| Thu 11 Sep 2003, 17:16 | | UNAUDITED RESULTS FOR THE 6 MONTH PERIOD |
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UNITED SERVICE TECHNOLOGIES LIMITED -
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 2003 (prepared in
accordance with US GAAP)
UNITED SERVICE TECHNOLOGIES LIMITED
PROFIT AND LOSS ACCOUNT
Six months Six months Year to
ZAR000"s to 31 July 03 to 31 July 02 31 Jan 03
Income
Operating loss (1 518) (1 815) (3 596)
Income attributable to
associated company 62 159 68 804 150 547
Interest received 24 59 112
Profit before tax 60 665 67 048 147 063
Taxation attributable to
associated company 16 058 20 475 44 757
Net Income 44 607 46 573 102 306
-
Number of ordinary shares
in issue (000) 54 583 54 583 54 583
Basic earnings per share
(cents) 81.7 85.3 187.4
Headline earnings per share
(cents) (before
amortisation of goodwill) 81.7 85.3 188.7
Reconciliation of headline earnings
Basic earnings 44 607 46 573 102 306
Amortisation of goodwill - - 714
Headline earnings 44 607 46 573 103 020
BALANCE SHEET
ZAR000"s 31 July 03 31 July 02 31 Jan 03
Fixed assets
Investments 773 903 729 560 839 356
Current assets 13 569 15 700 8 436
Current liabilities (6 631) (5 604) (69)
780 841 739 656 847 723
Capital and reserves
Ordinary share capital 47 581 47 581 47 581
Reserves 733 260 692 075 800 142
Shareholders" funds 780 841 739 656 847 723
STATEMENT OF MOVEMENT IN EQUITY
Six months Six months Year to
ZAR000"s to 31 July 03 to 31 July 02 31 Jan 03
Opening balance 847 723 750 862 750 862
Profit and loss account 44 607 41 115 102 306
Dividend (6 550) - (5 458)
Foreign exchange
translation reserve (118 538) (53 758) (183 835)
Movement in equity of
associated company 13 599 1 437 183 848
780 841 739 656 847 723
The market value of the listed investment on 31 July 2003 was SA Rand 2 414
million (31 July 2002: SA Rand 1 591 million)
CASH FLOW STATEMENT
Six months Six months Year to
ZAR000"s to 31 July 03 to 31 July 02 31 Jan 03
Net cash inflow/(outflow)
from operating activities 5 043 (3 397) (3 648)
Return on investments 87 1 719 1 770
Net increase/(decrease)
in cash 5 130 (1 678) (1 878)
Cash at beginning of the
period 8 378 10 256 10 256
Cash at the end of the
period 13 508 8 578 8 378
COMMENTS
Uniserv Results
United Service Technologies Limited ("Uniserv") is listed on the JSE Securities
Exchange South Africa. 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 30.3% of the equity in UTi.
We equity account the results of UTi in Uniserv. Headline earnings per share in
Uniserv decreased by 4.2% to 81.7 SA cents (2002: 85.3 SA cents). This decrease
was caused principally by the significant strengthening of the SA Rand in the
current period, but was offset by UTI"s strong US Dollar earnings growth.
Despite the strengthening of the rand, the value of our investment in UTi
increased to SA Rand 2 414 million from SA Rand 1 519 million in the prior year.
These results have been prepared in accordance with US GAAP, which accounting
policies are consistent with those applied in the previous reporting period.
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. As usual we present a condensed
consolidated Income Statement and Balance Sheet of UTi translated into SA Rand.
More than 80% of the company"s net revenue and 75% of the operating profits are
from a non-African source. When reported in SA Rands, the results are negatively
affected by the significant depreciation of the US Dollar - a depreciation of
37%.
Net income for the six-month period was SA Rand 152 million (2002: SA Rand 134
million) - an increase of 14%. This compares with an increase of 55% in US
Dollars terms. As a result of the additional 4 600 000 ordinary share issued for
cash at US Dollar 23.00 per share on 18 December 2002, UTi"s earnings per share
declined in SA Rand terms by 6% - an increase of 22% in US Dollars.
Despite showing an increase in gross and net revenues of 35% and 68%
respectively in US Dollars, this translates to a decrease in gross revenue of
1.2% and an increase of 22.9% in net revenue for the six-month period in SA
Rand. Similarly an increase of 35% in operating income in US Dollar terms
translates to a decrease of 1.2% in SA Rand at SA Rand 205 million (2002: SA
Rand 208 million).
