| Tue 22 Feb 2005, 17:40 | | Unitrans - Announcement of results for the six mon |
|
Registration number 1967/003403/06
JSE share code UTR
ISIN ZAE000007670
("Unitrans" or "the company")
* Financial highlights
* Revenue up 19%
* Net profit for period up 11%
* Headline earnings up 10%
The board of directors of Unitrans announces the following unaudited results:
Abridged consolidated income statement
Unaudited
Six months Restated
ended Six months
ended
31 December 31 December
R000 2004 2003
Revenue 5 551 760 4 654 467
Operating income before 353 134 318 121
depreciation
Depreciation of property, (116 814) (98 866)
vehicles and equipment
Operating income after 236 320 219 255
depreciation
Investment income 1 840 3 662
(Loss)/profit on disposal (7 539) 382
of property, vehicles and
equipment
Impairment/amortisation of (497) (7 564)
goodwill
Net finance costs (21 821) (24 269)
Profit before taxation 208 303 191 466
Income taxation expense (64 202) (54 237)
Profit after taxation 144 101 137 229
Share of associates and 3 440 (755)
joint venture
profits/(losses)
Minority interests (3 286) (6 756)
Net profit for the period 144 255 129 718
Weighted average number of 82 752 75 740
shares in issue (`000s)
Weighted average number of
shares that would be
issued on the conversion
of all the
dilutive potential shares 999 671
(`000s)
Weighted average number of 83 751 76 411
shares for purposes of
calculating diluted
earnings per share (`000s)
Earnings per share
- basic (cents) 174,3 171,3
- basic as previously 171,2
stated (cents)
- fully diluted (cents) 172,2 169,8
- fully diluted as 170,2
previously stated (cents)
Headline earnings per
share
- basic (cents) 181,3 180,9
- basic as previously 180,7
stated (cents)
- fully diluted (cents) 179,1 179,3
- fully diluted as 179,7
previously stated (cents)
Note: earnings per share
is calculated on the
weighted number of shares
in issue during the period
Determination of headline
earnings
Net profit for the period 144 255 129 718
Adjustments:
- Loss/(profit) on 7 539 (382)
disposal of property,
vehicles and equipment
- Impairment/amortisation 497 7 564
of goodwill
152 291 136 900
Tax on (loss)/profit (2 262) 129
Headline earnings 150 029 137 029
* These balances have been audited with the exception of the effects of the
change in accounting policy relating to the early adoption of the revised AC112.
Abridged consolidated income statement
Restated
audited*
Twelve months
ended
% 30 June
R000 increase 2004
Revenue 19 9 291 031
Operating income before 11 618 431
depreciation
Depreciation of property, (201 104)
vehicles and equipment
Operating income after 8 417 327
depreciation
Investment income 6 070
(Loss)/profit on disposal 3 535
of property, vehicles and
equipment
Impairment/amortisation of (13 559)
goodwill
Net finance costs (49 355)
Profit before taxation 9 364 018
Income taxation expense (103 627)
Profit after taxation 260 391
Share of associate and 550
joint ventures
profits/(losses)
Minority interests (8 850)
Net profit for the period 11 252 091
Weighted average number of 76 001
ordinary shares in issue
(`000s)
Weighted average number of
ordinary shares that would
be issued on the
conversion of all the
dilutive potential 876
ordinary shares (`000s)
Weighted average number of 76 877
shares for purposes of
calculating diluted
earnings per share (`000s)
Earnings per share
- basic (cents) 2 331,7
- basic as previously 332,5
stated (cents)
- fully diluted (cents) 327,9
- fully diluted as 328,7
previously stated (cents)
Headline earnings per
share
- basic (cents) 345,9
- basic as previously 346,7
stated (cents)
- fully diluted (cents) 342,0
- fully diluted as 342,7
previously stated (cents)
Note: earnings per share
is calculated on the
weighted number of shares
in issue during the period
Determination of headline
earnings
Net profit for the period 252 091
Adjustments:
- Loss/(profit) on (3 535)
disposal of property,
vehicles and equipment
- Impairment/amortisation 13 559
of goodwill
262 115
Tax on (loss)/profit 792
Headline earnings 10 262 907
* These balances have been audited with the exception of the effects of the
change in accounting policy relating to the early adoption of the revised AC112.
