| Fri 24 Aug 2001, 0:00 | | Unitrans Limited - Group Audited Results |
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ISIN CODE ZAE000007670, SHARE CODE UTR
Registration number 1967/003403/06
("Unitrans")
GROUP AUDITED RESULTS
for the year ended 30 June 2001
financial highlights
- Headline earnings increased by 38%
- Headline earnings per share increased by 27%
- Return on shareholders'
funds inreased to 19.5%
The board of directors of Unitrans announces the following consolidated
results:
Abridged Consolidated Income Statement
Year ended Year ended %
R 000's 30.06.2001 30.06.2000* increase
Revenue 5 242 533 4 585 109 14
Operating income
before depreciation 397 985 318 392 25
Depreciation (154 757) (138 538)
Operating income after
depreciation 243 228 179 854 35
Profit on disposal of
property, plant
and equipment 22 142 19 539
Earnings before goodwill,
interest and tax 265 370 199 393 33
Goodwill amortised (8 292) -
Earnings before
interest and tax 257 078 199 393 29
Net finance costs (21 089) (24 857)
Earnings before tax 235 989 174 536 35
Income tax charge (60 731) (39 208)
STC (6 977) (6 051)
Earnings after tax 168 281 129 277 30
Share of associate loss (2 416) -
Outside shareholder's
interest (1 252) (902)
Earnings attributable
to shareholders 164 613 128 375 28
Weighted average number
of ordinary shares in
issue (000's) 75 952 70 195
Weighted average number of
ordinary shares that would be
issued on the conversion
of all the dilutive potential
ordinary shares (000's) 708 308
Weighted average number
of shares for purposes
of calculating
diluted earnings
per share (000's) 76 660 70 503
Earnings per share (cents) 216.7 182.9 19
Diluted earnings per
share (cents) 214.7 182.1
Headline earnings per
share before restatement 237.7 193.5 23
Changes in accounting policies
to comply with new
accounting standards (10.1) (10.6)
Profit on disposal of property,
plant and equipment (24.4) (23.4)
Headline earnings per share 203.2 159.5 27
Note: Earnings per share is
calculated on the weighted
number of shares in issue
during the year.
Determination of
Headline Earnings
Earnings attributable
to shareholders 164 613 128 375
Adjustment for:
- profit on disposal of
property, plant and
equipment (22 142) (19 539)
- goodwill amortised 8 292 -
150 763 108 836
Tax payable on profit
on disposal of property,
plant and equipment 3 581 3 140
Headline earnings
for the year 154 344 111 976 38
Changes in accounting
after tax comply with
new accounting standards 7 598 7 479
Net profit on disposal of
property, plant
and equipment 18 561 16 399
Headline earnings
before
restatement 180 503 135 854 33
* Note
(1) The prior year figures have been restated to comply with Accounting
Statements AC 107, 116, 130, 131 and 135.
(2) Profit on disposal of property, plant and equipment has been disclosed
as an adjustment to headline earnings in accordance with AC306.
statement of changes in equity
Year ended Year ended
R 000's 30.06.2001 30.06.2000*
Opening balance 789 119 677 866
Prior year adjustment - (45 266)
Earnings attributable to shareholders 164 613 128 375
Goodwill written off against
share premium - (32 292)
Dividend paid (55 820) (48 408)
Net cost of issue of shares (29) 109 145
Unrealised increase on translation
of net worth of foreign subsidiaries 4 830 (301)
Closing balance 30 June 2001 902 713 789 119
Abridged consolidated balance sheet
R 000's 30.06.2001 30.06.2000*
Assets
Non-current assets 883 363 711 100
Property, plant and equipment 708 072 609 762
Goodwill 45 645 -
Investment in associate 26 636 -
Deferred tax asset 6 860 6 922
Other non-current assets 96 150 94 416
Net advances - -
- Gross advances (after providing
for doubtful debts) 831 682 570 128
- Less: Liabilities related
to advances (831 682) (570 128)
Current assets 1 000 791 971 731
Inventories 441 325 366 410
Accounts receivable 397 617 391 263
Cash and cash equivalents 161 849 214 058
Total assets 1 884 154 1 682 831
Equity and Liabilities
Capital and reserves 902 713 789 119
Ordinary share capital and premium 404 841 404 870
Reserves 497 872 384 249
Outside shareholder's interest 2 154 902
Non-current liabilities 182 422 175 896
Deferred tax liabilities 106 712 106 096
Long-term provision 25 528 28 895
Vendors for businesses acquired 14 223 2 950
Interest bearing borrowings 35 959 37 955
Current liabilities 796 865 716 914
Accounts payable and provisions 694 286 612 467
Income tax payable 64 392 32 214
Vendors for businesses acquired 10 770 -
Short-term borrowings 27 417 72 233
Total equity and liabilities 1 884 154 1 682 831
Number of shares in issue 76 091 75 788
Net asset value per share (cents) 1 186 1 041
Note:
(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 and does not intend to do
so.
