| Fri 9 Nov 2007, 17:21 | | WES - Wesco Investments - Interim Report For The S |
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WES
WES
WES - Wesco Investments - Interim Report For The Six Months Ended
30 September 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", "the group" or "the company")
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 AND DIVIDEND
ANNOUNCEMENT
ABRIDGED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 Sept. 30 Sept. 31 Mar.
R000 2007 2006 2007
Income 18 095 4 427 21 694
Administrative expenses (2 706) (2 560) (5 364)
Operating profit 15 389 1 867 16 330
Share of associates` income 49 610 25 140 187 671
Profit on disposal of 162 828
associate
Profit on disposal of other 124 583
investments
Profit before taxation 189 582 27 007 366 829
Taxation (24 207) (11 873) (80 080)
Profit for the period 165 375 15 134 286 749
Attributable to:
Equity holders of the company 165 375 14 287 282 408
Minority interest 847 4 341
165 375 15 134 286 749
Per share information - cents
Basic earnings and diluted 1 959 169 3 345
earnings
Disposal of investments
- Profit (1 476) (1 929)
- Attributable taxation 213 779
Headline earnings 696 169 2 195
Recognised pension fund (795)
surpluses
Adjusted headline earnings 696 169 1 400
Dividends declared and paid 600 1 200 1 200
ABRIDGED GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 Sept. 30 Sept. 31 Mar.
R000 2007 2006 2007
Dividends received 25 113 112 445 113 560
Interest received 14 955 3 026 15 981
Dividends paid (50 651) (101 302) (101 302)
Taxation paid (69 257) (203) (2 611)
Other operating cash flows (2 337) (1 186) (3 956)
Net cash flows in operating (82 177) 12 780 21 672
activities
Available-for-sale financial 221 768 (1 951) (604 288)
assets and operating assets
realised (acquired)
Proceeds on disposal of 590 554
associate
Increase in cash and cash 139 591 10 829 7 938
equivalents
Cash and cash equivalents at 175 739 39 039 36 148
end of the period
ABRIDGED GROUP BALANCE SHEET
Unaudited Unaudited Audited
30 Sept. 30 Sept. 31 Mar.
R000 2007 2006 2007
Assets
Non-current assets 1 194 561 1 428 836 1 168 162
Investment in associates 1 187 892 1 425 180 1 160 216
Property and equipment 3 586 3 656 3 620
Retirement benefit asset 3 083 3 083
Deferred taxation 1 243
Current assets 798 063 235 079 883 198
Total assets 1 992 624 1 663 915 2 051 360
Equity and liabilities
Capital and reserves 1 956 224 1 639 949 1 950 117
Minority interest 12 941 9 440 12 941
Deferred taxation 2 413 12 796 20 784
Current liabilities 21 046 1 730 67 518
Total equity and liabilities 1 992 624 1 663 915 2 051 360
Net asset value per share - 23 173 19 427 23 101
cents
Number of ordinary shares in 8 441.8 8 441.8 8 441.8
issue (000)
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
ended ended ended
30 Sept. 30 Sept. 31 Mar.
R000 2007 2006 2007
Share capital
Balance at beginning and end 11 752 11 752 11 752
of the period
Non-distributable reserves 1 044 632 1 289 231 1 125 573
Balance at beginning of the 1 125 573 1 275 031 1 275 031
period
Net fair value adjustments to (2 026) 12 045 53 871
available-for-sale financial
assets
Fair value adjustments (106 591)
realised on disposal of
available-for-sale financial
assets
Dilution of interest in (2 644) (2 560)
associate
Movement in associates` (262) (125)
reserves
Transfers from (to) retained 27 676 5 061 (200 644)
earnings
Retained earnings 899 840 338 966 812 792
Balance at beginning of the 812 792 431 042 431 042
period
Profit for the period 165 375 14 287 282 408
Dividends paid (50 651) (101 302) (101 302)
Transfer (to) from non- (27 676) (5 061) 200 644
distributable reserves
Total capital and reserves 1 956 224 1 639 949 1 950 117
Minority interest 12 941 9 440 12 941
Balance at beginning of the 12 941 9 162 9 162
period
Profit for the period 847 4 341
Dividends paid (493) (493)
Other movements (76) (69)
Total equity 1 969 165 1 649 389 1 963 058
NOTES TO THE INTERIM REPORT
Accounting policies
These interim abridged 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 assets. These accounting
policies are consistent with those used in the preparation of the annual
financial statements for the year ended 31 March 2007.
