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WNH
WNH
WNH - Winhold Limited - Reviewed abridged consolidated results of the group for
the six months ended 31 March 2007
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share code: WNH) (ISIN number: ZAE000033916)
Statement of results
The board announces the reviewed abridged consolidated results of the group for
the six months ended 31 March 2007
Consolidated income statement
Year ended Six months ended
30 September 31 March
2006 `2007 `2006
R`000 R`000 R`000
873,225 Revenue 443,454 412,443
37,756 Operating profit 13,767 16,391
14,556 Investment income 11,216 2,596
3,116 Profit on sale of investment - -
property
(1,636) Restructuring costs - -
(19,812) Net finance costs (14,991) (6,476)
34,080 Profit before taxation 9,992 12,551
(7,877) Taxation 64 (4,115)
26,203 Net profit after taxation 10,056 8,396
419 Share of after tax profit of 254 170
associate company
(2,257) Attributable to outside shareholders (321) (117)
24,365 Ordinary shareholders profit 9,989 8,449
24,365 Earnings 9,989 8,449
23,161 Headline earnings 9,940 8,509
47,702 EBITDA 20,429 21,832
19,4 Earnings per ordinary share (cents) 8,0 6,7
18,5 Headline earnings per ordinary share 7,9 6,7
(cents)
Weighted average ordinary shares in 125,506 126,215
125,506 issue (000`s) on which the earnings
per share has been calculated
126,215 Ordinary shares in issue (000`s) 126,215 126,215
7,0 Dividend per ordinary share - -
Reconciliation of headline earnings
24,365 Ordinary shareholders profit 9,989 8,449
(3,116) Net profit on disposal of investment - -
property
118 Net (profit)/loss on disposal of (69) 62
fixed assets
158 Taxation effect on disposals 20 (2)
1,636 Restructuring costs - -
23,161 Headline earnings for the period 9,940 8,509
Reconciliation of Earnings before
interest, tax, depreciation and
amortisation ("EBITDA")
37,756 Profit from operations 13,767 16,391
9,946 Depreciation & ammortisation of 6,662 4,991
intangibles
47,702 EBITDA 20,429 21,382
Summarised consolidated balance sheet
Year ended Six months ended
30 September 31 March
2006
R`000
`2007 `2006
R`000 R`000
ASSETS
94,755 Property plant and equipment 105,806 97,361
1,493 Trade marks and patents 1,403 798
- Other non current assets - 378
160,788 Investments 160,788 160,788
729 Investments in associates 773 480
26,541 Goodwill 26,541 26,541
1,449 Deferred taxation 1,449 1,719
Current assets
124,792 - inventory 147,215 124,537
157,615 - receivables 171,225 142,675
19,408 - bank and cash 12,396 15,612
587,570 Total assets 627,596 570,889
EQUITY AND LIABILITIES
122,793 Ordinary share capital and premium 122,793 123,627
76,240 Retained earnings 77,394 58,259
199,033 Shareholders` interest 200,187 181,886
2,287 Outside shareholders` interest 2,608 148
201,320 Total Equity 202,795 182,034
Non-current liabilities
187,736 - interest bearing 188,875 193,816
904 - interest free 976 1,340
3,399 - deferred taxation 3,399 2,152
Current liabilities
20,680 - bank overdraft 52,360 40,835
12,971 - short term borrowings 16,111 11,468
Current liabilities - interest free
156,182 - payables 159,859 136,985
4,378 - taxation 3,221 2,259
587,570 Total equity and liabilities 627,596 570,889
Supplementary information
20,116 Capital commitments 659 7,076
10,333 Capital expenditure 17,900 3,905
9,946 Depreciation 6,662 4,991
221,387 Interest bearing borrowings 257,346 246,119
19,323 Interest earning deposits 12,251 15,503
158.6 Net asset value per ordinary share 159.5 144.1
(cents)
136.2 Net tangible asset value per 137.2 122.4
ordinary share (cents)
Summarised consolidated cash flow statement
Year ended Six months ended
30 September 31 March
2006
R`000
`2007 `2006
R`000 R`000
18,923 Cash flow (used in) / from operating (25,381) (7,275)
activites
45,659 Profit before interest, tax and non- 28,479 21,444
cash items
