Uniserv`s income up 58%

United Service Technologies (Uniserv), whose only interest is a 30.3% stake in Nasdaq-listed supply chain solutions group UTi Worldwide, has reported a 58% increase in net attributable income for the year to end-January.

UTi is a broadly based, information-focused supply chain management business providing freight forwarding, customs brokerage, order management and postponement warehousing services.

It also provides an array of proprietary information systems that enable Internet access and Web-based ordering, air and ocean freight tracking and tracing and customs clearing services.

UTi in December issued an additional 4.6 million shares for cash at $23 a share, raising about $106 million before underwriting commissions and costs.

The issue had the effect of diluting Uniserv`s holding from about 36% to 30.3% although its share of the shareholders` equity has risen by 13% to R839.4 million.

The UTi share is equivalent to about 5.89 Uniserv shares.

Uniserv chairman Matthys Wessels says strides were made towards UTi`s long-term objective of global integrated logistics with the acquisition during the year of two companies, Standard and Grupo, which have strengthened the group`s range of services.

However, he says UTi will face continued global business uncertainties, especially with the geopolitical issues in Middle East, although the group has limited exposure in the region.

"Weaker volumes in trade demand, particularly in the Asian imports to the US, have recently been noted. It is expected that these factors will affect UTi`s first fiscal quarter, which remains the seasonally weakest of the year."

He says UTi is still optimistic about its prospects for the full year as it continues to build reserves, drives operating improvements, realises a full-year contribution from Standard and attracts global customers.

The Uniserv share was untraded at 2 350c on the JSE by midmorning today.