| Wed 7 Apr 2004, 17:31 | | YEAR END RESULTS - 31 JANUARY 2004 |
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UNITED SERVICE TECHNOLOGIES LIMITED - YEAR END RESULTS - 31 JANUARY 2004
UNITED SERVICE TECHNOLOGIES LIMITED
(Incorporated in the British Virgin Islands)
JSE Code: USV
ISIN: ZAE000012431
YEAR END RESULTS - 31 JANUARY 2004 (PREPARED IN ACCORDANCE WITH USGAAP)
PROFIT AND LOSS ACCOUNT
Reviewed Audited
ZAR000"s 31 Jan 04 31 Jan 03
Income (1 178) (1 004)
Operating loss
Foreign exchange loss (1 467) (2 592)
Income attributable to associated company* 132 106 150 547
Interest received 42 112
Profit before tax 129 503 147 063
Taxation attributable to associated 30 437 44 757
company*
Net Income 99 066 102 306
Number of ordinary shares in issue (000) 54 583 54 583
Basic and diluted earnings and headline 181.5 187.4
earnings per share (cents)
Dividend paid per share (cents) 12.5 10.0
* Translated at the average exchange rate for the year of 7.421 South African
Rand to 1 United States Dollar (31 Jan 2003: 10.197).
BALANCE SHEET
Reviewed Audited
ZAR000"s 31 Jan 04 31 Jan 03
Non-current assets
Investments** 815 764 839 356
Current assets 6 121 8 436
Current liabilities (567) (69)
821 318 847 723
Capital and reserves
Ordinary share capital 47 581 47 581
Reserves 773 737 800 142
Shareholders" funds 821 318 847 723
Net asset value per share (cents) 1 504.7 1 553.1
** Translated at the year end exchange rate of 7.055 South African Rand to 1
United States Dollar (31 Jan 2003: 8.534).
STATEMENT OF MOVEMENT IN EQUITY
Reviewed Audited
ZAR000"s 31 Jan 04 31 Jan 03
Opening balance 847 723 750 862
Profit and loss account 99 066 102 306
Dividend (6 823) (5 458)
Foreign exchange translation reserve (152 325) (183 835)
Movement in equity of associated company 33 677 183 848
821 318 847 723
The market value of the listed investment on 31 January 2004 was SA Rand 2 695
million (31 January 2003: SA Rand 1 883 million)
CASH FLOW STATEMENT
Reviewed Audited
ZAR000"s 31 Jan 04 31 Jan 03
Net cash outflow from operating activities (2 142) (3 648)
Interest received 42 112
Dividend received 6 613 7 116
Dividend paid (6 823) (5 458)
Net decrease in cash (2 310) (1 878)
Cash at beginning of the year 8 378 10 256
Cash at the end of the year 6 068 8 378
PROPOSAL OF DIVIDEND
An ordinary dividend of 12.5 SA cents (2003: 12.5 SA cents) per share has been
proposed by the directors and is to be confirmed by the shareholders at the
Annual General Meeting (date of Annual General Meeting and salient dates of the
ordinary dividend to be advised).
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 30.0% (2003: 30.3%) of the equity in
UTi.
UTi reported strong growth in revenues and net income for the year ended
31 January 2004, as more fully detailed below. The good performance was offset
in Uniserv by the significant strengthening of the Rand against the US Dollar,
and also by the additional shares issued by UTi at the end of the 2003 financial
year. Despite these factors, the value Uniserv"s investment in UTi increased by
43% from SA Rand 1 883 to 2 695 million.
We equity account the results of UTi in Uniserv. Basic and diluted earnings and
headline earnings per share in Uniserv decreased by 3% to 181.3 SA cents (2003:
187.4 SA cents).
The results have been prepared in accordance with US GAAP, using accounting
policies which are consistent with those applied in the previous year.
Changes in Directorate
Mr Ian Whitecourt and Mr Chris Spencer joined the board of Uniserv in December
2003 as independent non-executive directors.
UTi Worldwide Inc.
UTi is a global, non-asset based supply chain management business providing
supply chain management 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
UTi reported its results for the year to 31 January 2004 on 6 April 2004. For
the year ended 31 January 2004, UTi"s gross revenue advanced 28% to $1 503
million from $1 170 million a year ago. Net revenues for fiscal 2004 totalled
$596.1 million, a 47% increase over $404.8 million last year. Standard
Corporation, which was acquired effective October 2002, contributed to both
gross and net revenues for the last quarter of fiscal 2003, compared with its
contribution for the full twelve months in fiscal 2004.
Operating income for the year totalled $59.1 million, a 30% increase over $45.5
million in fiscal 2003. Operating margin (operating income expressed as a
percentage of net revenues) equaled 9.9% in the current twelve-month period,
compared with 11.2% a year ago, reflecting the impact of a full year"s
contribution from Standard, which traditionally operates at a lower operating
margin when compared to other UTi operations.
Net income for fiscal 2004 rose 53% to $44.8 million, compared with
$29.3 million a year earlier. On a per share basis, net income climbed to $1.42
per diluted share, based on 31.5 million weighted average shares outstanding,
from $1.11 per diluted share, based on 26.5 million weighted average shares
outstanding, in fiscal 2003.
At 31 January 2004, the company reported total cash and cash equivalents, net of
outstanding bank lines of credit and short-term bank borrowings, of $137.2
million, compared with $125.5 million at 31 January 2003.
More information on UTi is available on the Internet at www.go2uti.com. The UTi
results were published on SENS on 6 April 2004 and are available on the UTi
website at www.go2uti.com. The investor conference call hosted by UTi management
on 6 April 2004 can be accessed for a period of one year at www.go2uti.com or
www.fulldisclosure.com.
Review by the Independent Auditors
The financial information has been reviewed, but not audited, by Deloitte &
Touche, whose unqualified review report is available for inspection at the
company"s registered office.
MJ Wessels
Chairman
7 April 2004
Transfer agents in South Africa
Computershare Limited 70 Marshall Street Marshalltown Johannesburg 2001
Registered office
First Floor Bank of Nova Scotia Building Road Town, Tortola British Virgin
Islands
Date: 07/04/2004 05:15:14 PM Produced by the JSE SENS Department
