubtful debts) 722 410 413 058 570 128
- Less : Liabilities
related to advances (722 410) (410 559) (570 128)
Total assets 1 827 248 1 398 961 1 724 864
Equity and Liabilities
Capital and reserves 911 976 721 520 861 556
Issued capital 404 870 328 735 404 870
Reserves 507 106 392 785 456 686
Minority interest 1 438 1 348 902
Non-current liabilities 111 623 114 836 116 423
Current liabilities 802 211 561 257 745 983
Trade and other payables 607 219 501 043 602 125
Taxation 43 940 19 151 30 720
Interest bearing borrowings 151 052 41 063 113 138
Total equity and liabilities 1 827 248 1 398 961 1 724 864
Number of shares in issue 75 954 70 211 75 788
Net asset value
per share (cents) 1 201 1 028 1 137
Notes:
1. The assets and liabilities of Unitrans Finance (Proprietary) Limited
("Ufin"), have been disclosed separately on the face of the balance sheet but
have been linked together and offset against each other as the Group is not
obliged to support any losses arising in Ufin.
2. Certain amounts have been reallocated and the prior year figures have been
restated accordingly .
3. Prior year figures have been restated to comply with AC 107,116, and 131.
ABRIDGED consolidated cash flow statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
R 000's 31.12.2000 31.12.1999 30.06.2000
Cash generated by operations 212 303 184 645 313 122
Increase in working capital (102 084) (20 172) (6 375)
Inventories (56 433) 2 226 (82 587)
Trade and other receivables (50 745) (12 492) (17 880)
Trade and other payables 5 094 (9 906) 94 092
Finance costs and tax paid (41 074) (31 810) (44 055)
Cash available from operations 69 145 132 663 262 392
Dividend paid (36 446) (31 899) (48 408)
Cash retained from operations 32 699 100 764 214 284
Capital expenditure
- net fixed assets (130 684) (73 642) (150 495)
- acquisition of business /
non-current assets (27 708) 8 142 2 882
- joint ventures and associates (95 659) - (10 000)
Net cash (utilised)/generated
by operations (221 352) 35 264 56 671
Notes:
1. The increase in inventories was attributable mainly to Motors division and
arose largely as a result of improved supply levels from manufacturers and from
a strategy to increase used vehicle stock.
2. Increased debtors were as a result of heightened trading activities.
3. Capital expenditure commitments amounted to R 57 400 000.
4. There were no material litigation claims or undisclosed liabilities as at 31
December 2000.
statement of changes in equity
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
R 000's 31.12.2000 31.12.1999 30.06.2000
Opening balance 1 July 2000 861 556 697 936 697 936
Earnings attributable
to shareholders 87 498 66 015 135 476
Goodwill written off against
share premium - (12 208) (32 292)
Dividend paid (36 446) (31 899) (48 408)
Issue of shares - 718 109 145
Unrealised
increase/(decrease) on
translation of net worth
of foreign subsidiaries (632) 958 (301)
Closing balance
31 December 2000 911 976 721 520 861 556
Notes
1. Compliance with GAAP
These interim results have been compiled in accordance with South African
Statements of Generally Accepted Accounting Practice.
2. Accounting policies
The accounting policies used in the preparation of the interim financial
statements are consistent with those adopted in the annual financial statements
for the year ended 30 June 2000, except for:
- The accounting policy for goodwill has been changed in order to comply with
AC 131. With effect from 1 July 2000 goodwill is capitalised and amortised on a
straight line basis over its estimated useful life, not exceeding 20 years.
- The Group has now accounted for provision for leave pay in accordance with AC
116.
- In accordance with AC 107 dividends will only be brought to account in the
year in which they have been declared. Accordingly dividends declared in August
1999 and 2000 in respect of the 1999 and 2000 financial years have been
reversed and brought to account in the appropriate years.
Comparatives have been restated and the effects are as follows:
Opening balance as at 1 July 2000 677 866
Leave pay provision (net of deferred taxation) (11 829)
Dividends 31 899
Restated opening balance 697 936
Dec 1999 June 2000
Impact on earnings (1 926) (378)
3. Changes in estimates
No changes in estimates occurred during the interim period.
4. Dividends
The Group's policy has been to declare two dividends per annum. With effect
from 2002, interim dividends in respect of the first six months of each
financial year will be discontinued.
5. Material subsequent events
No events of note have occurred subsequent to the half year end.