Abridged consolidated balance sheet
Unaudited Audited*
Restated Restated
31 31 December 30 June
December
R000 Note 2004 2003 2004
Assets
Non-current 1 464 913 1 246 133 1 351 885
assets
Property, 1 240 656 1 020 192 1 143 678
vehicles and
equipment
Goodwill and 54 954 55 229 44 781
intangibles
Investment in 81 085 77 428 71 205
associates and
joint venture
Deferred 8 739 5 910 9 024
taxation asset
Other non- 79 479 87 374 83 197
current assets
1 - - -
Net advances 36 811 159 842 82 632
(after providing
for doubtful
debts)
Less: (36 811) (159 842) (82 632)
Liabilities
related to
advances
Current assets 2 013 903 1 593 273 1 619 941
Inventories 846 652 622 511 731 278
Trade and other 779 682 692 302 669 666
receivables
Cash and bank 387 569 278 460 218 997
balances
Total assets 3 478 816 2 839 406 2 971 826
Equity and
liabilities
Interest of 1 687 758 1 215 394 1 344 180
shareholders of
Unitrans Limited
Share capital 707 020 417 083 423 554
and premium
Treasury stock (8 015) (17 277) (12 734)
Reserves 988 753 815 588 933 360
Minority 42 241 39 408 42 529
interests
Non-current 176 569 163 458 170 734
liabilities
Deferred 153 560 134 163 154 676
taxation
liabilities
Long-term 7 532 6 376 8 117
provisions
Vendors for 3 236 16 023 3 232
businesses
acquired
Interest-bearing 12 241 6 896 4 709
borrowings
Current 1 572 248 1 421 146 1 414 383
liabilities
Trade and other 905 141 758 726 892 077
payables
Non-interest- 112 119 74 027 117 362
bearing
floorplan
creditors
Provisions 2 832 5 264 3 311
Taxation 19 043 28 449 24 612
Vendors for 6 350 6 000 6 000
businesses
acquired
Short-term 526 763 548 680 371 021
borrowings
Total equity and 3 478 816 2 839 406 2 971 826
liabilities
Number of shares 88 760 76 262 76 870
in issue
Net asset value 1 901 1 594 1 749
per ordinary
share (cents)
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.
* These balances have been audited with the exception of the effects of the
change in accounting policy relating to the early adoption of the revised AC112.
Abridged consolidated cash flow statement
Unaudited Audited*
Six Restated year
months ended
ended Six months Restated
ended
R000 31 31 December 30 June
December 2003 2003
2004
Cash generated by 353 134 318 121 618 431
operations
Investment income 1 840 3 662 6 070
Other non-cash movements (873) (1 971) (3 095)
Increase in working (218 048) (109 086) (20 484)
capital
- Inventories (115 374) 85 976 (22 791)
- Trade and other (110 016) (168 054) (145 418)
receivables
- Trade and other 13 064 (45 722) 87 629
payables
- Non-interesting- (5 243) 19 010 62 345
bearing floorplan
creditors
- Provisions (479) (296) (2 249)
Net finance costs and (92 423) (92 864) (157 358)
taxation paid
Cash available from 43 630 117 862 443 564
operations
Dividends paid (81 012) (72 575) (78 521)
Net cash (37 382) 45 287 365 043
(outflow)/inflow from
operating activities
Investment to maintain
operations
- Replacement of (124 689) (63 621) (191 545)
property, vehicles and
equipment
- Proceeds from 17 115 23 427 65 118
disposal of property,
vehicles and equipment
Investment to expand
operations
- Property, vehicles (113 563) (153 702) (289 069)
and equipment
- Net cash (18 140) (8 926) 5 524
(outflow)/inflow arising
from subsidiaries,
associates and joint
venture
Long-term provisions (585) (3 330) (1 589)
Foreign exchange (11 618) (13 785) (11 600)
movements
Decrease in non-current 9 310 12 420 22 593
assets
Net cash utilised by (279 552) (162 230) (35 525)
operations
Increase/(decrease) in 7 532 2 106 (81)
interest-bearing
borrowings
Addition in vendors for 1 384 8 812 (3 979)
businesses acquired
Increase in short-term 155 742 244 838 67 179
borrowings
Net proceeds from issue 283 466 8 354 14 823
of shares
Net cash inflow from 448 124 264 110 77 942
financing activities
Net increase in cash and 168 572 101 880 42 417
bank balance
Cash and bank balances 218 997 176 580 176 580
at the beginning of the
year
Cash and bank balances 387 569 278 460 218 997
at the end of the period
Notes:
1. Capital expenditure commitments amounted to R75,3 million, R7,7 million
related to expansion and R67,6 million to replacement (2003: R116,0 million).
