| Tue 20 Aug 2002, 0:00 | | Unitrans Limited - Group Audited Results For The Y |
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Unitrans Limited - Group audited results for the year ended 30 June 2002
Unitrans Limited
Registration number 1967/003403/06
JSE Share Code: UTR
ISIN: ZAE000007670
("Unitrans")
Group audited results for the year ended 30 June 2002
Financial Highlights
* Headline earnings per share up by 26%
* Return on shareholders` funds increased to 20%
* Net asset value per share up by 20%
* Net margin up by 13%
The board of directors of Unitrans announces the following audited group
results:
abridged group Income Statement
Audited Audited
Year ended Year ended
30.06.2002 30.06.2001 %
R 000 R 000 increase
Revenue 5 995 020 5 278 657 14
Operating income before 470 584 397 985 18
depreciation
Depreciation of property, 159 380 154 757
vehicles and equipment
Operating income after 311 204 243 228 28
depreciation
Net finance costs (32 992) (21 089)
Profit on disposal of property, 18 086 22 142
vehicles and equipment
Goodwill amortisation (13 145) (8 292)
Profit before taxation 283 153 235 989 20
Income taxation expense 74 642 60 731
STC 5 000 6 977
Profit after taxation 203 511 168 281 21
Share of associate and joint 1 849 2 416
ventures losses
Minority interests 2 298 1 252
Net profit for the year 199 364 164 613 21
Weighted average number of 76 204 75 952
ordinary shares in issue (000`s)
Weighted average number of
ordinary shares that would be
issued on the conversion of all
the dilutive potential
ordinary shares (000`s) 281 708
Weighted average number of
shares for purposes of
calculating
diluted earnings per share 76 485 76 660
(000`s)
Earnings per share
- basic (cents) 261.6 216.7 21
- fully diluted (cents) 260.7 214.7
Headline earnings per share
- basic (cents) 255.1 203.2 26
- fully diluted (cents) 254.2 201.3
Determination of headline
earnings
Net profit for the year 199 364 164 613
Adjustment for:
- Profit on disposal of (18 086) (22 142)
property, vehicles and equipment
- Goodwill amortisation 13 145 8 292
194 423 150 763
Taxation payable on profit on
disposal of property, vehicles
and equipment - 3 581
Headline earnings 194 423 154 344 26
* The prior year revenue figure has been restated to include the transport and
logistics division`s sub-contractor revenue.
This restatement has no impact on the reported net profits.
abridged group Balance sheet
Audited Audited
30.06.2002 30.06.2001
R 000 R 000
Assets
Non-current assets 1 027 967 883 363
Property, vehicles and equipment 817 015 708 072
Goodwill 51 096 45 645
Investment in associate and joint ventures 63 226 26 636
Deferred taxation asset 6 752 6 860
Other non-current assets 89 878 96 150
Net advances - -
- Gross advances (after providing for 538 347 831 682
doubtful debts)
- Less liabilities relating to advances (538 347) (831 682)
Current assets 1 212 652 1 000 791
Inventories 572 320 441 325
Trade and other receivables 497 861 397 617
Cash and bank balances 142 471 161 849
Total assets 2 240 619 1 884 154
Equity and liabilities
Capital and reserves 1 083 236 902 713
Share capital and premium 404 857 404 841
Reserves 678 379 497 872
Minority interest 5 325 2 154
Non-current liabilities 168 715 182 422
Deferred taxation liabilities 126 630 106 712
Long term provisions 22 983 25 528
Vendors for businesses acquired 8 000 14 223
Interest bearing borrowings 11 102 35 959
Current liabilities 983 343 796 865
Trade and other payables 833 760 691 019
Provisions 2 545 3 267
Taxation 56 099 64 392
Vendors for businesses acquired 1 650 10 770
Short term borrowings 89 289 27 417
Total equity and liabilities 2 240 619 1 884 154
Number of shares in issue 76 251 76 091
Net asset value per share (cents) 1 421 1 186
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 doing so.