COMMENTResultsToyota South Africa (Pty) LtdTotal unit sales in the domestic
motor vehicle market for the calendar year to September decreased by 3% compared
to the previous comparative period, reflecting the impact of higher interest
rates. Toyota SA`s local sales marginally increased to 113 809 units, improving
the brand`s market share to 22%.
Toyota SA`s turnover increased from R14.03 billion to R16.9 billion during the
six months under review with export unit sales having increased by 25%. Finance
costs rose to R176 million from R98 million, following increased capital
expenditure in plant expansion. Profit after tax amounted to R198 million
compared to a loss of R36.8 million in the previous period.
Subsequent to its 2007 financial year-end, Toyota SA declared and paid a
dividend of R87.7 million, of which Wesco received R21.9 million.
Other investmentsIncome from cash and available-for-sale financial assets
increased from R4.4 million to R18.1 million during the period under review due
to increased funds on investment.
Available-for-sale financial assets were partially redeemed during the period at
a profit of R124.6 million. Unrealised appreciation in the value of these assets
was accounted for in non-distributable reserves in previous periods.
OutlookToyota`s full year results are expected to reflect the softening in the
domestic vehicle market that is presently being experienced.
Payment of the special dividend referred to below will attract Secondary Tax on
Companies, and income from other investments will thereafter diminish.
DIRECTORATEMr A D Plummer resigned as a director on 7 June 2007. Dr M L Benade
was appointed as an independent non-executive director with effect from 1
September 2007. On 1 October 2007 Dr Benade was appointed as a member of the
company`s audit and remuneration committees.
DIVIDENDThe company has decided to distribute R658 million in surplus funds to
shareholders, and a special dividend of 7 800 cents per ordinary share has
therefore been declared in terms of the dividend announcement set out below.
On behalf of the board
E Le R BRADLEY G J STRYDOMNon-executive
Chairman Chief Executive Officer
Johannesburg9 November 2007
Registered officeWesco House, 10 Anerley Road,Parktown, JohannesburgTelephone
011 646 3011Facsimile 011 646 3022Postal addressP O Box 2077, Saxonwold 2132
E-mailinfo@wesco.co.za
Websitewww.wesco.co.za
SponsorArcay Moela Sponsors (Pty) LtdArcay House, 3 Anerley Road,Parktown,
Johannesburg(P O Box 62397, Marshalltown 2107)
RegistrarComputershare Investor Services 2004 (Pty) Ltd70 Marshall Street,
Johannesburg 2001(P O Box 61051, Marshalltown 2107)
AuditorsPricewaterhouseCoopers Inc.2 Eglin Road, Sunninghill,
Johannesburg(Private Bag X36, Sunninghill 2157)
DIVIDEND ANNOUNCEMENTNotice is hereby given that a special dividend, dividend
number 40, of
7 800 cents per ordinary share, has been declared from retained earnings. In
accordance with the requirements of STRATE, the electronic settlement and
custody system used by the JSE Limited and the JSE Listings Requirements, the
following salient dates for the payment of the dividend are applicable.
Last day to trade cum-dividend Friday, 23 November 2007
Shares commence trading ex-dividend Monday, 26 November 2007
Record date Friday, 30 November 2007
Payment date Monday, 3 December 2007
Share certificates may not be dematerialised or rematerialised between Monday,
26 November 2007 and Friday, 30 November 2007, both days inclusive.
On Monday, 3 December 2007, the dividend will be electronically transferred to
the bank accounts of certificated shareholders who will utilise this facility.
In respect of those who do not, cheques dated Monday, 3 December 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, 3 December 2007.
On behalf of the board
FDW PEACHEY Johannesburg
Company Secretary 9 November 2007
Directorate:
Executive director: G J Strydom (Chief Executive Officer)Non-executive director:
E Le R Bradley (Chairman)Independent non-executive directors: Dr M L Benade, R S
Broadley,
P R Robinson
Company SecretaryF D W Peachey
These results are available on the company`s website: www.wesco.co.za
Date: 09/11/2007 17:21:26 Produced by the JSE SENS Department.
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