| Tue 12 Feb 2008, 12:31 | | ARH - ARB Holdings - Unaudited Interim Results For The Six Months |
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ARH
ARH
ARH - ARB Holdings - Unaudited Interim Results For The Six Months
Ended 31 December 2007
ARB HOLDINGS LIMITED
("ARB" or "the company")
(Registration number: 1986/002975/06)
Share code: ARH & ISIN: ZAE000109435
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2007
HIGHLIGHTS
- Revenue up 17%
- Attributable profit ahead of pre-listing forecasts
- Successful listing on JSE - November 2007
ABRIDGED GROUP INCOME STATEMENT
Unaudited Unaudited Audited
6 Months 6 Months Year to
Dec 2007 Dec 2006 June 2007
R000`s R000`s R000`s
Revenue 596 388 508 598 1 047 642
Profit before interest
and taxation 90 301 82 148 193 084
Interest received 2 572 665 1 416
Interest paid (5 329) (6 028) (13 595)
Profit before taxation 87 544 76 785 180 905
Taxation 28 668 22 268 53 275
Profit for the period 58 876 54 517 127 630
Minority interest 13 757 13 109 26 027
Profit attributable to
ordinary shareholders 45 119 41 408 101 603
Headline earnings adjustment - - (24 521)
Taxation on adjustments - - 7 111
Headline earnings 45 119 41 408 84 193
Number of ordinary shares in
issue (000`s) 235 000 200 000 200 000
Weighted average number
of shares (000`s) 207 989 200 000 200 000
Diluted number of shares (000`s) 207 989 200 000 200 000
Earnings per share (cents) 21,7 20,7 50.8
Headline earnings per share (cents) 21,7 20,7 42,1
Comparative numbers of pro forma ordinary shares are stated after taking into
account the share split on 15 October 2007 of 10 000 for 1.
The headline earnings adjustment relates to the revaluation of land and
buildings.
No segmental report has been prepared as the group does not have separately
identifiable reporting segments.
ABRIDGED GROUP CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 Months 6 Months Year to
Dec 2007 Dec 2006 June 2007
R000`s R000`s R000`s
Cash generated by
operating activities 96 158 (40 143) 81 543
Interest received 2 572 665 1 416
Interest paid (5 329) (6 028) (13 595)
Taxation paid (41 663) (5 357) (41 260)
Secondary taxation
on companies paid (3 275) - -
Cash flows from
operating activities 48 463 (50 863) 28 104
Cash flows from
investing activities (6 879) (13 156) (19 455)
Cash flows from
financing activities
Net proceeds of share issue 171 444 - -
Dividends paid (57 700) - -
Interest-bearing loans repaid (78 776) 13 451 29 075
Net increase in cash resources 76 552 (50 568) 37 724
Cash borrowings at beginning
of period (22 000) (59 724) (59 724)
Cash resources at end of period 54 552 (110 292) (22 000)
Abridged Group Balance Sheet
Unaudited Unaudited Audited
6 Months 6 Months Year to
Dec 2007 Dec 2006 June 2007
R000`s R000`s R000`s
ASSETS
Non-current assets
Property, plant and equipment 82 518 48 440 77 310
Deferred taxation 1 659 2 243 2 373
Current assets
Inventory 220 962 232 449 213 500
Trade and other receivables 155 465 135 302 195 854
Cash resources 54 552 21 23
Total assets 515 156 418 455 489 060
EQUITY and LIABILITIES
Equity and reserves
Share capital and share premium 171 464 20 20
Non-distributable reserve 9 374 9 374 9 374
Revaluation reserve 23 893 6 483 23 893
Accumulated profits 140 579 109 335 152 120
Total ordinary shareholders` funds 345 310 125 212 185 407
Minority interest 46 304 20 669 33 587
Total shareholders` funds 391 614 145 881 218 994
Non-current liabilities
Interest-bearing borrowings 6 492 41 376 40 070
Deferred taxation 8 941 - 8 580
Current liabilities
Trade and other payables 104 295 58 062 133 024
Current portion interest-bearing
borrowings 1 897 9 930 9 930
Current portion deferred
lease payments 12 62 24
Shareholders` loans - 20 235 37 165
Taxation payable 1 905 32 596 19 250
Bank overdraft - 110 313 22 023
Total equity and liabilities 515 156 418 455 489 060
Number of ordinary shares
in issue (000`s) 235 000 200 000 200 000
Net asset value per share (cents) 146,94 62,61 92,70
Comparative numbers of pro forma ordinary shares are stated after taking into
account the share split on 15 October 2007 of 10 000 for 1
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Share capital and Revaluation Non-distributable
share premium reserve reserve
R000`s R000`s R000`s
Balance at 1 July 2006
(Audited) 20 6 483 9 374
Profit for the period - - -
Balance at 31 December
2006 (Unaudited) 20 6 483 9 374
Profit for the period - - -
Revaluation of
property, plant
and equipment net
of taxation - 17 410 -
Balance at 30 June
2007 (Audited) 20 23 893 9 374
Net proceeds of
share issue 171 444 - -
Profit for the period - - -
Dividends paid - - -
Balance at 31 December
2007 (Unaudited) 171 464 23 893 9 374
Minority Accumulated
interest profits Total
R000`s R000`s R000`s
Balance at 1 July 2006
(Audited) 7 560 67 927 91 364
Profit for the period 13 109 41 408 54 517
Balance at 31 December
2006 (Unaudited) 20 669 109 335 145 881
Profit for the period 12 918 60 195 73 113
Revaluation of
property, plant
and equipment net
of taxation - (17 410) -
Balance at 30 June
2007 (Audited) 33 587 152 120 218 994
Net proceeds of
share issue - - 171 444
Profit for the period 13 757 45 119 58 876
Dividends paid (1 040) (56 660) (57 700)
Balance at 31 December
2007 (Unaudited) 46 304 140 579 391 614
COMMENTS
Introduction
The Board is pleased to present the maiden interim results since listing for
the six months ended 31 December 2007 ("the period"), which reflect adequate
growth in key performance indicators from the previous comparative interim
period and are in line with the financial forecasts set out in ARB`s
prospectus.
