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Unitrans - GROUP AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
UNITRANS LIMITED
Registration number 1967/003403/06
JSE Share Code: UTR
ISIN: ZAE000007670
("Unitrans")
Financial highlights
* Revenue up 23%
* Operating Income up 24%
* Headline earnings per share up 20%
GROUP AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003
The board of directors of Unitrans announces the following audited group
results:
ABRIDGED GROUP INCOME STATEMENT
Audited Audited
Year ended Year ended
30.06.2003 30.06.2002 %
R 000 R 000 increase
Revenue 7 391 890 5 995 020 23,3
Operating income before 561 386 470 584 19,3
depreciation
Depreciation of property, 175 802 159 380
vehicles and equipment
Operating income after 385 584 311 204 23,9
depreciation
Investment income 6 138 -
(Loss)/profit on disposal of (585) 18 086
property, vehicles and
equipment
Goodwill amortisation (17 585) (13 145)
Net finance costs (53 560) (32 992)
Profit before taxation 319 992 283 153 13,0
Taxation expense 90 668 79 642
Profit after taxation 229 324 203 511 12,7
Share of associate and joint 4 252 1 849
ventures" losses
Minority interests 9 206 2 298
Net profit for the year 215 866 199 364 8,3
76 278 76 204
Weighted average number of
ordinary shares in issue
(`000)
Weighted average number of
ordinary shares that would be
issued on the conversion of 205 281
all the dilutive potential
ordinary shares (`000)
Weighted average number of 76 483 76 485
shares for purposes of
calculating diluted earnings
per share (`000)
Earnings per share (cents)
- basic 283,0 261,6 8,2
- fully diluted 282,2 260,7
Headline earnings per share
(cents)
- basic 306,6 255,1 20,2
- fully diluted 305,8 254,2
Determination of headline
earnings
Net profit for the year 215 866 199 364
Adjustment for:
- loss/(profit) on disposal of 585 (18 086)
property, vehicles and
equipment
- goodwill amortisation 17 585 13 145
234 036 194 423
Taxation relief on loss on (175) -
disposal of property, vehicles
and equipment
Headline earnings 233 861 194 423 20,3
Abridged group balance sheet
Audited Audited
30.06.2003 30.06.2002
R 000 R 000
Assets
Non-current assets 1 200 305 1 027 967
Property, vehicles and equipment 934 926 817 015
Goodwill 48 057 51 096
Investment in associate and joint ventures 87 182 63 226
Deferred taxation asset 10 716 6 752
Other non-current assets 119 424 89 878
Net advances (Note 1) - -
Advances (after providing for doubtful 261 146 538 347
debts)
Less liabilities relating to advances (261 146) (538 347)
Current assets 1 299 315 1 212 652
Inventories 708 487 572 320
Trade and other receivables 524 248 497 861
Cash and bank balances 66 580 142 471
Total assets 2 499 620 2 240 619
Equity and Liabilities
Interest of shareholders of Unitrans Limited 1 195 071 1 083 236
Share capital and premium 404 874 404 857
Reserves 790 197 678 379
Minority interests 38 567 5 325
Non-current liabilities 159 397 168 715
Deferred taxation liabilities 132 878 126 630
Long-term provisions 9 706 22 983
Vendors for businesses acquired 12 023 8 000
Interest-bearing borrowings 4 790 11 102
Current liabilities 1 106 585 983 343
Trade and other payables 807 493 741 192
Floorplan creditors 198 678 92 568
Provisions 2 515 2 545
Taxation 46 530 56 099
Vendors for businesses acquired 1 188 1 650
Short-term borrowings 50 181 89 289
Total equity and liabilities 2 499 620 2 240 619
Number of shares in issue 76 420 76 251
Net asset value per share (cents) 1 564 1 421
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
30.06.2003 30.06.2002
R 000 R 000
Cash generated by operations 561 386 470 584
Other non-cash movements 1 168 -
Investment income 6 138 -
Decrease/(increase) in working capital 9 827 (73 346)
- Inventories (136 167) (115 121)
- Trade and other receivables (26 387) (100 244)
- Trade and other payables 66 271 49 452
- Floorplan creditors 106 110 92 567
Net finance costs and taxation paid (149 922) (104 838)
Cash available from operations 428 597 292 400
Dividends paid (71 876) (40 000)
Net cash inflow from operations 356 721 252 400
Net investment to maintain operations (72 691) (84 052)
Decrease in long-term provision (13 277) (2 545)
Non-cash flow items (18 325) 8 301
Investment to expand operations
- property, vehicles and equipment (214 045) (129 563)
- acquisition of business / non-current (72 432) (85 607)
assets