2. There were no material litigation claims or undisclosed liabilities at 31
December 2004.
These balances have been audited with the exception of the effects of the change
in accounting policy relating to the early adoption of the revised AC112.
Abridged statement of changes in equity
Unaudited
Restated Audited*
Six months Six months year ended
ended ended Restated
31 December 31 30 June
December
R000 2004 2003 2004
Opening balance 1 344 180 1 165 511 1 165 511
Net profit for the 144 255 129 718 252 091
period
Dividends paid (77 444) (70 502) (71 175)
Movement in share (5 618) 8 330 7 096
premium arising on the
sale of shares in the
share trust
Vesting of unvested 4 719 5 593 10 136
loans to participants
in the share trust
Net proceeds of issue 289 084 24 7 727
of shares
Unrealised decrease on (11 418) (23 280) (26 857)
translation of net
worth of foreign
subsidiaries
Release on sale of - (192)
property
Statutory reserves in - (157)
subsidiaries
Closing balance 1 687 758 1 215 394 1 344 180
* These balances have been audited with the exception of the effects of the
change in accounting policy relating to the early adoption of the revised AC112.
Notes
1. Compliance with GAAP
The interim results have been compiled in accordance with the South African
Statements of Generally Accepted Accounting Practice applicable to interim
financial reporting.
2. Accounting policies
During the 2004 financial year the group changed its accounting policy with
regard to the consolidation of the share trust. The trust was created for the
purpose of purchasing and holding shares on behalf of employees.
The trust was not previously consolidated into the accounts of Unitrans Limited.
As a result of a revised interpretation of AC132 (Consolidated financial
statements) and AC142 (Special purpose entities) by the JSE Securities Exchange
South Africa GAAP Monitoring Panel the share trust is required to be
consolidated into the financial statements of Unitrans Limited retrospectively.
During the current year, the group early adopted the revised AC112 and
determined the functional currency of its foreign operations. The statement has
been adopted earlier than its effective date due to the fact that it provides
more clarity regarding the appropriate currency that needs to be used in
accounting for the activities of foreign operations.
The group has early adopted AC140 (Business Combinations) and is no longer
amortising its goodwill. The goodwill is subject to an annual impairment test.
AC140 is only applicable prospectively and hence the comparative information has
not been restated.
As a result of the consolidation of the Unitrans Limited share trust and the
early adoption of the revised AC112, the comparative information has been
restated. Refer to note 6 for details of the restatement.
3. Dividends
It is the group's policy to declare an annual dividend.
4. Material subsequent events
No material events have occurred subsequent to the half-year end.
5. Changes in the business
There were no material changes in the composition of the business during the
interim period.
6. Restatement of comparative information
The comparative information presented has been restated for the following:
- the determination of the functional currencies of the foreign operations
- the consolidation of the share trust
- the reclassification of wholesale revenue relating to the Motors division,
from cost of sales to revenue in accordance with AC111 (Revenue).
- the reclassification of the Standard Bank Call Account from cash and bank
balances to external short-term borrowings and interest-bearing floorplan
creditors to external short-term borrowings to comply with current year
classifications.