abridged group cash flow statement
Audited Audited
Year ended Year ended
30.06.2002 30.06.2001
R 000 R 000
Cash generated by operations 470 584 397 985
(Increase)/decrease in working capital (73 346) 5 548
- Inventories (115 121) (74 657)
- Trade and other receivables (100 244) 2 834
- Trade and other payables 142 019 77 371
Net finance costs and taxation paid (104 838) (56 844)
Cash available from operations 292 400 346 689
Dividends paid (40 000) (55 820)
Net cash inflow from operations 252 400 290 869
Investment to maintain operations (84 052) (78 801)
Non-cashflow items 5 756 2 964
Investment to expand operations
- Property, vehicles and equipment (129 563) (138 257)
- Acquisition of business/non-current (37 985) (69 638)
assets
- Associate and joint ventures (47 622) (29 920)
Net cash utilised by operations (41 066) (22 783)
Interest bearing borrowings repaid (24 857) (1 996)
(Reduction)/addition in vendors for (15 343) 22 043
businesses acquired
Increase/(decrease) in short term 61 872 (49 444)
borrowings
Net proceeds/(costs) from issue of 16 (29)
shares
Net cash outflow/(inflow) from 21 688 (29 426)
financing activities
Net decrease in cash and bank (19 378) (52 209)
Cash and bank balances at the 161 849 214 058
beginning of the year
Cash and bank balances at the end of 142 471 161 849
the year
abridged group statement of changes
in equity
Audited Audited
Year ended Year ended
30.06.2002 30.06.2001
R 000 R 000
Opening balance 902 713 789 119
Net profit for the year 199 364 164 613
Dividends paid (40 000) (55 820)
Net proceeds/(cost) of issue of shares 16 (29)
Unrealised increase on translation of net 21 143 4 830
worth of foreign subsidiaries
Closing balance 30 June 2002 1 083 236 902 713
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 in
all material respects with those adopted in the annual financial statements for
the year ended 30 June 2001. During the year the group adopted the equity method
of accounting for joint ventures.
3. Material subsequent events
No material events have occured subsequent to the year-end.
4. Changes in the business
There were no material changes in the composition of the business during the
year.
5. Audit opinion
The results have been audited by KPMG Inc. and the unqualified audit opinion is
available on request from the company secretary at the company`s registered
office.
6. Capital commitments
Capital expenditure commitments amounted to R32 883 000.
7. Litigation and claims
There were no material litigation claims or undisclosed liabilities as at 30
June 2002.
8. Segmental analysis
Results for the year ended 30 June 2002
Operating
income after Net
R 000s Revenue % depreciation % assets* %
Transport and 1 589 388 27 182 478 59 703 447 67
Logistics
- Freight and 1 285 313 146 364 600 122
logistics
- Passenger 304 075 36 114 103 325
Motor and
Financial
Services 4 405 632 73 128 726 41 352 684 33
- Retail 4 263 906 106 566 311 452
- Financial 141 726 22 160 41 232
Total 5 995 020 100 311 204 100 1 056 131 100
Results for the year ended 30 June 2001
Operating
income after Net
R 000s Revenue % depreciation % assets* %
Transport and 1 378 851 26 145 777 60 547 944 66
Logistics
- Freight and 1 105 228 113 146 442 732
logistics
- Passenger 273 623 32 631 105 212
Motor and
Financial
Services 3 899 806 74 97 451 40 283 443 34
- Retail 3 768 050 86 905 265 857
- Financial 131 756 10 546 17 586
Total 5 278 657 100 243 228 100 831 387 100
* Net assets includes capital and reserves, minority interests, vendors for
businesses acquired, interest bearing borrowings and short term borrowings
reduced by cash and bank balances.
COMMENTS
The directors are pleased to announce strong results for the year ended 30 June
2002. Operating income after depreciation increased by 28% against a growth in
revenue of 14%. Headline earnings and headline earnings per share increased by
26%.
The group`s overall margin improved from 4,6% to 5,2%. Return on average capital
employed was 33% (2001: 32%) with a return on shareholders` funds of 20% (2001:
19%).
The group`s operations generated cash of R252 million. The group in turn re-
invested a net R299 million in maintaining and expanding its operations.