The company"s operating profit margin was 9.5% of net revenues. This compared
with 11.8% for the same period a year ago. Excluding Standard Corporation, the
operating margin was 13.3% in the second quarter fiscal 2004, compared with
13.1% in the corresponding prior year quarter.
Total cash and cash equivalents, net of short-term bank borrowings, were SA Rand
848 million (2002: SA Rand 568 million).
UTi"s global network achieved US Dollar gross and net revenue gains in all
geographic regions over the prior-year period. The Americas benefited from the
Standard acquisition - contributing US Dollar 75 million to both the gross and
net revenues during the six-month period. Asia-Pacific had a particularly strong
half with gross and net revenue in US Dollars increasing by 25%. Operating
profit for this region increased by 48%.
Global trade volumes remain softer than expected. Last year the company"s air
charter programme benefited from the lockout as a result of the west coast port
labour despute. This benefit is not expected in the second half of this year.
UTi continues to partner with customers to deliver quantified value through
customised supply chain solutions. The company"s confidence in its market
position is demonstrated by an on going investment in skills and talent of its
global sales and customer management organisation.
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 24 September 2003, at this Internet site or at
www.companyboardroom.com.
MJ Wessels
Chairman
11 September 2003
UTi Worldwide Inc
CONDENSED CONSOLIDATED INCOME STATEMENT*
Six months Six months Year to
ZAR000"s to 31 July 03 to 31 July 02 31 Jan 03
Gross revenue 5 409 896 5 477 929 11 931 102
Freight consolidation (3 240 025) (3 713 087) (7 803 458)
costs
Net revenue 2 169 871 1 764 842 4 127 644
Staff costs (1 182 442) (897 197) (2 090 089)
Depreciation (56 698) (51 799) (113 942)
Amortisation (2 403) - (2 019)
Other operating (723 097) (608 115) (1 457 580)
expenses
Operating income 205 231 207 731 464 014
Interest 3 998 (4 078) (4 956)
income/(expense)
Gain/(losses) on 2 545 (3 380) (17 589)
foreign exchange
Pretax income 211 774 200 273 441 469
Income tax expense (53 046) (56 810) (127 381)
Income before minority 158 728 143 463 314 088
interests
Minority interests (6 440) (9 368) (15 377)
Net income 152 288 134 095 298 711
- 486 519 1 127
Diluted earnings per
ordinary share (SA
cents)
ADDITIONAL INFORMATION
EBITDA (Earnings before 264 332 259 530 579 975
interest, taxation,
depreciation and
amortisation)
Headline earnings 152 288 134 095 300 730
(before amortisation of
goodwill)
Headline earnings per 486 519 1 135
ordinary share (SA
cents)
Weighted average number 31 306 056 25 823 315 26 504 401
of ordinary shares -
diluted
* Translated at the average exchange rate for the period of 7.854 SA Rand to
1 US Dollar (31 July 2002: 10.731).
CONDENSED CONSOLIDATED BALANCE SHEET**
31 July 03 31 July 02 31 Jan 03
Non-current assets
Property, plant & equipment 368 134 372 294 380 326
Goodwill and intangibles 969 061 847 305 1 072 220
Deferred income tax assets 16 444 16 613 10 471
Other non-current assets 72 520 40 217 64 338
1 426 159 1 276 429 1 527 355
Current assets
Trade & other receivables 2 315 970 2 484 983 2 389 324
Cash and cash equivalents 1 103 916 811 357 1 434 779
3 419 886 3 296 340 3 824 103
Total assets 4 846 045 4 572 769 5 351 458
Shareholders" equity 2 556 482 2 025 674 2 766 459
Minority interests 25 123 31 486 23 033
Non-current liabilities
Long-term borrowings 54 807 3 675 1 698
Deferred income tax 14 443 17 207 14 021
liabilities
Other non-current liabilities 8 200 78 172 69 356
77 450 99 054 85 075
Current liabilities
Trade & other payables 1 833 358 2 050 557 2 018 701
Short-term borrowings 272 307 266 730 363 369
Other current liabilities 81 325 99 268 94 821
2 186 990 2 416 555 2 476 891
Total liabilities and 4 846 045 4 572 769 5 351 458
shareholders" equity
** Translated at the exchange rate of 7.380 SA Rand to 1 US Dollar (31 July
2002: 10.236; 31 January 2003: 8.534).
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
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
CORPORATE FINANCE
Date: 11/09/2003 05:01:55 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
