| Fri 7 Dec 2001, 0:00 | | Unihold: Financial Results - Financial Results |
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UNIHOLD LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1968/000216/06)
Share code: UHS ISIN: ZAE0000075898
("Unihold" or "the company")
Financial Results
for the 15-Month period ended 30 September 2001
INCOME STATEMENTS
Audited Audited Pro forma*
(Rands in thousands except 15 months to 12 months to 15 months
to
where otherwise stated) 30 Sep 01 30 Jun 00 30 Sep 01
Revenue 948 823 692 138 653 311
Operating income
Total operating income 14 611 37 924 (32 758)
Exceptional items 64 799 (1 558) 61 910
Operating income before interest 79 410 36 366 29 152
Net interest paid (12 816) (6 801) (11 372)
Income before taxation 66 594 29 565 17 780
Taxation (4 217) (10 727) 9 645
Net income after taxation 62 377 18 838 27 425
Equity accounted retained earnings 3 792 2 609 20 997
Net income 66 169 21 447 48 422
Net income attributable to
outside shareholders (16 222) (3 884) (1 365)
Net income attributable to
ordinary shareholders 49 947 17 563 47 057
Weighted headline (loss)/earnings
per share (cents) (12,3) 20,9
Weighted headline earnings per share
from continuing operations (cents) 23,6 20,9
Weighted earnings per share (cents) 54,0 19,1
Ordinary shares in issue ('000) 93 550 88 699 93 550
Weighted average shares in issue ('000) 92 562 92 080 92 562
Note:
Details of exceptional items and a reconcilliation of headline earnings is
included in the Annual Report to be released shortly.
BALANCE SHEETS
(Rands in thousands except Audited Audited Pro forma*
where otherwise stated) 30 Sep 01 30 Jun 00 30 Sep 01
ASSETS
Non-current assets 284 229 146 716 216 915
Property, plant and equipment 27 460 35 789 22 601
Goodwill 187 433 50 927 53 984
Intangible assets 2 405 560 2 405
Investments and loans 74 216 52 841 120 562
Deferred tax asset 16 091 6 599 17 363
Current assets 274 443 344 794 116 270
Inventories 60 483 65 117 60 483
Accounts receivable 133 276 231 615 55 787
Bank balances and cash 80 684 48 062 -
TOTAL ASSETS 582 048 491 510 333 185
EQUITY AND LIABILITIES
Capital and reserves 145 609 103 351 231 444
Outside shareholders' interest in
subsidiary companies 102 342 6 585 2 456
Total shareholders' interest 247 951 109 936 233 900
Vendors for businesses acquired 59 641 51 922 4 800
Interest bearing borrowings 65 010 837 2 634
349 226 162 695 241 334
Current liabilities 209 446 328 815 91 851
Trade and other payables 145 064 207 637 54 978
Taxation 12 610 12 633 1 437
Current portion of interest
bearing borrowings 14 058 9 199 2 177
Bank overdrafts 37 714 99 346 33 259
TOTAL EQUITY AND LIABILITIES 582 048 491 510 333 185
Net asset value
per ordinary share (cents) 157 112 250
Debt: equity ratio (%) 15,0 55,8 16,3
* The pro forma Balance sheet and Income statement reflect the Group's
financial results when treating the investment in Pecaso Ltd as an associate
company and therefore the pro forma information reflects the South African
component of the Group's assets and earnings.