6. Changes in the business
There were no material changes in the composition of the business during the
interim period.
7. Segmental analysis
Six months to 31 December 2000
Earnings before Capital
R 000's Revenue % interest and tax % employed %
Transport and
logistics
services 679 923 26 97 986 71 705 653 60
Motor and
financial
services 1 982 657 74 43 236 31 470 436 40
Other - - (3 695) (2) - -
Total 2 662 580 100 137 527 100 1 176 089 100
Six months to 31 December 1999
Earnings before Capital
R 000's Revenue % interest and tax % employed %
Transport and
logistics
services 533 343 23 83 095 73 536 048 61
Motor and
financial
services 1 760 388 77 29 451 26 342 719 39
Other - - 1 878 1 - -
Total 2 293 731 100 114 424 100 878 767 100
COMMENTS ON RESULTS
The Board is pleased to report that the Group's headline earnings for the six
months ended 31 December 2000 grew by 36,3% to R89,8 million (1999: R65,9
million) on an increase in revenue of 16,1%. Headline earnings per share
increased 26% to 118,3 cents (1999: 93,9 cents) notwithstanding the increase in
the number of shares in issue of 5 742 550 to 75 953 850 at 31 December 2000
(1999: 70 211 300) and the prevailing flat economic conditions.
The operations generated cash of R212,3 million (1999: R184,6 million). EBITDA
at R220 million was 16% up on the previous year and covered finance costs more
than 19 times. A large portion of this cash was reinvested in working capital
which peaked at 31 December 2000. The increase in working capital has been
explained in notes 1 and 2 to the Abridged Consolidated Cash Flow Statement
above.
The level of gearing within the group at 13,2% (1999: 3,7%)is well within
acceptable levels. The Group will continue to focus on reinvesting cash
generated in value enhancing ventures and projects.
Net asset value per share increased to 1 201 cents (1999: 1 028 cents) per
share.
Corporate Activity
During the period, Competition Tribunal approval was obtained for the
establishment, together with Steinhoff Africa (Proprietary)Limited
("Steinhoff"), of the joint venture company Roadway Logistics
(Proprietary)Limited.
The Freight division has subsequently entered into an agreement to purchase the
remaining transport and logistic operations from Steinhoff. This transaction is
subject to Competition Commission approval.
The Motor division has acquired a 40% stake in Alisa Holdings
(Proprietary)Limited which holds the Hertz franchise in Southern Africa.
Prospects
It is expected that South Africa will continue to grapple with highly
competitive and challenging market conditions for the remainder of the year.
Notwithstanding this, and the skewing of earnings in Transport and Logistics
services towards the first half as a result of the seasonality of earnings in
the sugar division of Freight, the Passenger division and Unitrans Express
Deliveries (Proprietary)Limited, the prospects for growth in headline earnings
for the second half remain good. Growth opportunities that enhance shareholder
value in its key focus areas will continue to be explored.
STRATE
The Company's transition to STRATE (Share Transactions Totally Electronic) has
been scheduled for 15 October 2001. Shareholders will be advised in due course
as to the actions that will be required of them to effect the dematerialisation
of their share certificates.
On behalf of the Board
DC Brink KJ Grove
Chairman Chief Executive Officer
Declaration of dividend
Notice is hereby given that an interim dividend No. 27 of 25,5 cents (1999:
23,5 cents) per share has been declared payable to shareholders registered in
the books of the Company at the close of business on 9 March 2001 and will be
payable on or about 6 April 2001.
On due date, where applicable, dividends will be electronically transferred to
shareholders' bank accounts. In the absence of suitable mandates, dividend
cheques will be posted.
The dividend is payable in the currency of the Republic of South Africa.
By order of the Board
J V Radnay Illovo
Secretary 22 February 2001
Registered office:
263 Oxford Road, Illovo
Johannesburg 2196
Telephone: 011-442-8551
Telefax: 011-442-7802/20
Transfer secretaries:
Computershare Services (Pty) Limited
4th Floor, Edura House
41 Fox Street
Johannesburg 2001
Telephone: 011-370-7700
Telefax: 011-834-2446
Directors:
D.C. Brink*, B.C. Bruce*, L.B. Bird*, P.J. Dieperink, K.J. Grove H.V. Hefer*,
M.J. Jooste*, S.M. Keys, R.H. Naisby, P.K. Quarmby*, A.M. van der Colff*,
D.M. van der Merwe*
*non-executive
Secretary:
J.V. Radnay
