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ASX ANNOUNCEMENT

VIEWS: 6 PAGES: 5

									Australian Stock Exchange                                                                UXC Limited
Company Announcements Platform                                                        ABN 65 067 682 928

5 March 2003

                             MARKET ANNOUNCEMENT
              UXC Announces Partial Half Year Result and Interim Dividend

HIGHLIGHTS:

•   The reverse takeover of DVT Holdings Limited by Utility Services Corporation to form UXC
    Limited was completed in September 2002
•   For 13 of the group’s 14 operating business units, results are for less than four months due to the
    timing of completion of the reverse takeover
•   Profit before tax of $3.2 million
•   Interim dividend of 2 cents per share fully franked, payable in April
•   Revenue growth of 110% from the prior year when measured on a comparable basis
•   Cash and investments balance of $31 million
•   Consolidated franking credits available of $15.5 million (on a tax-paid basis or $36.2 million on a
    grossed up basis)
•   Completion of the acquisition of e-BI Solutions, Xapt Australia and Telsyte
•   Acquisition of Planpower since December 31.

DIRECTORS’ REPORT FOR THE HALF-YEAR TO 31 DECEMBER 2002

RESULTS: UXC earned a pre-tax profit of $3.2 million for the December half-year and will pay an
interim dividend of 2 cents per share fully franked. Revenue totaled $47.9 million.

Results for the previous corresponding period are not comparable for the following reasons:

•   The previous corresponding period includes the results of now discontinued operations,
    specifically Davnet Telecommunications Pty Limited, Davnet Inc, and Davnet Canada Inc.
•   It also excludes the results of now consolidated operations, specifically Utility Services
    Corporation and its subsidiaries.
•   The current period excludes more than two months of consolidated operating results for Utility
    Services Corporation, as these results were contributed before completion of the reverse takeover.

The timing of the reverse takeover of DVT Holdings Limited by Utility Services Corporation during
September 2002 means the December half results exclude an earnings contribution from 13 of the
Group’s 14 operating business units for more than two months. Inclusion of that contribution would
have had a significant favorable impact on the reported result.

With the completion of the merger, management has focused on exploiting synergies between the
group’s business units, achieving organic growth objectives in a difficult market, and continued
acquisition activity. During the period, UXC acquired e-BI Solutions, which provides business
intelligence tools, consulting and training services. UXC business unit Eclipse Computing completed
the acquisition of Xapt Australia, a reseller of the widely acclaimed ERP solution, Microsoft Navision
Axapta. UXC business unit Gibson Quai also acquired telecommunications research firm Telsyte. In
January, UXC announced the acquisition of Planpower, a professional services organisation, which
specialises in project management, business solutions consulting, organisational change and learning
& development.
Australian Stock Exchange                                                                UXC Limited
Company Announcements Platform                                                        ABN 65 067 682 928

5 March 2003

The Company’s financial position remains robust, with nearly $22 million of cash, $9 million of
investments, and no debt. In light of this strong financial position and the satisfactory level of
profitability, the Directors have declared a dividend of 2 cents per share fully franked, payable on 30
April 2003 to shareholders of record at 15 April 2003.

ANALYSIS AND FUTURE PROSPECTS: UXC provides its services through three divisions:

The Utility & Infrastructure Services Group is engaged in utility asset and data management,
including asset inspection, management and maintenance services; the provision of utility meter
installation and reading services; related data management and GIS services; industrial design; and
mobile telephony. There are four business units in this group, Utility Asset Management, Skilltech
Consulting Services, neopurple and U-Tel Communications.

On a comparable basis, the Utility & Infrastructure Services Group has experienced sound growth in
revenues and earnings over the previous corresponding period. This has been delivered through the
development of new domestic markets and by winning new customers. Future growth is targeted
through selective acquisitions (several opportunities are being considered), continuing development of
value-adding data management services to complement the infrastructure data collection services
currently provided, continued growth in GIS services, and development of export markets for certain
asset maintenance services.

The Business Solutions Group provides consulting, implementation and integration, applications and
technology infrastructure services. Offerings include knowledge management; project and change
management; CRM, ERP, business intelligence, financial and business information applications;
technology architecture; and data storage and management. There are 10 business units in this group,
Planpower (acquired 1 January 2003), Gibson Quai, Opticon Australia, Cantec Australasia, and e-BI
Solutions (all providing various consulting services); QSP Asia Pacific and Eclipse Computing
Australia (both providing financial and business information applications); and Integ
Communications, XSI Data Solutions, and Corporate Network Solutions (all involved in the provision
of technology infrastructure services).

The Business Solutions Group has delivered a very pleasing result, achieving a remarkable increase in
revenues and earnings from the previous corresponding period despite the exclusion of more than two
months of contribution from 8 of the 9 business units operating in the current period. This increase
can be attributed to:

•   The finalization of acquisitions and resultant inclusion of businesses between the corresponding
    reporting periods (Cantec, Eclipse, Corporate Network Solutions, and e-BI Solutions);
•   Achieving control of the remaining 50% interest in two joint ventures which are performing well
    above budget (Integ Communications and QSP Asia Pacific); and
•   Very satisfying organic growth in a difficult market (XSI Data Solutions, Opticon Australia, and
    Gibson Quai).