(2) The prior year figures have been restated to comply with Accounting
Statements AC 107,116,130,131 and 135.
abridged consolidated cash flow statement
Year ended Year ended
R 000's 30.06.2001 30.06.2000*
Cash generated by operations 397 985 318 392
Non-cashflow items 6 331 (2 275)
Increase/(decrease) in
working capital 2 181 (5 627)
- Inventories (74 657) (82 587)
- Accounts receivable 2 834 (17 880)
- Accounts payable
and provisions 74 004 94 840
Net finance costs and tax paid (56 844) (45 169)
Cash retained from operations 349 653 265 321
Dividend paid (55 820) (48 408)
Net cash inflow from operations 293 833 216 913
Investment to maintain operations (78 801) (8 312)
Investment to expand operations
- property, plant and equipment (138 257) (142 183)
- acquisition of businesses/
non-current assets (69 638) (9 747)
- associate (29 920) -
Net cash (utilised)/
generated by operations (22 783) 56 671
Notes:
(1) Capital expenditure commitments amounted to R22 850 000.
(2) There were no material litigation claims or undisclosed liabilities as
at 30 June 2001.
Notes
1. Compliance with GAAP
These 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 results are
consistent with those adopted in the annual financial statements for the
year ended 30 June 2000, except for:
- In accordance with AC 107 dividends are brought to account in the year in
which they have been declared. Accordingly the dividend 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.
- The group has now accounted for provision for leave pay in accordance with
AC 116.
- In terms of AC 130 provisions for onerous contracts in respect of property
lease commitments, are now recognised if there is a present obligation as a
result of a past event. In previous years, costs relating to these contracts
were expensed as incurred.
- The accounting policy for goodwill has been changed in order to comply
with AC 131. With effect from 1 July 2000 goodwill is amortised on a
straight line basis over its estimated useful life, not exceeding 20 years.
- In terms of AC 135 owner occupied properties are no longer considered
investment properties. Accordingly such properties are stated at cost and
depreciated over their useful lives.
3. Material subsequent events
No significant events have occurred subsequent to the year end.
4. Segmental analysis
Year ended 30 June 2001
Earnings
before
goodwill
interest Net
R 000's Revenue % and tax % assets %
Transport and
Logistics 1 342 727 26 167 919 63 547 945 66
- Freight and
logistics 1 056 326 135 288 442 733
- Passenger 286 401 32 631 105 212
Motor and
Financial
Services 3 899 806 74 97 451 37 283 443 34
- Retail 3 768 050 86 905 265 857
- Financial 131 756 10 546 17 586
Total 5 242 533 100 265 370 100 831 388 100
Year ended 30 June 2000
Earnings
before
goodwill
interest Net
R 000's Revenue % and tax % assets %
Transport and
Logistics 1 038 291 23 128 936 65 439 398 64
- Freight and
logistics 826 291 102 734 317 221
- Passenger 212 000 26 202 122 177
Motor and
Financial
Services 3 546 818 77 70 457 35 249 703 36
- Retail 3 466 881 63 871 241 428
- Financial 79 937 6 586 8 275
Total 4 585 109 100 199 393 100 689 101 100
COMMENTS ON RESULTS
The directors are pleased to announce an increase in headline earnings for
the 12 months ended 30 June 2001 of 38% and an increase in headline earnings
per share of 27%.
Change in Accounting Policy
The group has adopted a number of new accounting policies during the year.
The amended policies are summarised under note 2 above. In accordance with
AC306, the group has disclosed its profits on the disposal of property,
plant and equipment in both years as a headline adjustment.
