| Fri 8 Jun 2007, 8:36 | | WES - Wesco - Audited results for the 12 months en |
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WES
WES
WES - Wesco - Audited results for the 12 months ended 31 March 2007 and dividend
announcement
WESCO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number 1968/005871/06
ISIN: ZAE000007928 JSE Share code: WES
("Wesco" or "the company")
Audited results for the 12 months ended 31 March 2007 and dividend announcement
ABRIDGED GROUP INCOME STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2007 2006
Income 21 694 15 565
Administrative expenses (5 364) (4 329)
Operating profit 16 330 11 236
Share of associates` income 187 671 245 391
Profit on disposal of associate 162 828
Profit before taxation 366 829 256 627
Taxation (80 080) (9 187)
Profit for the year 286 749 247 440
Attributable to:
Equity holders of the company 282 408 245 903
Minority interest 4 341 1 537
286 749 247 440
Per share information - cents
Basic earnings and diluted earnings 3 345 2 913
Disposal of associate:
- Profit (1 929)
- Attributable taxation 770
Headline earnings 2195 2913
Recognised pension fund surpluses 795
Adjusted headline earnings 1 400 2 913
Dividends declared and paid 1 200 2 400
ABRIDGED GROUP CASH FLOW STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2007 2006
Dividends received 113 560 52 399
Interest received 15 981 12 173
Dividends paid (101 302) (202 603)
Taxation paid (2 611) (20 526)
Other operating cash flows (3 956) (3 464)
Net cash flow in operating activities 21 672 (162 021)
Available-for-sale financial assets and (604 288) 92 804
operating assets (acquired) realised
Proceeds on disposal of associate 590 554
Increase (decrease) in cash and cash 7 938 (69 217)
equivalents
Cash and cash equivalents at end of the 36 148 28 210
year
ABRIDGED GROUP BALANCE SHEET
Audited Audited
31 March 31 March
R000 2007 2006
Assets
Non-current assets 1 168 162 1 438 201
Investment in associates 1 160 216 1 423 104
Property and equipment 3 620 3 662
Retirement benefit asset 3 083
Deferred taxation 1 243 11 435
Current assets 883 198 300 590
Total assets 2 051 360 1 738 791
Equity and liabilities
Capital and reserves 1 950 117 1 717 825
Minority interest 12 941 9 162
Deferred tax 20 784 10 754
Current liabilities 67 518 1 050
Total equity and liabilities 2 051 360 1 738 791
Net asset value per share - cents 23 101 20 349
Number of ordinary shares in issue (000) 8 441.8 8 441.8
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Audited Audited
year ended year ended
31 March 31 March
R000 2007 2006
Share capital
Balance at beginning and end of the year 11 752 11 752
Non-distributable reserves 1 125 573 1 275 031
Balance at beginning of the year 1 275 031 1 101 996
Dilution of interest in associate (2 560) (1 935)
Movement in associates` reserves (125) 201
Net fair value adjustment to available-for- 53 871 41 985
sale financial assets
Transfers (to) from retained earnings (200 644) 132 784
Retained earnings 812 792 431 042
Balance at beginning of the year 431 042 520 526
Profit for the year 282 408 245 903
Dividends (101 302) (202 603)
Transfers from (to) non-distributable 200 644 (132 784)
reserves
Total capital and reserves 1 950 117 1 717 825
Minority interest 12 941 9 162
Balance at beginning of the year 9 162 8 175
Profit for the year 4 341 1 537
Dividends paid (493) (493)
Other movements (69) (57)
Total equity 1 963 058 1 726 987
NOTES
1. Accounting policies
These consolidated financial statements have been prepared in accordance with
IAS34, Interim Financial Reporting, under the historical cost convention as
modified by the revaluation of available-for-sale financial assets. The
accounting policies have been applied consistently with those of the previous
year.
COMMENT
REVIEW
Income attributable to Wesco shareholders increased by 15% from R245.9 million
in 2006 to R282.4 million in the year under review. Headline earnings, which
exclude the group`s profit on disposal of its interest in motor component
manufacturer Metair Investments Limited, amounted to 2 195 cents (2006: 2 913
cents) per share, and adjusted headline earnings (headline earnings excluding
recognised retirement benefit fund surpluses) amounted to 1 400 cents (2006: 2
913 cents) per share.
Toyota South Africa (Pty) Ltd
Domestic motor vehicle sales increased by nearly 16% during the 2006 calendar
year. Local vehicle sales by Toyota SA in that period increased by 20% to 151
055 units, representing 21% of the market, and its exports increased from 20 660
units in 2005 to 49 142 units in 2006.
Toyota SA`s profit after tax for the financial year amounted to R435 million,
having returned to profitability during the last six months of the year as
anticipated in Wesco`s previous interim report. Results for the full year still
reflect the effect of substantial overheads and finance charges incurred to
increase production capacity. Margins were further depressed by unfavourable
exchange rates.
