| Wed 4 Sep 2002, 0:00 | | United Service Technologies Limited - Unaudited Re |
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United Service Technologies Limited - Unaudited results for the 6 month period
ended 31 July 2002
UNITED SERVICE TECHNOLOGIES LIMITED
(Incorporated in the British Virgin Islands)
JSE Code: USV ISIN: ZAE000012431
Unaudited results for the 6 month period ended 31 July 2002 (prepared in
accordance with US GAAP)
UNITED SERVICE TECHNOLOGIES LIMITED
PROFIT AND LOSS ACCOUNT
Six months Six months Year to
SAR000`s to 31/7/02 to 31/7/01* 31/1/02
Income (1 815) 71 3 199
Operating profit/(loss)
Income attributable to associated
company 68 804 36 419 86 747
Interest received 59 185 382
Ordinary profit before tax 67 048 36 675 90 328
Taxation attributable to
associated company 20 475 9 124 25 484
Net Income 46 573 27 551 64 844
Number of ordinary shares
in issue (000) 54 583 54 583 54 583
Basic earnings per share (cents) 85.3 50.5 118.8
Headline earnings per
share (cents) (before
amortisation of goodwill) 85.3 64.6 150.1
* The 2001 interim comparatives have been restated to reflect the change in
reporting in terms of US GAAP. This restatement has resulted in increasing net
income from a previously reported R24.7 million to R27.6 million. In addition it
resulted in headline earnings per share (before amortisation of goodwill)
increasing from a previously reported amount of 62.7 SA cents to 64.6 SA cents.
Reconciliation of Headline Earnings
Basic earnings 46 573 27 551 64 844
Amortisation of goodwill - 7 694 17 073
Headline earnings 46 573 35 245 81 917
BALANCE SHEET
SAR000`s 31/7/02 31/7/01 31/1/02
Fixed assets
Investments 729 560 571 060 740 669
Current assets 15 700 12 741 10 261
Current liabilities (5 604) (5 753) (68)
739 656 578 048 750 862
Capital and reserves
Ordinary share capital 47 581 47 581 47 581
Reserves 692 075 530 467 703 281
Shareholders` funds 739 656 578 048 750 862
STATEMENT OF MOVEMENT IN EQUITY
Six months Six months Year to
SAR000`s to 31/7/02 to 31/7/01 31/1/02
Opening balance 750 862 534 133 534 133
Profit and loss account 41 115 27 551 64 844
Foreign exchange
translation reserve (53 758) 16 075 152 331
Movement in equity of
associated company 1 437 289 (446)
739 656 578 048 750 862
The market value of the listed investment on 31 July 2002 was R1.591 million
CASH FLOW STATEMENT
Six months Six months Year to
SAR000`s to 31/7/02 to 31/7/01 31/1/02
Net Cash (outflow)/inflow
from operating activities (3 397) 301 3 202
Return on investments and
servicing of financing 1 719 5 937 557
Net (decrease)/increase
in cash (1 678) 6 238 3 759
Cash at beginning of
the period 10 256 6 497 6 497
Cash at the end of
the period 8 578 12 735 10 256
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% of the equity in UTi.
We equity account the results of UTi in Uniserv. Headline earnings per share in
Uniserv (prior to amortisation of goodwill in UTi) increased 32% to 85.3 SA
cents (2001: 64.6 SA cents).
UTi Worldwide Inc.
UTi is a global, non-asset based supply chain management business providing
logistics services and planning and optimisation solutions. The company`s
services include freight forwarding, customs brokerage, contract logistics and
services such as co-ordination of shipping and storage of raw materials,
supplies, components and finished goods. Through its supply chain planning and
optimisation services, the company assists clients in designing and implementing
systems that improve predictability and visibility and reduce the overall costs
of their supply chains. The company has a global and diverse customer base
ranging from large multinational enterprises to smaller local businesses.
UTi Results
The UTi results are reported in US Dollars. The results of Uniserv and the
Uniserv share price on the JSE Securities Exchange SA are denominated in SA
Rand. To assist in understanding the operations of UTi we have presented a
condensed consolidated Income Statement and Balance Sheet of UTi translated into
SA Rand.
With effect from 1 February 2002, as a result of their Nasdaq listing, UTi
changed the basis of reporting from International Accounting Standards (IAS) to
United States Generally Accepted Accounting Principles (US GAAP). Prior year
results have been restated to US GAAP from IAS. For the year commencing 1
February 2002, UTi adopted Financial Accounting Standard no. 142 "Goodwill and
Other Intangible Assets". This resulted in goodwill no longer being amortised.
