| Tue 12 Feb 2008, 16:00 | | KWS - Kwikspace Modular Buildings - Reviewed Interim Results For The |
|
KWS
KWS
KWS - Kwikspace Modular Buildings - Reviewed Interim Results For The
Six Months Ended 30 November 2007
KWIKSPACE MODULAR BUILDINGS LIMITED
Registration number 1997/008959/06
Share code: KWS
ISIN: ZAE000104287
Reviewed Interim Results For The Six Months Ended 30 November 2007
Highlights
- Revenue up 60,2%
- Operating up profit 51,3%
INTRODUCTION
The directors of Kwikspace are pleased to present the maiden reviewed interim
financial results for the six months ended 30 November 2007 ("the interim
period"), which results have exceeded expectations and delivered excellent
growth.
BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with IAS 34:
Interim Financial Reporting. The accounting policies adopted in the preparation
of these financials are consistent with those used to prepare the financial
statements for the six months ended 31 May 2007 and in accordance with
International Financial Reporting Standards (IFRS) and the South African
Companies Act.
The income statement for the six months ended 30 November 2006 is also used as a
comparative figure seeing as it will give a true reflection of the company`s
performance for the six months under review ending 30 November 2007. During this
period (1 June 2006 to 30 November 2006), however the company was operating as a
division of its former holding company, Steelwood Africa (Pty) Limited.
NATURE OF THE BUSINESS
Kwikspace is the largest and most diverse manufacturer of factory built
accomodation in Africa. Since 1972, Kwikspace has been manufacturing, selling
and renting modular buildings and is the only national modular building company
in South Africa and ISO 9001: 2000 accredited.
Rental
The company has approximately 2 200 rental units in its fleet, the largest
rental fleet in South Africa. Customers rent from 1 unit to 300 units at a time
and rental contracts range from 1 month to 3 years, with a current average
rental period of 5,2 months.
Mobile
Mobile units are manufactured at the company`s Johannesburg, Cape Town and
Durban factories. The mobile units are fully assembled at the factory and then
transported by road, rail or sea as fully built units ready for immediate
occupation in urban or rural areas.
Sizes vary up to 61m2 if transported fully assembled to the site or up to 612m2
if the unit is transported and later assembled on site.
Panelised
Panelised units are manufactured at the company`s Klipriver factory outside
Johannesburg in a component kit form and then transported to the customers`
sites and erected.
The company`s panelised products offer ranges from single 12m2 buildings to 20
000m2 turnkey camps housing thousands of people.
FINANCIAL REVIEW
Income statement
Revenue increased by 60,2% to R204,3 million (2006: R127,5 million)
Gross profit increased by 49,8% to R80,4 million (2006: R53,7 million)
EBIT grew significantly by 51,3% to R55,1 million (2006: R36,4 million)
Net profit after taxation increased by 30,2% to R32,5 million (2006: R25,0
million)
The difference in the increase in net profit after taxation (30,2%), in
comparison to the increase in the operating profit (51,3%), is the result of
finance costs increasing from R41 thousand for the period ending 30 November
2006 to R8,8 million during the six months under review ending 30 November 2007.
This increase in finance costs is the result of interest bearing shareholders`
loans of R150 million, resulting in interest paid to the amount of R8,4 million
on these loans. These loans were however settled during November 2007 and the
finance costs would therefore not apply for the next six months ending 31 May
2008.
The profit earned is not uniformly distributed between the first and second
halves of the year. The second half has short months in December, January and
April.
Headline earnings
6 months 6 months 6 months
Reviewed Reviewed Audited
30 November 30 November 31 May
R`000 2007 2006 2007
Earnings attributable to ordinary 32 498 24 957 19 076
shareholders
Adjustments
(Profit)/loss on sale of (164) 75 (186)
property, plant and equipment
Impairment of property, plant and 824
equipment
Total tax effect of adjustments 48 (22) 54
Headline earnings 33 206 25 010 18 944
Ordinary shares
Issued ordinary shares 85 384 615 - -
Weighted average number of shares 71 933 585 - -
Headline earnings per share 46,16 - -
(cents)
CAPITAL COMMITMENTS
The company has spent R29,0 million on property, plant and equipment, with R17,5
million authorised and committed for the remainder of the financial year.
The power problems currently being experienced with the load shedding from
Eskom, will not affect production, as generators have been or are about to be
installed at our factories.
PROSPECTS
The board expects that the economies in which the company operates will remain
strong for the foreseeable future, as will the demand for the company`s
products.
The company is currently busy with delivery to and construction on site relating
to numerous contracts in export countries like the DRC, Zambia, Senegal and
Angola.
The order books in the various business segments are full. Business is being
attracted from 3 areas in particular: mining in other countries in Africa, the
demand for schools and construction camps at power stations locally.
POST BALANCE EVENTS
There are no events after balance sheet date until the date of this release that
require additional disclosure.
DIVIDEND
No dividend has been declared for the period. As stated in the prospectus
dividends are subject to free cashflows.
It is anticipated that a maiden dividend would be declared after year-end while
maintaining 2,5 times cover.