Net cash utilised by operations (34 049) (41 066)
Interest-bearing borrowings repaid (6 312) (24 857)
Increase/(decrease) in vendors for 3 561 (15 343)
businesses acquired
(Decrease)/increase in short-term (39 108) 61 872
borrowings
Net proceeds from issue of shares 17 16
Net cash (outflow)/inflow from financing (41 842) 21 688
activities
Net decrease in cash and bank balances (75 891) (19 378)
Cash and bank balances at the beginning 142 471 161 849
of the year
Cash and bank balances at the end of the 66 580 142 471
year
Abridged group statement of changes in equity
Audited Audited
Year ended Year ended
30.06.2003 30.06.2002
R 000 R 000
Opening balance 1 083 236 902 713
Net profit for the year 215 866 199 364
Dividends paid (64 432) (40 000)
Dividends paid on "A" shares in a subsidiary (452) -
Net proceeds of issue of shares 17 16
Statutory reserve creation 1 168 -
Unrealised (decrease)/increase on (40 332) 21 143
translation of net worth of foreign
subsidiaries
Closing balance 30 June 2003 1 195 071 1 083 236
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 2002.
3. Material subsequent events
No material events have occurred subsequent to the year-end.
4. Changes in the business
There were no material changes in the composition of the business during the
period.
5. Audit opinion
The auditors, KPMG Inc., have issued unqualified audit opinions on the 30 June
2003 annual financial statements and the summarised changes to abridged results
contained herein. The reports are available for inspection at the company"s
registered office.
6. Capital commitments
Capital expenditure commitments amounted to R77 088 000.
7. Litigation and claims
There were no material litigation claims or undisclosed liabilities as at 30
June 2003.
8. Segmental analysis
Results for the year ended 30 June 2003
Operating
income after Capital
R 000 Revenue % depreciation % employed* %
Transport and 1 830 702 25 212 383 55 814 880 66
Logistics
- Freight and 1 483 014 169 923 695 595
logistics
- Passenger 347 688 42 460 119 285
Motor and 5 561 188 75 173 201 45 420 360 34
Financial
Services
- Retail 5 419 818 144 941 387 012
- Financial 141 370 28 260 33 348
Total 7 391 890 100 385 584 100 1 235 240 100
Results for the year ended 30 June 2002
Operating
income after Capital
R 000 Revenue % depreciation % employed* %
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 4 405 632 73 128 726 41 352 684 33
Financial
Services
- 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
* Capital Employed is capital and reserves plus minority interests plus vendors
for businesses acquired plus interest-bearing borrowings plus short-term
borrowings less cash and bank balances.
COMMENTARY
The directors are pleased to announce a 24% growth in operating income to R386m
(2002: R311m) for the year ended 30 June 2003, against an increase in revenue of
23%. 90% of the revenue growth achieved during the year represented organic
growth. There was strong growth of 20% in headline earnings over the period to
R234m (2002: R194m). In each of the last four years the group has achieved
headline earning growth per share in excess of 20% per annum. The effective
compound growth over this four year period was in excess of 33%.
The group"s operating margin was maintained at 5,2%. The return on average
capital employed was 34% (2002: 33%) with a return on shareholders" funds of 19%
(2002: 20%) being achieved.
The net cash inflow from operations was R357m (2002: R252m). The group invested
R214m (2002: R130m) in property, vehicles and equipment to expand operations and
R73m (2002: R84m) to maintain operations.
The balance sheet is strong with cash of R67m held at the year end (2002:
R142m). The group remained cash positive at year end as a result of continued
focus on working capital management. In particular, collections of trade
receivables throughout the group were well managed and trade and other
receivables at year end were R524m (2002: R498m). The core average borrowings of
the group during the year were R350m (2002: R225m) giving a normalised debt to
equity ratio of 28% (2002: 21%). The net asset value of the share increased to 1
564 cents (2002: 1 421 cents).
Inventory levels and values rose mainly as a result of higher vehicle prices,
both new and pre-owned. In addition, strong demand for new passenger vehicles in
the second half resulted in an increase in pre-owned inventory.