Effect on income statement
31 31 30 June
December December
2004 2003 2004
Increase in revenue due to 250 495 240 013 473 170
reclassification of wholesale
revenue
Increase in operating income 741 339 606
before depreciation for the
consolidation of the share
trust
Increase/(decrease) in 7 086 (1 101) 1 648
operating income before
depreciation for the
determination of functional
currencies
Increase in depreciation for (555) (393) (890)
the determination of
functional currencies
Decrease in net finance costs 132 492 536
for the consolidation of the
share trust
Taxation (1 689) (606) (1 331)
Effect on net profit for the 5 715 (1 269) 569
period
Dividends on unvested shares 312 755 561
Effect on retained earnings 6 027 (514) 1 130
Effect on balance sheet
Assets
Increase in property, 3 417 4 766 4 981
vehicles and equipment
arising from the
determination of functional
currencies
Increase/(decrease) in other 4 303 (9 729) (6 472)
non-current assets arising
from the consolidation of the
share trust
Increase in cash and bank - 52 955 -
balances for the
reclassification of the
Standard Bank Call Account
Increase in accounts - 85 865
receivable arising from the
consolidation of the share
trust
7 720 48 077 (626)
Equity and liabilities
Decrease in share capital and
premium net of treasury stock
- Impact on opening balance (6 975) (29 560) (29 560)
- Treasury stock (12 734) (22 870) (22 870)
- Share premium 10 953 3 857 3 857
- Retained earnings (4 170) (5 300) (5 300)
- FCTR (1 024) (5 247) (5 247)
- Current year movement (2 967) 19 667 22 585
- Treasury stock 4 719 5 593 10 136
- Share premium (5 618) 8 328 7 096
- Retained earnings 6 027 (514) 1 130
- Foreign currency (8 095) 6 260 4 223
translation reserve ("FCTR")
- Total impact on equity and (9 942) (9 893) (6 975)
reserves at period end
- Treasury stock (8 015) (17 277) (12 734)
- Share premium 5 335 12 185 10 953
- Retained earnings 1 857 (5 814) (4 170)
- FCTR (9 119) 1 013 (1 024)
Increase in deferred tax on 5 037 2 623 3 348
change of functional currency
Increase in accounts payable 11 665 299 714
arising from the
consolidation of the share
trust
Increase in taxation 960 2 093 2 287
Decrease in floorplan - (102 -
creditors due to 044)
reclassification of interest-
bearing floorplan
Increase in short-term - 102 044 -
borrowings for the
reclassification of the
interest-bearing floorplan
Increase in short-term - 52 955 -
borrowings for the
reclassification of the
Standard Bank Call Account
7 720 48 077 (626)
Effect on weighted average number of shares in issue
Number Number Number
of of of
shares shares shares
000 000 000
Weighted average number of 83 272 76 527 76 879
shares as previously stated
Adjustment for unvested (520) (787) (878)
shares in share trust
Restated weighted average 82 752 75 740 76 001
number of shares
7. Group segmental report
Transport and Logistics
Freight Passenger
and
Logistics
December 2004 (R000)
Income statement
Revenue 990 470 240 799
Operating income before depreciation 176 619 52 273
Depreciation (88 107) (20 675)
Operating income after depreciation 88 512 31 598
Balance sheet
Total assets 1 651 613 268 046
Total liabilities (696 129) (89 951)
Net assets 955 484 178 095
Gross capital expenditure 145 131 84 774
December 2003 (Restated) (R'000)
Income statement
Revenue 906 879 185 695
Operating income before depreciation 180 896 42 349
Depreciation (74 635) (18 210)
Operating income after depreciation 106 261 24 139
Balance sheet
Total assets 1 446 486 173 565
Total liabilities (790 958) (78 924)
Net assets 655 528 94 641
Gross capital expenditure 174 546 33 348
7. Group segmental report
Motor and Financial Services
Total Retail Financial Total
December 2004
(000)
Income
statement
Revenue 1 231 269 4 269 154 51 337 4 320 491
Operating 228 892 107 726 16 516 124 242
income before
depreciation
Depreciation (108 782) (7 738) (294) (8 032)
Operating 120 110 99 988 16 222 116 210
income after
depreciation
Balance sheet
Total assets 1 919 659 1 375 805 183 352 1 559 157
Total (786 080) (880 723) (82 014) (962 737)
liabilities
Net assets 1 133 579 495 082 101 338 596 420
Gross capital 229 905 8 347 - 8 347
expenditure
December 2003
(Restated)
(R'000)
Income
statement
Revenue 1 092 574 3 505 191 56 702 3 561 893
Operating 223 245 80 444 14 432 94 876
income before
depreciation
