Rand strength has dented United Service Technologies` (Uniserv`s) interim earnings, although the value of the group`s only interest - its investment in US-based UTi Worldwide - has increased.
<B>Salient figures</B>
United Service Technologies results for the six months to 31 July 2003.
Figures for the year-earlier period in parentheses:
Operating profit: -R1.52m (R-1.82m)
Income attributable to associated company: R62.16m (R68.8m)
Tax attributable to associated company: R16.06m (R20.48m)
Net income: R44.61m (R46.57m)
EPS and HEPS: 81.7c (85.3c)
Net cash inflow from operating activities: R5.04m (-R3.4m)
Current assets: R13.57m (R15.7m)
Current liabilities: R6.63m (R5.6m)
Uniserv has a 30.3% stake in UTi, a Nasdaq-listed global supply chain solutions provider.
Uniserv`s headline earnings per share fell by 4.2% from 85.3c to 81.7c, which chairman Tiger Wessels says is mainly because of the strengthening of the rand in the six months to 31 July. He says this was offset by UTi`s strong dollar earnings growth.
"Despite the strengthening of the rand, the value of our investment in UTi increased to R2.41 billion from R1.52 billion in the prior year," he says.
"UTi`s global network achieved dollar gross and net revenue gains in all geographic regions over the prior-year period. The Americas benefited from the Standard acquisition, contributing $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 dollars increasing by 25%. Operating profit for this region increased by 48%."
Wessels says 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 dispute. That benefit is not expected in the second half of this year.
"The company`s confidence in its market position is demonstrated by an ongoing investment in skills and talent of its global sales and customer management organisation."
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