Gross revenue increased by 57.2% (18% increase in US Dollar terms) to SAR 5.5
billion (2001: SAR 3.5 billion) for the six month period ended 31 July 2002. Net
revenue increased by 43.6% (7% increase in US Dollar terms) to SAR 1.8 billion
(2001: SAR 1.2 billion).
Operating income (before amortisation of goodwill) increased by 57.4% (18%
increase in US Dollar terms) to SAR 208 million (2001: SAR 132 million).
The company`s operating profit margin, excluding amortisation of goodwill,
improved 110 basis points to 11.8% of net revenues compared with 10.7% for the
same period a year ago.
The higher operating margins led to SAR 97 million in free cash flow for the six
month period. Total cash and cash equivalents, net of short-term bank
borrowings, were SAR 568 million.
UTi is beginning to reap the benefits of sales efforts made over the past 12
months. UTi has also focused on cost control measures. UTi has already realised
significant operating improvements through cost reductions, and its revenues are
now reflecting the investment it has made in developing major customer
relationships.
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 18 September 2002, at this Internet site or at
www.companyboardroom.com.
MJ Wessels
Chairman 5 September 2002
UTi Worldwide Inc
CONDENSED CONSOLIDATED INCOME STATEMENT**
Six months Six months Year to
SAR000`s to 31/7/02 to 31/7/01 31/1/02
Gross revenue 5 477 929 3 485 581 7 887 067
Freight consolidation costs (3 713 087) (2 256 698) (5 187 452)
Net revenue 1 764 842 1 228 883 2 699 615
Staff costs (897 197) (636 253) (1 382 824)
Depreciation (51 799) (37 352) (83 423)
Amortisation of goodwill - (21 328) (47 326)
Other operating expenses (608 115) (423 303) (923 048)
Operating income 207 731 110 647 262 994
Interest expense, net (4 078) (5 232) (10 732)
Gains/(losses) on
foreign exchange (3 380) (729) 152
Pretax income 200 273 104 686 252 414
Income tax expense (56 810) (25 292) (70 639)
Income before minority
interests 143 463 79 394 181 775
Minority interests (9 368) (3 731) (11 956)
Net income 134 095 75 663 169 819
Diluted earnings per
ordinary share (SA cents) 519 296 666
ADDITIONAL INFORMATION
EBITDA (Earnings before
interest, taxation,
depreciation and amortisation) 259 530 169 327 393 895
Headline earnings
(before amortisation
of goodwill) 134 095 96 991 217 145
Headline earnings per
ordinary share (SA cents) 519 380 852
Weighted average number
of ordinary shares - diluted 25 823 315 25 540 340 25 501 864
** Translated at the average exchange rate for the period of 10.731 South
African Rand to 1 United States Dollar (31/7/01: 8.024; 31/01/02: 8.864).
CONDENSED CONSOLIDATED BALANCE SHEET***
SAR000`s 31/7/02 31/7/01 31/1/02
Current assets
Trade & other receivables 2 484 983 1 735 710 2 333 861
Cash & cash equivalents 811 357 740 424 1 000 239
3 296 340 2 476 134 3 334 100
Non-current assets
Property, plant & equipment 372 294 264 303 356 101
Goodwill 847 305 575 106 874 815
Deferred income tax assets 16 613 16 214 16 345
Other non-current assets 40 217 37 776 38 891
1 276 429 893 399 1 286 152
Total assets 4 572 769 3 369 533 4 620 252
Current liabilities
Trade & other payables 2 050 557 1 371 694 1 976 780
Short-term borrowings 266 730 232 819 372 032
Other current liabilities 99 268 49 311 84 097
2 416 555 1 653 824 2 432 909
Non-current liabilities
Long-term borrowings 3 675 25 135 13 605
Deferred income tax liabilities 17 207 19 107 17 882
Other non-current liabilities 78 172 74 437 73 302
99 054 118 679 104 789
Minority interests 31 486 14 072 28 799
Shareholders` equity 2 025 674 1 582 958 2 053 755
*** Translated at the exchange rate of 10.236 South African Rand to 1 United
States Dollar (31/7/01: 8.268; 31/1/02: 11.419).
Transfer agents in South Africa
Computershare Investor Services Limited
10th Floor 11 Diagonal Street Johannesburg 2001
Registered office
First Floor Bank of Nova Scotia Building Road Town, Tortola British Virgin
Islands
Date: 04/09/2002 05:21:00 PM Produced by the JSE SENS Department