Depreciation (92 845) (5 561) (460) (6 021)
Operating 130 400 74 883 13 972 88 855
income after
depreciation
Balance sheet
Total assets 1 620 051 913 138 306 217 1 219 355
Total (869 882) (490 372) (224 350) (714 722)
liabilities
Net assets 750 169 422 766 81 867 504 633
Gross capital 207 894 9 429 - 9 429
expenditure
7. Group segmental report
Group
December 2004 (R000)
Income statement
Revenue 5 551 760
Operating income before depreciation 353 134
Depreciation (116 814)
Operating income after depreciation 236 320
Balance sheet
Total assets 3 478 816
Total liabilities (1 748 817)
Net assets 1 729 999
Gross capital expenditure 238 252
December 2003 (Restated) (R'000)
Income statement
Revenue 4 654 467
Operating income before depreciation 318 121
Depreciation (98 866)
Operating income after depreciation 219 255
Balance sheet
Total assets 2 839 406
Total liabilities (1 584 604)
Net assets 1 254 802
Gross capital expenditure 217 323
RESULTS
The financial results for the six months ended 31 December 2004 are as follows:
Growth in revenue of 19% to R5,6 billion (2003: R4,7 billion) resulted in the
group reflecting an increase in headline earnings of 10% to R150 million (2003:
R137 million). Net profit for the period rose by 11% to R144 million (2003: R130
million).
After taking into account the increased number of shares in issue from 4 October
2004, headline earnings per share increased from 180,9 cents per share to 181,3
cents per share and basic earnings per share increased from 171,3 cents to 174,3
cents.
Borrowings
Whilst awaiting Competition Tribunal approval for the acquisition by Steinhoff
International Holdings Limited ("Steinhoff") of the Unitrans' shares held by
Murray & Roberts Holdings Limited ("Murray & Roberts"), the cash of R290 million
generated from the additional Unitrans' shares issued for purposes of the BEE
Transaction was used to repay debt. This has had a positive impact on the level
of the group's borrowings and finance costs paid . Short-term interest-bearing
borrowings, net of cash, fell to R139 million (2003: R270 million) with net
finance costs for the period reducing to R22 million (2003: R24 million). The
group's interest-bearing debt to equity ratio improved to 10% (2003: 25%).
The group's net asset value per share increased by 19% to 1 901 cents (2003: 1
594 cents) with tangible net asset value increasing to 1 840 cents (2003: 1 521
cents).
Investment in fixed assets
The group has taken advantage of the strong rand, and has invested a further
R125 million (2003: R64 million) in the replacement of vehicles and equipment.
The group also invested R114 million (2003: R154 million ) in expansion.
Working capital
Year-on-year, working capital has increased by R218 million. This increase is
largely due to the buoyant trading conditions experienced by the Motor Retail
division and to increased inventory holdings by the division.
SEGMENTAL ANALYSIS
Freight and Logistics
The Freight and Logistic division's revenue grew by 9% to R990 million (2003:
R907 million) and operating income after depreciation fell by 17% to R89 million
(2003: R106 million).
All of the freight and logistics operations, with the exception of those
detailed below, performed in line with expectations and are in a sound position.
The disappointing results are attributable to the following:
* The Forestry division made a loss during the current year, which represented a
R15 million turnaround year-on-year. This loss was attributable to a number of
factors including employee action, inclement weather, low escalations and
difficult trading and operating conditions.
* No contribution from Unitrans Express Deliveries in the six-month period
compared to a contribution of R4 million in the previous year.
Remedial action to curtail losses in the Forestry division has been taken.
Management attention will be focused on a review of non-profitable contracts
within Forestry together with a restructuring of the operations to ensure
optimum cost efficiencies. Notwithstanding the remedial action taken to date,
management will be critically evaluating the group's future involvement in
certain areas of the Forestry operations.
Gross capital investment in Freight and Logistics was R145 million (2003: R175
million), R47 million of which was spent on funding expansion, with the balance
on replacement.