(21,864) Change in inventory (22,423) (21,609)
(11,956) Change in receivables (10,405) (8,984)
26,771 Change in payables 860 17,572
38,610 Cash flow from operations (3,489) 8,423
(6,756) Net finance costs (12,174) (3,517)
76 Share of results from associates 210 76
(4,172) Taxation paid (1,093) (3,442)
(8,835) Dividends paid (8,835) (8,835)
(161,518) Cash flow used in investing (17,554) (164,215)
activities
(10,333) Investment in fixed assets (17,900) (3,905)
(160,788) Investment in preference shares - (160,788)
9,603 Proceeds from disposal of fixed 346 478
assets
154,029 Cash flow from financing activities 4,243 158,973
167,605 Interest bearing borrowings raised 16,327 163,293
(13,709) Interest bearing borrowings repaid (12,084) (4,384)
133 Loans advanced - 64
11,434 Net (decrease)/increase in cash & (38,692) (12,517)
cash equivalents
(12,706) Cash and cash equivalents at (1,272) (12,706)
beginning of period
(1,272) Cash and cash equivalents at end of (39,964) (25,223)
period
Summarised consolidated statement of changes in equity
Year ended Six months ended
30September 31 March
2006
`2007 `2006
R`000 R`000 R`000
184,337 Shareholders` funds at beginning of 199,033 182,271
the year
(834) Adjustment for cost of shares held - -
in group
24,365 Ordinary shareholders` profit 9,989 8,449
(8,835) Dividend paid (8,835) (8,834)
- ordinary
199,033 Shareholders` interests at end of 200,187 181,886
the period
Business segments
Mining Industrial Flexible Investment
Consum- Consum- Plastics Income,
Ables Ables Gundle Property
Inmins Inmins and
Other
R`000 Totals
Turnover 12 359,908 132,052 381,265 - 873,225
months
to Sept
2006
6 166,206 59,167 217,903 178 443,454
months
to
march
2007
6 175,877 65,362 171,204 - 412,443
months
to
march
2006
Operating 12 8,387 6,722 22,729 (82) 37,756
months
to sept
2006
Profit 6 3,211 3,506 7,954 (904) 13,767
months
to
march
2007
6 5,083 2,982 8,692 (366) 16,391
months
to
march
2006
Investment 12 - - - 14,656 14,656
months
to sept
2006
Income 6 - - - 11,213 11,213
months
to
march
2007
6 - - - 2,596 2,596
months
to
march
2006
Deprecia- 12 847 447 8,495 157 9,946
tion months
to sept
2006
6 524 287 5,690 161 6,662
months
to
march
2007
6 495 340 4,058 98 4,991
months
to
march
2006
Capital 12 835 671 8,097 730 10,333
months
to sept
2006
Expenditure 6 844 1,021 2,831 13,204 17,900
months
to
march
2007
6 286 328 3,281 10 3,905
months
to
march
2006
Total 12 123,680 39,056 224,000 200,834 587,570
months
to sept
2006
Assets 6 131,083 48,575 233,208 214,730 627,596
months
to
march
2007
6 121,997 43,645 203,820 201,427 570,889
months
to
march
2006
Total 12 61,030 19,290 137,704 168,226 386,250
months
to sept
2006
Liabilities 6 75,182 28,683 142,849 178,087 424,801
months
to
march
2007
6 64,163 22,310 134,728 167,654 388,855
months
to
march
2006
COMPANY PROFILE
The Winhold Group is an investment holding company with its main investments in
wholly owned subsidiaries Gundle Limited ("Gundle") and Inmins Limited
("Inmins").
Gundle consists of three manufacturing/distribution operations in Gauteng and
one in Swaziland, with a further four distribution centers in the main coastal
cities and Bloemfontein. Gundle manufactures and distributes polyethylene and
polypropylene bags, sheeting and packaging.
Inmins services the mining and industrial sectors, supplying mainly industrial
consumer goods, with an added value division also serving the mining sector.
REVIEW OF RESULTS
Earnings for the half year to 31 March 2007, increased by 18,2% to R9,99 million
(2006: R8,45 million), and headline earnings grew by 16,8% to R9,94 million
(2006: R8,51 million).
Headline earnings per share rose by 17,9% to 7,9 cents per share (2006: 6,7
cps).
Earnings per share increased by 19,4% to 8,0 cents per share (2006: 6,7 cps).
Revenue grew by 7,5% to R443 million (2006: R412 million).