SEGMENTAL REPORTING
Audited Audited
(Rands in thousands except 15 months to 12 months to
where otherwise stated) 30 Sep 01 30 Jun 00
Turnover
Business Solutions 213 263 231 940
International 295 511 118 278
Electronic technologies and other 439 185 340 082
Corporate and new ventures 864 1 838
Group turnover 948 823 692 138
Operating Income
Business Solutions (33 010) 7 498
International 47 369 23 940
Electronic technologies and other 15 096 16 418
Corporate and new ventures (14 844) (9 932)
Group operating income 14 611 37 924
PBIT
Business Solutions (41 437) 7 485
International 47 369 23 940
Electronic technologies and other 10 516 13 819
Corporate and new ventures 62 962 (8 878)
Group profit before interest
and taxation 79 410 36 366
CASH FLOW STATEMENTS
Audited Audited
(Rands in thousands except 15 months to 12 months to
where otherwise stated) 30 Sep 01 30 Jun 00
Cash flow from operations before
working capital changes 26 670 30 259
Working capital changes 719 (74 676)
Cash flow from operations 27 389 (44 417)
Net cash flow from investing activities 43 586 (5 785)
Net cash flow from financing activities 23 279 (10 256)
Net increase/(decrease) in cash and
cash equivalents 94 254 (60 458)
Cash and cash equivalents
at beginning of period (51 284) 9 174
Cash and cash equivalents
at end of period 42 970 (51 284)
GROUP STATEMENT OF CHANGES IN EQUITY
Ordinary* Total share-
(Rands in thousands except shares holders'
where otherwise stated) in issue equity
Balance at 30 June 1999 88 699 110 501
Write-off of goodwill (40 824)
Attributable profit 23 079
Translation reserve movement 1 644
Non-distributable reserve arising on
disposal of operations 7 868
Share accrual for businesses acquired 3 381 6 629
Balance at 30 June 2000 92 080 108 897
Changes in accounting policies (5 546)
Restated balance at 30 June 2000 92 080 103 351
Repricing of share incentive trust (8 508)
Attributable profit 49 947
Translation reserve movement 132
Non-distributable reserve arising on
disposal of operations (2 440)
Share accrual for businesses acquired 1 469 3 127
Balance at 30 September 2001 93 549 145 609
* Number of shares in thousands
COMMENTARY
Overview
Unihold Limited reported three months ago on its results for the 12 months
to 30 June 2001. Due to the change in year-end to accord with that of
Siemens Business Services ("SBS"), these results cover the 15 month period
to 30 September 2001.
During the last three months of the financial year, the merger of Unihold
Business Solutions ("UBS") with SBS was completed and implemented with
effect from 30 September 2001. As part of the process of preparing UBS for
the merger, certain non-recurring write-offs totalling R11 million were
made. However, a profit of R52,9 million was generated on the disposal of
UBS and this is reflected as an exceptional item.
The net effect of this reorganisation was that operating income reduced
substantially for the 15 months, while attributable earnings increased from
R17,5 million to R49,9 million. At the headline level, the company's
continuing operations earned 23,6 cents for the 15 months. However, headline
earnings including discontinued operations reflected a loss of 12,3 cents
per share, compared with 20,9 cents earned in the previous year.
The Group has substantially reduced its net debt position and at the same
time has rescheduled a major portion of debt, providing a more balanced mix
between long and short term borrowings. The debt: equity ratio now stands
at 15%. It is the Group's intention to further reduce its borrowings during
the current financial year.
International
Shareholders have previously been advised that the proposed London Stock
Exchange listing of Pecaso Limited ("Pecaso"), the Group's international
operations, has been deferred until market conditions are appropriate.
Shareholders will be kept informed of developments in this regard. Former
Group Chief Executive, Gary Harlow now heads Pecaso. This business is
showing substantial growth. Despite the turmoil in the international IT
markets. Pecaso has remained the largest generator of Unihold's operating
income and is in line to meet its forecast for its financial year to 31
March 2002.
Siemens Business Services
The merger of SBS and UBS has been completed and all conditions precedent
were met. The businesses have been integrated successfully. SBS has won
significant new business since that date and is operating profitably.
Prospects are promising and annuity income is expected to grow to 80% of
total revenues in the current financial year.
Electronic Technologies and other
This division comprises the Groups interests in electronic communications
and security equipment, flow automation & control systems and signage. These
operations, with the exception of the electronic security business,
performed well and are all cash generative.
Future Prospects
Unihold has recently invested in two new ventures-Taxbreak and Knowledge
Objects.
Taxbreak.co.za is the Group's portal to the South African Revenue Services
("SARS") and is one of the five SARS appointed eFiling service providers.
This business is continuing to grow and develop its client base.
Knowledge Objects, a developer of artificial intelligence applications for
niche markets, is making inroads into the medical claims adjudication field,
both locally and internationally.
Both these ventures are expected to make a positive contribution to Group
profits in the forthcoming year.
Continuing strong performance in Pecaso, and the positive results emanating
from the merger of UBS and SBS, is expected to result in a positive
turnaround in headline earnings performance.
Unihold has a diversified mix of technology investments with a healthy Rand
hedge through its investment in Pecaso.
An upturn in these sectors will enable Unihold to return value to
shareholders.
Dividends
In accordance with present group policy, no dividend has been declared.
R J Khoza M W Rolfe
Chairman Chief Executive