Passenger
The Passenger division's revenue grew by 30% to R241 million (2003: R186
million) and operating income after depreciation increased by 31% to R32 million
(2003: R24 million). This excellent performance must be seen against the intense
competition in the intercity operations and the reduced tourism numbers
resulting from the strengthening rand. The Competition Authorities granted their
approval to the acquisition of the NTI commuter service contract in October
2004. The division commenced running this contract, which involves 210 buses in
the Rustenburg area, from that date. The new operations are performing above
expectations.
Capital investment for the division was R85 million (2003: R33 million) of which
R61 million was used to fund expansion with the balance spent on replacement.
Motor Retail division
The Motor Retail division's revenue grew by 22% to R4,3 billion (2003: R3,5
billion) and operating income after depreciation increased by 34% to R100
million (2003: R75 million).
Reduced interest rates, the strengthening rand and the changing income
distribution in the country have facilitated higher volumes in the new car
market. The Motor division has managed to retain its existing share of a
substantially higher dealership market. It increased its new vehicle volumes by
27% year-on-year and pre-owned vehicle volumes by 5%. The increase in volumes
and price per vehicle in the pre-owned category is particularly pleasing, given
the decline in the value of used vehicles. The parts and service operations
continued to perform well.
Insurance and Financial Services
The Insurance operations had an excellent half year, growing revenue by 20%.
Overall revenue in this division has reduced as a result of the contribution
from Ufin coming to an end. Notwithstanding the reduced contribution from Ufin,
the operating income from this division has increased to R16 million (2003: R14
million).
Hertz
The contribution from the Hertz Rent a Car operation, in which the division has
a 40% shareholding, represents a considerable improvement year-on-year. Hertz
has recorded a profit for the six months. Continued focus on cost cutting,
improved fleet utilisation and yield management has clearly had a significant
impact on the operation.
SHAREHOLDING STRUCTURE
Change in control
The introduction of Steinhoff as the new controlling shareholder in Unitrans is
seen as a positive move and has been welcomed by Unitrans' management. The
relationship between Unitrans and Steinhoff is now free to be effectively
developed for the benefit of all stakeholders.
As previously announced, Steinhoff acquired the 34 216 680 Unitrans' shares held
by Murray & Roberts and this acquisition received the approval of the
Competition Tribunal on 12 January 2005. As Steinhoff now holds more than 35% of
the issued shares in Unitrans, it is obliged to make an offer to acquire shares
from the minority shareholders for an equivalent offer consideration of R26,32
per share ("the Mandatory Offer").
A circular to shareholders, detailing the terms and conditions of the Mandatory
Offer, will be sent to Unitrans' shareholders, other than Steinhoff, on or about
Friday, 25 February 2005.
DETAILS OF THE BEE TRANSACTION
The 11 600 000 shares allotted and issued for cash on 4 October 2004 were issued
to Clidet Number 518 (Proprietary) Limited ("Clidet") at R25,04 per share ("the
BEE Transaction").
As previously advised to shareholders, Clidet is owned as to:
* 34,9% by Arch Equity Limited (a black controlled company focusing on private
equity investments);
* 34,9% by Mvelaphanda Capital (Proprietary) Limited (a wholly owned subsidiary
of Mvelaphanda Holdings (Proprietary) Limited, a widely recognised BEE entity);
and
* 30,2% by an employee trust for the benefit of Unitrans' employees, at least
80% of whom are previously disadvantaged individuals.
The BEE Transaction demonstrates Unitrans' commitment to BEE, which it believes
is essential for the development of its people, its businesses and the South
African economy.
DIRECTORATE
Mr RH Naisby elected to take early retirement from the company with effect from
1 December 2004 and he resigned as a director of the company from that date. The
Board places on record its gratitude for Mr Naisby's valued input into the
affairs of the group and the best wishes of the Board accompany him on his
retirement.
Pursuant to the implementation of the Steinhoff Acquisition, Messrs BC Bruce and
RW Rees, both of whom were nominated by Murray & Roberts, resigned as directors
of the company on 20 January 2005.
New appointments to the Board will be made in due course.
CORPORATE ACTIVITY
The group's policy of entrenching and building on organic growth whilst
investigating appropriate potential acquisitions and investment opportunities
remains unchanged.
