| Wed 3 Apr 2002, 0:00 | | United Service Technologies Limited - Audited Res |
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United Service Technologies Limited
(Incorporated in the British Virgin Islands)
JSE Code: USV ISIN: ZAE000012431
Audited results for the year ended 31 January 2002 (in accordance with US
GAAP)
UNITED SERVICE TECHNOLOGIES LIMITED
PROFIT AND LOSS ACCOUNT
Year to Year to
SAR000's 31/1/02 31/1/01*
Income
Operating profit 3 199 1 789
Income attributable to associated
company 86 747 75 271
Interest received 382 236
Ordinary profit before tax 90 328 77 296
Taxation attributable to associated
company 25 484 19 173
Net income 64 844 58 123
Number of ordinary shares
in issue (000) 54 583 54 583
Basic earnings per share (cents) 118.8 106.5
Headline earnings per share (cents)
before amortisation of goodwill 150.1 130.8
* The 2001 year-end comparatives have been restated to reflect the change in
accounting policy. The effect of this change on opening retained earnings
was to reduce shareholders' funds by approximately R54 000.
The restating of the 2001 year-end comparatives has resulted in reducing net
income from a previously reported balance of R62.7 million to R58.1 million.
In addition it resulted in headline earnings per share (before amortisation
of goodwill) decreasing from a previously reported amount of 145.1 SA cents
to 130.8 SA cents.
Reconciliation of Headline Earnings 2002 2001
Basic earnings 64 844 58 123
Goodwill 17 073 13 243
Headline earnings 81 917 71 366
BALANCE SHEET
SAR000's 31/1/02 31/1/01
Fixed assets
Investments 740 669 533 154
Current assets 10 261 9 880
Current liabilities 68 8 901
750 862 534 133
Capital and reserves
Ordinary share capital 47 581 47 581
Reserves 703 281 486 552
Shareholders' funds 750 862 534 133
Market value of listed investment at 31 January 2002 is R1 850 million.
Proposal of dividend
An ordinary dividend of 10.0 SA cents (10.0 SA cents) per share has been
proposed by the directors and is to be confirmed by the shareholders at the
Annual General Meeting to be held in June 2002.
UTi Worldwide Inc
SUMMARISED PROFIT AND LOSS ACCOUNT**
Year to Year to
SAR000's 31/1/02 31/1/01***
Revenue 7 887 067 6 098 925
Earnings before interest, tax,
depreciation and goodwill (EBITDA) 393 895 265 460
Operating profit on ordinary
activities (excluding goodwill) 310 320 201 451
Taxation 70 639 43 860
Headline earnings
before amortisation of goodwill 217 145 160 792
Earnings after amortisation
of goodwill 169 819 130 370
Weighted average number of shares
diluted 25 502 21 053
Earnings per ordinary share (cents)
(diluted) 665.9 619.2
Headline earnings per share
before amortisation of goodwill
(diluted) 851.5 763.7
**Translated at the exchange rate of 8.864 South African Rand to 1 United
States Dollar (2001: 7.065).
*** The prior year comparatives have been restated to reflect the change in
accounting policy. This resulted in the comparative earnings after
amortisation of goodwill decreasing from a previously reported balance of
R139.6 million to R130.4 million. The headline earnings before amortisation
of goodwill decreased from a previously reported balance of R177.8 million
to R160.8 million. This arose primarily due to once off charges, made in
accordance with US GAAP, relating to the treatment of business combinations
and incentive plans in the prior year.
SUMMARISED BALANCE SHEET****
SAR000's 31/1/02 31/1/01
Non-current assets
Property, plant and equipment 356 101 275 422
Goodwill 874 815 536 179
Deferred tax assets 16 345 11 576
Other non-current assets 38 891 35 507
1 286 152 858 684
Current assets
Trade and other receivables 2 333 861 1 862 919
Cash and other equivalents 1 000 239 775 171
3 334 100 2 638 090
Total assets 4 620 252 3 496 774
Non-current liabilities
Long-term borrowings 13 605 24 893
Deferred tax liabilities 17 882 18 730
Other non-current liabilities 73 302 73 710
104 789 117 333
Current liabilities
Trade and other payables 1 976 780 1 488 548
Short-term borrowings 372 032 348 131
Other current liabilities 84 097 49 384
2 432 909 1 886 063
Minority interest 28 799 15 973
Shareholders' funds 2 053 755 1 477 405
****Translated at the exchange rate of 11.419 South African Rand to 1 United
States Dollar (2001: 7.880)
COMMENTS
Uniserv Results
United Service Technologies Limited ("Uniserv") is listed on the JSE
Securities Exchange SA. Our only interest is an investment in UTi Worldwide
Inc. ("UTi"), a global supply chain solutions provider, which is listed on
Nasdaq under the symbol (UTIW). Uniserv holds approximately 36.1% of the
equity in UTi.