The balance sheet is strong with cash of R143 million held at the year-end
(2001: R162 million). The group was cash positive at year end as a result of
good working capital management. The group`s average borrowings during the year
was in the region of R225 million (2001: R150 million). This gives a normalised
debt to equity ratio of 21% (2001: 17%). The net asset value of the company
increased substantially to 1 421 cents (2001: 1 186 cents) per share.
Inventory levels rose mainly as a result of higher new vehicle prices and
additional investment in used vehicle inventory to facilitate used vehicle
sales. The Motors Division also took on additional new vehicle stock in June in
anticipation of the price increases due on 1 July 2002. The increase in debtors
is attributable mainly to enhanced sales activities.
Segmental Analysis
Revenue in the Transport & Logistics Division grew by 15%. Notwithstanding the
general slow-down in domestic and international economic activity, the division
was able to increase its operating income after depreciation by 25% and improve
its margin to 11,5% (2001: 10,6%). Net assets employed rose by 28% to R703
million.
The Motor & Financial Services Division grew its revenue by 13% as a result of
strong demand during the year for both new and used vehicles. The margin from
retail improved from 2,3% to 2,5% and the overall margin from 2,5% to 2,9%.
Operating income after depreciation increased by 32% and net assets employed
rose 24% to R353 million.
Corporate Activity
98% of the growth achieved during the year represented organic growth.
The Freight Division continued to expand its operations in the SADEC countries,
in particular in Moambique and Tanzania. It also acquired a stake in an express
delivery business in Botswana. The motor dealerships acquired by the Motors
Division in February 2002 from Senwes have been bedded down and are performing
well.
With effect from 1 July 2002, Mvelaphanda Strategic Investments (Proprietary)
Limited ("Mvelephanda") acquired:
A 25% equity stake in Unitrans Fuel & Chemical (Proprietary) Limited; and
A 25% equity stake in Unitrans Express Deliveries (Proprietary) Limited.
These transactions demonstrate the group`s commitment to ensuring that its
operations are appropriately structured to achieve optimal growth in the years
to come in the markets that it serves.
The introduction of Mvelaphanda as a strategic partner is expected to generate
exciting opportunities into the future.
Corporate Governance
The group is committed to the principles of sound corporate governance and is
substantially compliant with the requirements of the King Report on Corporate
Governance for South Africa 2002 ("King 2"). A phased-in approach towards full
compliance with the recommendations of King 2 has been adopted and an
appropriate balance between performance and corporate constraints is being
sought.
Prospects
Unitrans has a leading position in a number of its markets, has an excellent
management team and a sound financial base. It remains committed to maximising
organic growth in all its existing markets. At the same time it will assess and
evaluate local and foreign acquisition opportunities.
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.
For and on behalf of the Board
D C Brink K J Grov
Chairman Chief Executive
Dividend
Dividend No. 29 of 84,5 cents per share, being the total dividend for the
financial year ended 30 June 2002 (2001: 78 cents per share) has been declared
payable on 7 October 2002 to those shareholders recorded in the books of the
company at the close of business on 4 October 2002.
The dividend is declared in the currency of the Republic of South Africa.
Last Date to Trade Shares
Cum dividend: Friday 27 September 2002
Shares trade ex dividend: Monday 30 September 2002
Record date: Friday 4 October 2002
Payment date: Monday 7 October 2002
No dematerialisation or rematerialisation of shares will be allowed for the
period from 30 September 2002 to 4 October 2002, both dates inclusive.
By Order of the Board
J V Radnay
Secretary
20 August 2002
Registered office:
263 Oxford Road, Illovo, Johannesburg 2196
Telephone: 011-442-8551, Telefax: 011-442-7802/20
Transfer secretaries:
Computershare Investor Services 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*, P.J. Dieperink,
K.J. Grov, M.J. Jooste*, S.M. Keys, D. Konar*,
R.H. Naisby, P.K. Quarmby*, R.W. Rees*,
D.M. van der Merwe* *non-executive
Secretary: J.V. Radnay
Date: 20/08/2002 04:13:00 PM Produced by the JSE SENS Department
