| Wed 21 Feb 2007, 15:25 | | UTR - Unitrans Limited - Media Release |
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UTR - Unitrans Limited - Media Release
UNITRANS LIMITED
Registration number 1967/003403/06
JSE Share Code: UTR
ISIN: ZAE000007670
("Unitrans")
Unitrans Unaudited Results to December 2006 21 February 2007
Unitrans Limited, the transport, distribution and logistics group, has
announced its results for the six months ended 31 December 2006. Revenue
grew by 17% to R8 billion. Operating profit was up by 26% to R362 million.
Headline earnings per share grew by 24% to 263 cents, and earnings per share
increased by 25% to 263 cents.
The group`s operating margin increased from 4,2% to 4,5%.
"Our various diversified operations have performed well, highlighting the
group`s ability to retain and attract customers, ensuring sustainable growth
and reaffirming our commitment to long-term partnerships with our
customers," stated Jo Grove, Unitrans chief executive.
The results produced by the Motor and Financial Services division in its
Motor Retail operations have been fuelled by the ongoing demand for new
vehicles, and supported to some extent by the growing market for pre-owned
vehicles. The performance from the service and parts operations of the
division`s 72 retail outlets benefited from the record levels of new vehicle
sales over the past three years. Results from Hertz exceeded the budget for
the period. This was as a result of the prevailing buoyant domestic
economy, combined with the introduction of improved efficiencies within the
company. Overall revenue growth of the Motor division grew by 17% to R6,1
billion.
The overall operating margin in the Motor and Financial Services division
increased from 3,0% to 3,3%.
Revenue in the Unitrans Supply Chain Solutions division ("USCS") grew by 17%
to R1,4 billion. "The strategy of this division to build extensive long-
term partnerships with new and existing customers is paying dividends," said
Grove. "The former traditional freight offering of the division has been
expanded by the integration of supply chain re-engineering specialist
skills, which allows us to offer customers improved service levels,
optimised supply chain costs and enhanced competitive advantage." During
the current period, the division has secured or renewed several significant
contracts. The combined operating margin of 8,4% was up on the prior six-
month period.
Revenue from the Passenger division increased by 13% to R335 million. In
the main, the division`s operations performed in line with expectations. An
improvement was reflected in the performance of the division`s intercity
operations in the second quarter, partly attributable to a reduction in the
fuel price.
"We believe that our current strategies, supported by the present economic
climate, will continue to sustain growth within our operations," continued
Grove, "and we will continue to explore market-related opportunities to grow
our business.
The Motor division`s diverse activities will enable it to withstand any
shift in interest rates or product price increases. The division has also
positioned itself well to take advantage of any anticipated move within the
consumer market towards pre-owned vehicle sales. Further opportunities for
organic and acquisitive growth are being actively pursued by USCS, which
would lead to expansion of its current contract base. The Passenger
division was recently awarded the long-term contract for the commuter feeder
and distribution service for the Gautrain Rapid Link, scheduled for 2010,
and will be closely involved with the design of the feeder system. In
addition, this division`s solid track record in commuter transport positions
it well to secure further contracts.
The group continues to receive recognition for operational excellence and
innovation. Awards have included the "Best Transporter of the Year" in the
prestigious Focus on Excellence awards, and six "Dealer of the Year" awards
received from various motor manufacturers during 2006.
An offer has been received from Steinhoff regarding a proposed transaction.
The independent directors of Unitrans intend recommending this offer to the
minority shareholders. An announcement containing details of the offer will
be released shortly. In the interim, shareholders are referred to the
cautionary announcement by Unitrans dated 24 November 2006, which was
renewed on 4 January 2007.
- ends -
Issued by: Unitrans
Tel: 011 912 7000
Fax: 011 442 7802
For further information please contact:
Jo Grove, Chief Executive
Unitrans Limited Tel: (011) 912 7000
Cell: 083 452 4777
email: jo.grove@unitrans.co.za
Date: 21/02/2007 15:25:00 Produced by the JSE SENS Department.
