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Unitrans - Press Release: Interim Results For Year Ended 30 June 2006
UNITRANS LIMITED
Registration number 1967/003403/06
JSE Share Code: UTR
ISIN: ZAE000007670
("Unitrans")
Press Release - Unitrans Ltd - Interim results for year ended 30 June 2006
MEDIA RELEASE
UNITRANS DELIVERS ANOTHER STRONG SET OF RESULTS
23 August 2006
Buoyed by a strong domestic economy, Unitrans delivered an excellent set of
results for the June 2006 financial year. Revenue increased by 20% to
R13,4 billion. Headline earnings at R350 million increased by 22% , with
headline earnings per share increasing by 21%. On the back of this,
Unitrans increased its capital distribution to shareholders by 23% to 135
cents per share.
"Not only did we meet our financial targets, we also delivered on our
operational objectives," explained Jo Grove, Chief Executive, Unitrans
Limited. "Our first international acquisition was concluded and will be
leveraged to grow the offshore component of our logistics businesses. We
also repositioned our freight and logistics businesses as a supply chain
re-engineering service provider to facilitate strategic partnerships with
clients. In addition, we increased our shareholding in Hertz Rent a Car to
100%, enabling us to make the required changes to grow this business
profitably."
Unitrans Supply Chain Solutions (USCS) performed well during the year,
concluding several new contracts in the supply chain arena. Corrective
actions taken in the prior year have paid off. USCS showed strong growth
in operating income after depreciation to R192 million, translating into
operating margins of 8% compared to 6% in 2005. The increase in revenue
was partly organic, as well as a result of increased cost recoveries in
terms of escalation formulas and partly as a result of acquisitions.
The 15% revenue growth produced by Unitrans" luxury coach business and the
commuter and contractual bus businesses was in line with expectations.
However, competitive activity and increased fuel costs negatively impacted
the intercity coach services, contributing to lower operating margins for
the division of 9% compared to 12% in the year ended 30 June 2005.
High consumer demand continued to bolster the demand for new vehicles,
which contributed to record breaking new vehicle sales. The Motor Retail
and Rental division, through Motor Retail and rental operations, achieved
overall revenue growth of 19% to R10,2 billion. This was supported by
increased parts and service sales from the division"s 72 dealerships.
Insurance, leasing and other financing activities benefited from the strong
demand for new vehicles, with a 20% increase in revenue and sound
improvement in operating margins. These strong performances resulted in the
Motor and Financial Services division producing growth of 30% in operating
income after depreciation. Operating margins increased to 3,2% compared to
2,9% in the prior year.
The board declared a capital distribution of 135c per share, representing
an increase of 23% on 2005.
Grove concluded that "while participating in the positive demand resulting
from the current economic climate in South Africa, we concluded several
initiatives during 2006 to ensure that our positioning is sustainable. We
believe that we are well placed to deliver growth in earnings in the year
ahead. The Motor division should continue to deliver a solid return as the
demand for vehicles is expected to remain robust in the medium term. USCS
is well positioned to extend our supply chain reach into new sectors and
new regions where we already have expertise. Our Passenger division will
continue to pursue contracts in the commuter transport arena and we will
leverage our two acquisitions in the UK to build the international
components of our business."
For further information please contact:
Jo Grove Tel: (011) 912 7000
Cell: 083 452 4777
Unitrans Limited email: jo.grove@unitrans.co.za
Philip Dieperink Tel: (011) 912 7000
Cell: 082 555 6976
Unitrans Limited email:philip.dieperink@unitrans.co.za
DISTRIBUTED ON BEHALF OF UNITRANS LIMITED BY FCB JONSSONS
Date: 24/08/2006 09:44:04 AM Produced by the JSE SENS Department