On 1 February 2001, UTi changed its accounting policy from reporting in
terms of International Accounting Statements (IAS) to reporting in terms of
US Generally Accepted Accounting Principles (US GAAP). Accordingly Uniserv
has changed its accounting policy from reporting in terms of IAS to
reporting in terms of US GAAP.
We equity account the results of UTi in Uniserv. Headline earnings per share
in Uniserv (prior to the amortisation of goodwill in UTi) increased by 15%
to 150.1 SA cents (130.8 SA cents).
Barry Saxton resigned as a director of Uniserv effective 2 February 2002. We
thank him for the contribution he has made over the years and wish him well
in the future.
UTi Worldwide Inc.
The UTi results are reported in US Dollars. The results of Uniserv and the
Uniserv share price on the JSE Securites Exchange SA are denominated in SA
Rand. To assist in understanding the operations of UTi, as in the previous
year, we have presented a summarised Profit and Loss account and Balance
Sheet of UTi translated into SA Rand. The summarised Profit and Loss account
has been translated at the average rate of exchange for the year - 8.864 SA
Rand to 1 US Dollar (7.065). The balance sheet has been translated at the
exchange rate ruling at the end of the financial period of 11.419 SA Rand to
1 US Dollar (7.880).
As expected there was a slow down in revenue growth for the group due to the
weakening economic conditions, particularly in the USA. This was largely
offset by the devaluation of the South African Rand when translating the UTi
results to South African Rand.
Revenue in UTi increased by 29% to SA R7.9 billion (SA R6.1 billion).
Operating profit on ordinary activities (before amortisation of goodwill)
increased by 54% to SA R310.3 million (SA R201.5 million). EBITDA (earnings
before interest, tax, depreciation and goodwill amortisation) increased by
48% to SA R393.9 million (SA R265.5 million).
The effective tax rate of UTi was 28% compared to a prior year effective tax
rate of 24%. This increase was primarily as a result of a different mix in
income generating countries.
Headline earnings (before amortisation of goodwill) increased by 35% to SA
R217.1 million (SA R160.8 million). Headline earnings per share increased by
11.5% to 851.5 SA cents (763.7 SA cents). This dilutive effect on the
percentage increase in earnings per share is a consequence of the additional
shares issued in the prior year IPO. This increased the average number of
UTi shares held throughout the year.
Free cash flow generated during the year amounted to approximately SA R296
million (SA R126 million).
In January 2002 UTi enhanced its depth of service as well as its global
footprint with the acquisition of Grupo SLI, a warehousing and logistics
services provider headquartered in Madrid, Spain with operations in Spain
and Portugal. With this acquisition, UTi now has approximately 3 million
square feet of warehouse space in Europe.
In February 2002, UTi announced the rollout across the global organisation
of its strategic growth plan for the next five years, entitled NextLeap. Via
this initiative UTi plans to gain strategic customers through a solution-
based approach; accelerate its annual rate of net revenue growth; further
strengthen operating margins; raise the skills of employees through
increased training; and implement a new profit-based incentive program
designed to drive higher performance.
Despite weaker economic conditions there are encouraging signs of
strengthening ocean freight business early in the first quarter of fiscal
2003. UTi continues to manage costs in their operations as sustained
improvements in the airfreight business, particulary in the USA, are not yet
apparent.
More information on UTi is available on the Internet at www.go2uti.com. A
live broadcast on the results is archived and can be heard for 2 weeks until
5pm, Pacific Standard Time, Wednesday 17 April 2002 at this Internet site or
at www.companyboardroom.com.
MJ Wessels
Chairman 4 April 2002
UNISERV
Transfer agents in South Africa
Mercantile Registrars Limited
10th Floor
11 Diagonal Street
Johannesburg 2001
UTi
Registered office
First Floor
Bank of Nova Scotia Building
Road Town, Tortola
British Virgin Islands
