A strong performance by Nasdaq-listed UTi helped South African shareholder United Service Technologies (Uniserv) improve its own net income by 26.2% in the six months to July.
JSE-listed Uniserv`s only investment is its 30.3% stake in UTi, a global supply chain solutions provider.
Income attributable to UTi amounted to R81.8 million, up from the R62.16 million for the same period a year earlier. This was calculated on an average exchange rate of R6.561 to the dollar, against a rate of R7.854 to the dollar a year earlier.
Despite rand strength, headline earnings per share increased by 26.2% to 103.1c from 81.7c previously.
"This increase was caused principally by UTi`s strong US dollar earnings growth during the period," says Uniserv chairman Tiger Wessels. "Notwithstanding this currency appreciation, the value of our investment in UTi increased to R2 995 million from R2 414 million in the prior year."
Net income rose from R44.61 million to R56.28 million.
UTi reported its results for the second quarter to 31 July earlier this week, showing an increase in net income to $16.21 million in the second quarter to 31 July.
This compares with $11.42 million for the same quarter the previous year and brings the net income for the six months to July to $29.01 million, up from $19.39 million for the previous interim period.
UTi increased total quarterly gross revenues from $362.03 million to $540.36 million, and interim gross revenues from $688.8 million to $1.03 billion.
Net revenues for the quarter rose from $144.86 million to $186.5 million, with interim net revenues increasing from $276.28 million to $356.49 million. Basic earnings per ordinary share rose from $0.38 to $0.53 for the quarter and from $0.64 to $0.95 for the six-month period.
UTi CEO Roger MacFarlane says the group`s focus on improved operating margins is evident as each of its geographic regions made solid contributions to growth in operating income for the quarter.
"Africa, helped in part by the acquisition of International Healthcare Distributors during the second quarter of fiscal 2005, recorded a 46% gain in operating income over the prior-year comparable period on a 77% increase in net revenues."
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