Future growth will come from further acquisitions (including a contribution from Planpower, the
acquisition of which was completed effective 1 January 2003), extraction of synergies between the
various business units and further organic growth within business units as their market power, brand
recognition, and quality of service progress.
Australian Stock Exchange                                                                 UXC Limited
Company Announcements Platform                                                         ABN 65 067 682 928

5 March 2003

The Intellectual Property Ventures Group identifies, develops and commercialises intellectual
property to realize associated capital gains. The one operating business unit in this group, ILID, is
involved in the commercialization of indoor light interactive display technology for shelf labeling
solutions in retail industry. This group also has some four equity/convertible note investments in
companies developing new technologies.

The IP Ventures Group experienced a period of transition; the ILID business unit progressed from a
research and development investment trust to an operating business generating revenues from
commercializing its promising technology. The restructuring of the ILID venture has allowed UXC to
control marketing and distribution of the product. Interest has been shown by a variety of retail
businesses both in Australia and overseas. Additionally, many of this unit’s investments had been
contributing interest income. Prior to and during the current period, many of those investments were
either realized or exited, or converted into equity, discontinuing an associated interest income stream.

The UXC group is now generating revenue at an annual rate of some $160 million. The Directors
have established an internal objective of achieving a 10% EBITDA on this turnover, before corporate
costs. Management has a proven record in controlling overheads, and is confident this will continue.

The Directors are confident of reporting a significant improvement in the results for the second half
for the following reasons:

•   The consolidation and reporting of a full six month period for the whole group in the second half;
•   New contributions from Planpower (acquired effective 1 January 2003) and further acquisitions
    under current investigation; and
•   Continued forecast organic growth.

SHARE BUYBACK: UXC has bought back more than 6 million shares on market since the buyback
program began on 17 September 2002, at an average of $0.5864 per share. This capital management
initiative continues a program that Utility Services Corporation had in place, and is considered
appropriate given the company’s strong cash position and the Directors’ view that the underlying
value of the shares exceeds buyback prices.

When combined with dividends paid and declared this means that over $9.6 million will have been
returned to shareholders since the formation of UXC Limited in September 2002.

DIRECTORS: The Directors in office, and their tenure of service, during the half-year and up to the
date of this report, are as follows:

•   Mr. Geoff Lord (Executive Chairman) – From 13 September 2002 and continuing at the date of
    this report.
•   Mr. Jean-Marie Simart (Former Chairman and Non-Executive Director) – During the whole of
    the half-year and continuing at the date of this report.
•   Mr. Juerg Walker (Non-Executive Director) – During the whole of the half-year and continuing
    at the date of this report.
•   Mr. Geoff Cosgriff (Non-Executive Director) – From 13 September 2002 and continuing at the
    date of this report.
•   Mr. Kingsley Culley (Non-Executive Director) – From 13 September 2002 and continuing at the
    date of this report.
Australian Stock Exchange                                                                  UXC Limited
Company Announcements Platform                                                          ABN 65 067 682 928

5 March 2003

•   Mr. Fred Swaab (Non-Executive Director) – From 13 September 2002 and continuing at the date
    of this report.
•   Mr. Ron Zammit (Non-Executive Director) – From 13 September 2002 and continuing at the
    date of this report.
•   Mr. Edward Rule (Non-Executive Director) – From the beginning of the half-year until 13
    September 2002.
•   Mr. Mark Hubbard (Executive Director) – From the beginning of the half-year until 13
    September 2002.

ROUNDING: The Company is of a kind referred to in Class Order 98/0100 issued by the Australian
Securities & Investments Commission, relating to the “rounding off” of amounts in the Directors’
report and financial report. Amounts in the Directors’ report and financial report have been rounded
off in accordance with that class order to the nearest thousand dollars.

CONCLUSION: I welcome all new shareholders and staff to UXC Limited, and thank all
shareholders and employees for their support and contribution during a period of complex change.
The Board and management are committed to capitalizing on the achievements of the past half-year
and delivering further earnings growth and continued superior returns to its owners.

This report is made in accordance with a resolution of the Directors.




Geoff Lord
Executive Chairman
UXC Limited
Melbourne, 5 March 2003


For more information please contact:

Mr Geoff Lord                        Mr Mark Hubbard                    Toll Free Shareholder
Executive Chairman                   Finance Director                    Information Line:
UXC Limited                          UXC Limited                        1800 092 092
Tel: (03) 9941 3100                  Tel: (03) 9224 5777                www.uxc.com.au;
                                                                                                   UXC Limited
                                                                                                ABN 65 067 682 928




Directors Declaration

The directors declare that:

    (a)      The attached financial statements and notes thereto comply with Accounting Standards;

    (b)      The attached financial statements and notes thereto give a true and fair view of the financial
             position and performance of the consolidated entity;

    (c)      In the directors’ opinion, the attached financial statements and notes thereto are in accordance with
             the Corporations Act 2001; and

    (d)      In the directors’ opinion, there are reasonable grounds to believe that the company will be able to
             pay its debts as and when they become due and payable.

Signed in accordance with a resolution of the directors made pursuant to s.303(5) of the Corporations Act 2001.

On behalf of the Directors




Director
MELBOURNE, 5 March 2003

								
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