The following initiatives were put in place during the six-month period and,
together with the BEE transaction, form part of the group's BEE strategy:
* Work on the NTI contract operated by Bojanala for commuter bus transport in
the Rustenburg area commenced in October 2004;
* Nomakanjani Logistics Company (Proprietary) Limited, in which Unitrans Freight
(Proprietary) Limited has a 30% shareholding, commenced the provision of
transport services under contract to the coal mining industry in South Africa on
1 July 2004. The other shareholders in this venture are Imbani Holdings,
Bakgotsi Holdings and Anglo Zimele (Anglo American PLC's empowerment and
business development facilitator).
SOCIAL RESPONSIBILITY
The group's commitment to conducting its businesses as a responsible corporate
citizen remains unchanged.
The pilot programme introduced by the group as part of its initiative to combat
AIDS has been successful in attracting a high level of response to the testing
facilities offered although the accessing of treatment was at a lower level.
Experience gained in the group's pilot AIDS programme will be utilised to
facilitate the implementation of the recently announced comprehensive industry
programme, which seeks to make treatment available across the board.
CORPORATE GOVERNANCE
The group has adopted an ongoing approach to corporate governance and
continually seeks to refine its procedures and policies. The group remains
compliant in all material respects with the recommendations of the King Report
on Corporate Governance for South Africa 2002.
PROSPECTS
The Freight and Logistics divisions, with the exception of Forestry, are
forecast to produce results for the balance of the year that are in line with
expectations. Forestry is expected to break even over this period, whilst
repositioning itself for the future.
The robust performance of the Passenger division should continue in the second
half notwithstanding the level of competition on intercity operations. There are
indications of an increase in tourism numbers from the more traditional markets.
Based on the current interest rate forecasts and forthcoming new product
launches, the outlook for the balance of the year for the Motor and Financial
Services division remains positive.
The Board remains of the view that the group will continue to deliver real
growth in headline earnings for the balance of the year.
For and on behalf of the Board
DC Brink KJ Grove
Directors: DC Brink*, PJ Dieperink, KJ Grove, MJ Jooste*, SM Keys, D Konar*, PK
Quarmby*, DM van der Merwe*
non-executive
Secretary: JV Radnay
Registered office: 263 Oxford Road, Illovo, Johannesburg 2196, Telephone: 011
912 7000, Telefax: 011 442 7802/20
Transfer secretaries: Computershare Investor Services 2004 (Pty) Limited, Ground
Floor, 70 Marshall Street, Johannesburg 2001
Telephone: 011 370 7700, Telefax: 011 688 5200
Sponsor
PSG Capital
Logos
Unitrans Freight
Unitrans Fuel and Chemical
Unitrans Sugar and Agriculture
www.unitransfreight.co.za
African Express
Pivot Transport
Unitrans Supply Chain
Roadway Logistics
www.roadway.co.za
Mega Bus
Mega Coach
Greyhound
Citiliner
Bojanala Bus
www.megacoach.co.za
www.greyhound.co.za
www.magicbus.co.za
Unitrans Motors
Toyota
Hino
Lexus
Opel
Isuzu
Suzuki
Chev
VW
Audi
Alfa Romeo
Nissan
Fiat
Mitsubishi Motors
Mercedes
BMW
Mini
Man
Contract Lease
Unitrans Insurance Limited
Hertz
Unitrans Motor Dealers
Algoa Toyota Group (4)*
Avondale Toyota
Buffalo Toyota Group (2)*
East Rand Toyota
Killarney Toyota Group (2)*
Limpopo Toyota Group (2)*
Market Toyota Group (5)*
Monument Toyota Group (3)*
Oranje Toyota Group (8)*
Pat Hinde Toyota Group (4)*
Rivonia Toyota
IC Group (3)*
United Motors Group (2)*
United Truck Centre (MAN)
Williams Hunt GM Group (12)*
Port Elizabeth Chevrolet
Autobahn BMW
Northcliff Auto
Audi Centre East Rand Mall
Benoni Citi VW
Kingspark VW Durban
Klerksdorp Volkswagen & Audi
Kroonstad Volkswagen
McDuling Motors
Strijdom Park VW
The Glen Volkswagen & Audi
* Denotes number of dealerships
Date: 22/02/2005 05:01:23 PM Produced by the JSE SENS Department