CORPORATE GOVERNANCE
The directors and senior managers of the company endorse the Code of Corporate
Practices and Conduct as set out in the King II Report on Corporate Governance.
The board has to date formed a Remuneration Committee as well as an Audit
Committee.
REVIEW OPINION
The results for the period ended 30 November 2007 have been reviewed by the
company`s auditors, BDO Spencer Steward (Jhb) Inc., and the unqualified review
report is available for inspection at the company`s registered office.
APPRECIATION
We thank our loyal staff for their commitment and hard work which contributed to
Kwikspace`s achievement of its milestone listing on the main board of the JSE
Limited. We also thank our customers, business partners, advisors, suppliers and
most importantly our shareholders for their ongoing support and faith in the
company.
By order of the board
7 February 2008
KR Coulthard AJ Russell
Chief Executive Officer Financial Director
CONDENSED BALANCE SHEET
Reviewed Audited
30 November 31 May
R`000 2007 2007
Assets
Non-current assets
Property, plant and equipment 153 516 133 096
Goodwill 36 179 36 179
189 695 169 275
Current assets
Inventories 42 334 26 074
Trade and other receivables 112 237 78 893
Cash and cash equivalents 1 879 1 914
156 450 106 881
Total assets 346 145 276 156
Equity and liabilities
Equity
Share capital and premium 144 664 -
Non-distributable reserves
Accumulated profits 51 476 19 076
196 140 19 076
Liabilities
Non-current liabilities
Long-term financial liabilities 7 843 151 057
Deferred tax 26 234 27 411
34 077 178 468
Current liabilities
Loans from group companies 2 318
Current portion of long-term financial 1 244 654
liabilities
Taxation payable 14 947 7 669
Trade and other payables 72 797 67 261
Bank overdraft 26 940 710
115 928 78 612
Total equity and liabilities 346 145 276 156
Issued ordinary shares 85 384 615
Weighted average number of shares 71 933 585
Net asset value per share (cents) 272,67
Net tangible asset value per share (cents) 222,37
CONDENSED INCOME STATEMENT
6 months 6 months 6 months
Reviewed Reviewed Audited
30 November 30 November 31 May
R`000 2007 2006 2007
Revenue 204 250 127 511 139 510
Gross profit 80 395 53 653 60 380
Other income 159 1 466 87
Operating expenses (25 495) (18 727) (24 178)
Operating profit 55 059 36 392 36 289
Investment revenue 50 - 93
Finance costs (8 841) (41) (9 511)
Profit before taxation 46 268 36 351 26 871
Taxation (13 770) (11 394) (7 795)
Profit for the period 32 498 24 957 19 076
Issued ordinary shares 85 384 615
Weighted average number of 71 933 585
shares
Earnings per share (cents) 45,18
CONDENSED STATEMENT OF CHANGES IN EQUITY
6 months 6 months
Reviewed Audited
30 November 31 May
R`000 2007 2007
Shareholders` equity at the beginning of 19 076 -
the period
Issue of ordinary shares 150 000 -
Share issue expenses written off (5 434) -
Profit for the period 32 498 19 076
Shareholders` equity at the end of the 196 140 19 076
period
CONDENSED CASH FLOW STATEMENT
6 months 6 months
Reviewed Audited
30 November 31 May
R`000 2007 2007
Cash flow from operating activities 554 17 599
Cash flow from investing activities (26 443) (157 753)
Cash flow from financing activities (376) 150 711
Net (decrease)/increase in cash and cash (26 265) 10 557
equivalents
Cash and cash equivalents at the beginning 1 204 -
of the period
Cashflow on acquisition of business - (9 353)
Cash and cash equivalents at the end of the (25 061) 1 204
period
CONDENSED SEGMENTAL ANALYSIS
6 months 6 months
Reviewed Audited
30 November 31 May
R`000 2007 2007
Primary segment
Revenue
Rental 34 225 30 520
Mobiles and panelised 170 025 108 990
Corporate and other - -
204 250 139 510
Operating profit
Rental 25 580 24 730
Mobiles and panelised 38 114 16 665
Corporate and other (8 635) (5 106)
55 059 36 289
CORPORATE INFORMATION
Executive directors: KR Coulthard (CEO); JP Jooste; AJ Russell; SC Slabbert; BL
Viviers
Non-executive directors: WRG Post (Chairperson); LT Buthelezi; MC Mogase; SK
Mota; AJ Phillips; JA Flint
Registration number: 1997/008959/06
Registered address: 32 Karee Kloof Road, Waterval, Klipriver
Postal address: PO Box 580, Klipriver, 1871
Company secretary: AJ Russell
Telephone: (011) 617 8000 Facsimile: (011) 903 8993
Transfer secretaries: Link Market Services South Africa (Pty) Limited
Legal Advisors: Prinsloo, Tindle & Andropoulos Inc.
Lead Sponsor: JP Morgan Equities Limited
These results and an overview of Kwikspace are available at www.kwikspace.co.za
12 February 2008
Date: 12/02/2008 16:00:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