On 20 November 2007 the company successfully debuted on the JSE Limited`s main
board in the "Electronic and Electrical Equipment" sector.
Basis of preparation
The unaudited interim financial statements for the period have been prepared in
compliance with International Accounting Standard (IAS 34) - Interim Financial
Reporting. The accounting policies applied in preparing these unaudited interim
financial statements are consistent with those applied in the annual financial
statements for the year ended 30 June 2007 and comply with the statements of
International Financial Reporting Standards and the South African Companies
Act.
Financial review
Revenue increased by 17,3% to R596,4 million from R508,6 million in the
comparative interim period, generating a 9% growth in profit attributable to
ordinary shareholders to R45,1 million from R41,4 million, ahead of the
forecast in the prospectus. As forecast, profit margins have declined to
15,1%. Headline earnings per share increased to 21,7 cents from 20,7 cents.
The majority of borrowings has been repaid utilising the funds raised on
listing leaving ARB in a cash-positive position to finance any expansion
plans. The company`s financing facilities remain available to fund any
additional working capital.
Operational review
Despite the current power crisis in South Africa the electrification project in
rural areas has continued unabated. All of the group`s branches maintained the
anticipated levels of growth during the period. The Gauteng branch accounted
for 34% (2006: 23%) of revenue, reflecting the group`s continued penetration
into this market. ARB has successfully won orders from regions where it has no
established presence and these regions are accordingly being prioritised in the
group`s geographic expansion programme.
Prospects
The directors anticipate further growth in market share.
Eskom has confirmed that there will be no budget cut in the planned low-cost
housing connections in 2008. Furthermore, the Department of Minerals & Energy
has confirmed a planned R1 billion spend for 2008/9 for electrical connectivity
particularly in schools and clinics nationwide as well as low-cost housing.
In addition, the directors continue to investigate and assess potential
acquisition opportunities to enhance ARB`s planned geographical expansion.
Dividend
Prior to the listing, a dividend of R57,7 million was declared and paid to
shareholders.
In line with the policy set out in the prospectus, no interim dividend has been
declared. ARB`s dividend policy is to distribute a final dividend for the full
year of up to a maximum of one third of net profit after taxation.
Appreciation
We thank the management teams and employees of ARB for their commitment and
hard work that contributed to the company`s successful listing on the JSE. We
also welcome our new stakeholders and thank our advisors, suppliers and clients
for their invaluable ongoing support.
For and on behalf of the Board.
Alan R Burke Craig Robertson
Chairman CEO
12 February 2008
Directors: AR Burke (Chairman)*; CC Robertson (CEO); WR Neasham
(Financial Director); JR Modise*; DF Muhlwa*; ST Downes *>
*non-executive >independent
Registered office: 10 Mack Road, Prospecton, Durban, 4110 (PO Box 26426,
Isipingo Beach, 4115)
Corporate advisor and sponsor: Bridge Capital Advisors (Pty) Limited
Transfer secretaries: Computershare Investor Services 2004 (Pty)
Limited, 70 Marshall Street, Johannesburg , 2001 (PO Box 61051,
Marshalltown, 2107)
Company secretary: WR Neasham CA(SA), 10 Mack Road, Prospecton, Durban,
4110 (PO Box 26426, Isipingo Beach, 4115)
Investor relations: Envisage Investor and Corporate Relations
www.arb.co.za
12 February 2008
Date: 12/02/2008 12:31:05 Produced by the JSE SENS Department.
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