Segmental Analysis
Revenue in the Transport & Logistics division grew by 15%. Despite continuing
pressures on the domestic and international economies, operating income after
depreciation increased by 16%. Capital employed increased by 16% to R815m (2002:
R703m).
As a result of strong demand, particularly in the second half for both new and
pre-owned vehicles, the Motor & Financial Services division grew its revenue by
26%. Operating income after depreciation increased by 35% and capital employed
rose by 19% to R420m (2002: R353m).
Corporate Activity
The Transport & Logistics division secured several major new contracts providing
additional annuity style income. Certain other contracts were renewed during the
period. The three "stump-to-mill timber" operations acquired in KwaZulu-Natal
have been successfully integrated into the Freight division. The Freight
division"s operations in Mozambique, Malawi and Tanzania, which form part of the
division"s expansion into the SADEC countries, have performed well.
The MAN franchise awarded to the Motor division in Polokwane is performing to
expectations.
The strategic alliance formed with Mvelaphanda Strategic Investments
(Proprietary) Limited ("Mvelaphanda") via the acquisition by Mvelaphanda of a
25% equity stake in each of Unitrans Fuel and Chemical (Proprietary) Limited and
Unitrans Express Deliveries (Proprietary) Limited has continued to provide
benefits and has assisted with growth in those operations.
The group"s commitment to ensuring that its operations are appropriately
structured to achieve optimal growth in the future remains unchanged.
Social Responsibility and Manpower
The group has established certain initiatives to counter the threat of
HIV/Aids.This is being done in partnership with national and industry
initiatives aimed at addressing the impact of the disease.
The group continues to pursue both international and domestic accreditation in
the field of environmental, safety and health management and, through a system
of monitoring, review and training, continuously strives to maintain and, where
practicable, raise operating standards of safety, quality and protection of the
environment.
Employees at all levels are encouraged to realise their potential via a
formalised approach to education, development and training.
Corporate Governance
The group is substantially compliant with the requirements of the King Report on
Corporate Governance for South Africa 2002. An appropriate balance between
performance and corporate constraints is being sought. A full report on
corporate governance issues will be contained in the 2003 annual report.
Prospects
The recent cuts in interest rates, coupled with the likelihood of further cuts
in the year ahead, augurs well for the group"s operations and, in particular,
for the Motor Retail division.
Unitrans has retained a leading position in a number of its markets. It remains
committed to maximising organic growth and will assess and evaluate local and
foreign acquisition opportunities that fit the group"s strategy.
Notwithstanding the continuing pressures on domestic and world economies, the
board is confident that the group is on track to meet its objectives and should
continue to deliver real growth in earnings in the year ahead.
For and on behalf of the Board
D C Brink K J Grove
Chairman Chief Executive
Dividend
Dividend No. 30 of 93 cents per share being the total dividend for the year
ended 30 June 2003 (2002: 84,5 cents per share) has been declared payable on 6
October 2003 to those shareholders recorded in the books of the company at the
close of business on 3 October 2003.
The dividend is declared in the currency of the Republic of South Africa.
Last date to trade cum dividend Friday 26 September 2003
Shares trade ex dividend Monday 29 September 2003
Record date Friday 03 October 2003
Payment date Monday 06 October 2003
No dematerialisation or rematerialisation of shares may take place between
Monday 29 September 2003 and Friday 03 October 2003, both dates inclusive.
Dividend Policy
Going forward the Board will be reviewing its dividend policy in order to
determine whether its position on dividend cover is too conservative.
Shareholders will be advised of the decision in this regard when the interim
results for the six months ending 31 December 2003 are published.
By Order of the Board
J V Radnay
Secretary 26 August 2003
Registered office: 263 Oxford Road, Illovo, Johannesburg 2196
Telephone: 011-912-7000, Telefax: 011-442-7802/20
Transfer secretaries: Computershare Limited: Investor Services Division
Ground Floor, Edura House, 70 Marshall Street, Johannesburg 2001
Telephone: 011-370-7700, Telefax: 011-688-5200
Directors: D.C. Brink*, B.C. Bruce*, P.J. Dieperink, K.J. Grove, 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
Sponsor
Gensec Bank
www.unitrans.co.za
Date: 26/08/2003 03:46:57 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