Prior to any of these adjustments, the headline earnings for the group in
the current year is R181 million and headline earnings per share increased
to 237,7 cents. Taking the after tax effect of the aforementioned
adjustments into account, headline earnings per share is restated to 203,2
cents (2000: 159,5 cents) which represents a 27% increase in headline
earnings per share year-on-year.
Financial results
The group increased revenue by 14% and operating income before depreciation
and amortisation by 25%. Attributable earnings increased by 28% with total
earnings per share at 216,7 cents, 19% higher than the prior year.
Organic growth accounts for 87% of the increase in revenue and 83% in
operating profit.
The increase in headline earnings per share and earnings per share is
especially pleasing given the increase in the weighted average number of
shares of 5,8 million (8% of issued share capital).
The group generated cash of R398 million from its operations. Working
capital was effectively managed, as there was a net decrease year-on-year of
R2 million. R79 million was used to maintain existing operations. R237
million was spent on expansion of existing operations and acquisitions. The
group ended the year with a cash balance of R162 million. This positive
position reflects the continued strong cash generating capacity of the
group's operations.
Net asset value per share increased by 14% to 1 186 cents (2000: 1 041
cents) and operating cash flow per share increased by 22% to 460 cents
(2000: 378 cents).
The group's margin based on earnings before goodwill amortisation, interest
and tax has increased from 4,3% to 5,1%. The return on shareholders' funds
has increased from 18,1% to 19,5%.
Segmental Analysis
The Transport and Logistics division has increased revenue by 29%. Of this
4% can be attributed to the large increase in fuel costs during the year. As
indicated previously this fluctuation in fuel costs effectively results in
pressure on the margin as the costs increase by the same amount.
Notwithstanding this, margins increased from 12,4% to 12,5%. The net assets
invested increased by 25%.
The increase in the Motor and Financial Services division's revenue was 10%
with a 38% increase in earnings before goodwill amortisation, interest and
tax. This division achieved a 2,5% margin (2000: 2%). The 60% increase in
the Financial Services' contribution is especially pleasing. The net assets
invested increased by 14%.
Corporate Activity
During the year, the group acquired a number of businesses, which complement
its freight and logistic operations. These acquisitions have been bedded
down and will assist the group in expanding its existing service offerings
to clients.
The Freight and Logistics division has formed a joint venture with UPS
Logistics Group BV. This joint venture provides a platform from which the
group can offer world-class supply chain solutions to both international and
local clients.
The Motor and Financial Services division has acquired a 40% stake in the
holding company of Hertz South Africa. The balance of the shares in this
company are held by a leading empowerment group, New Africa Investments
Limited (NAIL). The potential for growth in the South African market of the
worlds' number one car rental brand provides the group with exciting
opportunities and synergies.
Prospects
Notwithstanding a general slow-down in economic activity, the board is
confident that the group is well positioned to deliver real growth in the
year ahead in all areas of its business.
STRATE
The company is scheduled to be transferred to the new STRATE system of
electronic settlement on the JSE Securities Exchange South Africa.
Dematerialisation of the company's shares will start from 29 October 2001.
Electronic trading in the company's shares will commence on 19 November 2001
with the first electronic settlement taking place on 26 November 2001.
The company's share certificates will accordingly not be accepted for
settlement after 19 November 2001.
Details of this transfer to STRATE will be sent to shareholders within the
next few days.
Dividend Policy
As previously advised to shareholders, year-on-year increases in dividend
should not exceed the rate of inflation for the relevant period and, with
effect from the 2002 financial year, interim dividends in respect of the
first six months of each financial year will be discontinued.
On Behalf of the Board
D C Brink K J Grov
Chairman Chief Executive
Declaration of Dividend
Notice is hereby given that a final dividend no. 28 of 52,5 cents per share
(2000: 48 cents per share) which, together with the interim dividend of 25,5
cents per share (2000: 23,5 cents per share), amounts to 78 cents for the
year ended 30 June 2001 (2000: 71,5 cents) has been declared payable to
shareholders registered in the books of the company at the close of business
on 7 September 2001 and will be payable on 5 October 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 declared in the currency of the Republic of South Africa.
By Order of the Board.
J V Radnay Illovo
Secretary 23 August 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. Grov , 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
Sponsor
Gensec Bank