Operating profit reduced by 16,0% to R13,77 million (2006 : R16,39 million).
Investment income increased to R11,2 million (2006: R2,6 million) due to the
return on the investment being only for 2 months in the previous period.
Interest paid has increased to R14,99 million (2006: R6,48 million) mainly due
to the funding of the BEE restructuring and being for a full six month period.
During the reporting period there was a net cash outflow of R38,7 million.
Inventory levels had to be increased to compensate for long lead times, as well
as substantial raw material price increases relating to steel and polymers.
Actions are being taken to reduce non-strategic stock holdings.
Receivables increased due to the higher raw material prices, which raised
selling prices.
The gearing remains high due to the 10 year loan raised in February 2006 for the
BEE restructuring, however, excluding the BEE restructuring, the gearing is 52%
( 2006 : 30% ), due to additional cash used in operating activities.
OPERATIONAL REVIEW
The Gundle Group
Two divisions performed well during this period, with one of them recording best
ever results. Market conditions remained difficult due to high polymer prices
and increased competition causing lower margins. Fertilizer sales reduced
significantly during January/February, due to adverse weather conditions. A
shortage in klinker supply to the cement mills caused lower cement output. Both
these factors impacted negatively on one of our divisions.
The Inmins Group
The platinum sector continued its significant growth which resulted in
outstanding results for the divisions serving this sector. The gold mining
sector continued to contract, contributing to our added value division`s
disappointing results. Some operations in the industrial division recorded
excellent results.
PROSPECTS
The results of the group for the second half of the year should be an
improvement on those of the first half.
Contributions from new product lines should continue to grow.
New supplier agreements have been entered into which should improve the results
in the coal sector.
Having completed the move of the Inmins value added division to new premises,
improved efficiencies and results are expected.
Improved performance from the joint ventures is expected in the second half of
the financial year.
Cashflow is expected to improve during the second half.
DIVIDENDS
In line with Group policy, no interim dividends have been declared.
CAPITAL COMMITMENTS
Plant and equipment to the value of R659 000 was on order as at 31 March 2007,
for use in existing operations. Further investment in plant and equipment to
improve capacity and efficiency is being considered.
BASIS OF PREPARATION
These abridged consolidated results have been prepared in accordance with
International Financial Reporting Standards ("IFRS") and the accounting
standards applicable to Interim Financial Reporting IAS 34, and in compliance
with the South African Companies Act (1973), and the Listing Requirements of the
JSE Limited.
AUDITED RESULTS
The financial information set out in these abridged consolidated group results
have been reviewed by BDO Spencer Steward (Johannesburg) Inc on a basis
consistent with the reporting of the previous financial year. Their unqualified
report is available for inspection at the registered office of the company.
DIRECTORATE
The following recent changes have taken place:
Ms NP Mnxasana was appointed as a non-executive director on 1 April 2007, and
has also been appointed to the Audit and Remuneration Committees. Further such
BEE appointments are imminent.
Mr DB Mostert, who has been a non-executive director since 2001, has been
appointed as the Deputy Chairman (non-executive). He replaces Mr JH Henderson
(Chick), who passed away in November 2006. Mr Mostert continues to serve on the
Audit Committee and as Chairman of the Remuneration Committee.
Mr CJ Pallas retired as the annual general meeting in March 2007, and did not
offer himself for re-election, due to his other commitments.
On behalf of the board
WAR WENTELER D B MOSTERT
Chairman Deputy Chairman
Date: 5 June 2007
Directors:
WAR Wenteler (Chairman),
DB Mostert (Deputy Chairman) #, W Fourie (Financial),
PJ Kruger, NP Mnxasana # (# Non-executive)
E-mail: secretary@winhold.co.za
Website: www.winhold.co.za
Auditors:
BDO Spencer Steward (Johannesburg) Inc
13 Wellington Road, Parktown, 2193
(Pvt Bag X60500, Houghton, 2041)
(Email : bdojhb@bdo.co.za)
Company Secretary and registered office:
D J de Villiers
884 Linton Jones Street, Industries East,Germiston
(PO Box 5324, Johannesburg 2000)
(Email : davedevilliers@winhold.co.za)
Transfer Secretaries:
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannesburg
(PO Box 61051, Marshalltown 2107)
(Email : registrar@computershare.co.za )
Date: 05/06/2007 17:30:01 Produced by the JSE SENS Department.
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