Toyota SA`s income for the year includes recognised net retirement benefit fund
surpluses of R259.7 million. Such surpluses were not previously accounted for
due to insufficient clarity regarding ownership. The Financial Services Board
has since approved the surplus apportionment scheme, and a surplus or shortfall
attributable to the employer are now accounted for in income in terms of
accounting practice.
Wesco`s share of Toyota SA`s profit amounted to R108.8 million.
Metair Investments Limited
As previously announced Wesco has sold its 38.9% interest in Metair during
December 2006. Total proceeds from the sale amounted toR590.5 million in cash,
and a profit of R162.8 million was realised. Capital Gains Tax attributable to
the transaction, as calculated on the share`s base cost, amounted to R65.7
million.
Wesco`s share of Metair income for the year up to the date of disposal is
accounted for in the income statement, and contributed R76.9 million (2006:
R60.9 million) to group income. Metair`s results for the year ended 31 December
2006 were previously released and reported on.
Other investments
Income from other investments increased from R15.6 million to R21.7 million,
mainly due to increased funds on investment. Fair value adjustments to these
investments, accounted for directly in equity, amounted to R53.8 million (2006:
R41.9 million).
OUTLOOK
Wesco is now almost entirely dependent on income from its investment in Toyota
SA, having sold its interest in Metair. It will take time for Toyota SA to
return to results comparable to those achieved in the 2006 financial year, but
an improvement in performance is however expected in the year ahead.
The Board will, in view of surplus funds on the balance sheet, consider an
additional dividend at Wesco`s interim reporting period.
DIRECTORATE
Mr P R Robinson has been determined an independent non-executive director of the
company with effect from 1 April 2007.
Mr A D Plummer resigned as a director on 7 June 2007.
AUDIT REPORT
The results for the year have been audited by PricewaterhouseCoopers Inc. and
their unqualified audit report on the 31 March 2007 annual financial statements
is available for inspection at the company`s registered office.
ANNUAL REPORT
The annual report for the year ended 31 March 2007 will be mailed to
shareholders on or about 18 June 2007.
ANNUAL GENERAL MEETING
The 2007 annual general meeting will be held at the company`s registered office
on Wednesday, 18 July 2007 at 11:00.
DIVIDEND
A final dividend (dividend number 39) of 600 (2006: 1 200) cents per ordinary
share has been declared in terms of the dividend announcement set out below.
On behalf of the board
E Le R BRADLEY G J STRYDOM
Chairman Chief Executive Officer
Johannesburg
7 June 2007
Registered office
Wesco House, 10 Anerley Road, Parktown, Johannesburg
Telephone 011 646-3011
Facsimile 011 646-3022
Postal address
P O Box 2077, Saxonwold 2132
Registrar
Computershare Investor Services 2004 (Pty) Ltd
70 Marshall Street, Johannnesburg 2001
(P O Box 61051, Marshalltown 2107)
Sponsor
Arcay Moela Sponsors (Pty) Ltd
Arcay House
3 Anerley Road (off Oxford Road), Parktown, Johannesburg
(P O Box 62397, Marshalltown 2107)
Auditors
PricewaterhouseCoopers Inc
2 Eglin Road, Sunninghill, Johannesburg
(Private Bag X36, Sunninghill 2157)
DIVIDEND ANNOUNCEMENT
Notice is hereby given that final dividend number 39 of 600 cents per ordinary
share has been declared in respect of the financial year ended 31 March 2007. In
compliance with the requirements of STRATE, the electronic settlement and
custody system used by the JSE Limited, the following salient dates for the
payment of the dividend are applicable:
Last day to trade cum-dividend Friday, 20 July 2007
Shares commence trading ex-dividend Monday, 23 July 2007
Record date Friday, 27 July 2007
Payment date Monday, 30 July 2007
Share certificates may not be dematerialised or rematerialised between Monday 23
July 2007 and Friday 27 July 2007, both days inclusive.
On Monday 30 July 2007, the dividend will be electronically transferred to the
bank accounts of certificated shareholders who utilise this facility. In respect
of those who do not, cheques dated 30 July 2007 will be posted on or about that
date. The accounts of those shareholders who have dematerialised their shares
(which are held at their central securities depository participant or broker)
will be credited on Monday 30 July 2007.
On behalf of the board
FDW PEACHEY
Company Secretary
Johannesburg
7 June 2007
Directorate:
Executive director: G J Strydom (Chief Executive Officer)
Independent non-executive directors: R S Broadley, P R Robinson
Non-executive directors: E le R Bradley (Chairman), A D Plummer (British)
(resigned 7 June 2007)
Company Secretary: F D W Peachey
Date: 08/06/2007 08:36:17 Produced by the JSE SENS Department.
