|
SIC
SIC
SIC - Safic Holdings - Reviewed interim results for the period ended 31 December
2007
Safic Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 2004/029691/06)
Share Code: SIC
ISIN Code: ZAE000088068
("Safic Holdings or "the group")
REVIEWED INTERIM RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2007
HIGHLIGHTS
Headline earnings + 49.6%
HEPS + 18%
Revenue + 11%
Consolidated balance sheet
31 31 30 June
December December 2007
2007 2006 Audited
Reviewed Reviewed
R`000 R`000 R`000
Assets
Property, plant and 25 063 16 623 24 376
equipment
Goodwill 90 304 25 333 31 232
Intangible Assets 1 621 3 187 728
Other financial assets 9 2 632 480
Deferred tax 101 - 427
117 098 47 775 57 243
Current Assets
Inventories 40 405 30 607 34 665
Trade and other Receivables 55 370 34 239 29 943
Cash and cash equivalents 6 662 16 089 10 858
102 437 80 935 75 466
Total assets 219 535 128 710 132 709
Equity and liabilities
Capital and reserves 146 631 77 389 87 122
Non-current liabilities 6 055 11 035 6 114
Current liabilities 66 849 40 286 39 473
Total equity and liabilities 219 535 128 710 132 709
Number of shares in issue 97 657 75 186 75 186
725 521 521
Net asset value per share 150 103 116
(cents)
Tangible net asset value per 56 65 73
share (cents)
Consolidated income statement
6 Months ended 6 Months Year ended
31 December ended 30 June 2007
2007 31 December Audited
Reviewed 2006
R`000 Reviewed R`000
R`000
Revenue 121 883 109 705 210 199
Gross profit 66 315 56 372 114 049
Other (expenses) / income (167) 1 288 1 257
Operating costs 53 653 49 193 97 471
Earnings before interest, tax, 12 495 8 467 17 835
depreciation and amortisation
Depreciation and amortization 1 589 1 161 2 838
Profit before interest and 10 906 7 306 14 997
taxation
Net interest paid 590 659 410
Profit before taxation 10 316 6 647 14 587
Taxation 3 173 1 928 3 832
Profit for the period 7 143 4 719 10 755
Minority interest (loss) - (813) (49)
Net profit for the period 7 143 5 532 10 804
Reconciliation of headline
earnings
Profit attributable to 7 143 5 532 10 804
ordinary shareholders
Adjusted for profit on (29) (109) 337
disposal of property, plant
and equipment
Fairvalue adjustment 180 (172) 319
Loss on sale of subsidiary 559 - -
Headline earnings attributable 7 853 5 251 11 460
to ordinary shareholders
Weighted average number of 69 186 521
shares in issue 80 260 061 63 284 347
Basic earnings per share 8.9 8.7 15.6
(cents)
Headline earnings per share 9.8 8.3 16.6
(cents)
Consolidated cash flow statement
6 Months 6 Months Year ended
ended ended 30 June
31 December 31 December 2007
2007 2006 Audited
Reviewed Reviewed
R`000 R`000 R`000
Cash flows from operating 1 761 8 448 10 814
activities
Cash flows from investing (12 246) (19 748) (5 286)
activities
Cash flows from financing 6 309 25 394 5 310
activities
Cash flows for the period (4 176) 14 094 10 838
Cash and Cash equivalents 10 838 - -
at beginning of period
Cash and Cash equivalents 6 662 14 094 10 838
at end of period
Segment Report
For the 6 month period ended 31 December 2007
R`000 Environmental Infrastructural Elimination Combinatio
Solutions Development n
Revenue 40 316 88 207 (6 640) 121 883
Operating profit (1 196) 11 512 10 316
Income taxes 3 173
Profit for the period 7 143
Equity settled share (180) (180)
based payment
revaluation
Loss on sale of (559) (559)
investment
Capital expenditure 1 590 1 590
Depreciation and (717) (999) (1 716)
amortization
Segment assets 121 817 201 393 (188 679) 134 531
Segment liabilities (110 294) (58 015) 101 460 (66 849)
Reconciliation of
segment assets to
consolidated assets
Segment assets 134 531
Goodwill 90 304
Treasury shares (5 300)
Assets per balance 219 535
sheet
Segmental analysis for the 12 month period ended 30 June 2007
R`000 Environmental Infrastructural Elimination Combination
Solutions Development
Revenue 74 990 148 693 (13 484) 210 199
Operating profit 3 026 12 503 (532) 14 997
Finance costs (682) (497) 769 (410)
Income taxes (1 129) (2 703) - (3 832)
Minority interest 49
Profit for the period 10 804
Segment assets 96 259 75 710 (39 260) 132 709
Segment liabilities 54 351 30 496 (39 260) 45 587
Capital expenditure 5 525 2 585 8 110
Depreciation and 953 1 884 2 837
amortization
Statement of changes in equity For the 6 month period ended 31 December 2007
Share capital Share Reserve for Fair value
premium equity adjustment
R`000 settled assets
R`000 share based available for
payments sale reserve
R`000
R`000
Balance at 1 July 1 73 753 319
2007
Profit for the year
Equity settled share 180
based payments
Revaluation surplus
recognised directly
in equity
Deferred tax on
revaluation surplus
Net income /
(expenses) recognised
directly in equity
for the year 180
Issue of shares 36 485
Treasury shares (1 799)
Shares to be issued 17 500
for acquisition of
subsidiary
Balances at 31 1 108 439
December 2007 499 17 500
Statement of changes in equity For the 6 month period ended 31 December 2007
(Continued)
Revaluation Retained Total Minority Total
reserve income attributable interest equity
to equity
holders of
the group
R`000 R`000
R`000 R`000
R`000
Balance at 1 July 2 163 10 873 87 109 13 87 122
2007
Profit for the 7 143 7 143 7 143
year
Equity settled
share based 180 180
payments
Revaluation (34) 34 - 0
surplus recognised
directly in equity
Deferred tax on (24) 24 - 0
revaluation
surplus
Net income /
(expenses)
recognised
directly in equity (58) 7 201 7 323 7 323
for the year
Issue of shares 36 485 36 485
Treasury shares (1 799) (1 799)
Shares to be 17 500 17 500
issued for
acquisition of
subsidiary
Balances at 31 13
December 2007 2 105 18 074 146 618 146 631
INTRODUCTION
The directors are pleased to announce the interim financial results of Safic
Holdings Limited for the six months ended 31 December 2007 ("interim"),
following the first full year after the successful listing of the company in
November 2006 on the Alternative Exchange ("AltX") of the JSE Ltd.
The results exceeded those of the previous financial year as well as the
forecasts in the listing prospectus ("the listing forecasts"). Although all
indicators are significantly up, it is important to note that this growth is
mainly as the result of the organic growth and performance of the company as
listed. Although the Centurion Glass and Aluminium ("CGA") acquisition has
contributed to the results for November and December and these are included in
the figurers presented.
All key performance indicators are ahead of forecast.
Revenue up 11.1%
EBIDTA up 47.6%
PBIT up 49.3%
Headline earnings up 49.6%
Headline earnings per share up 18%
HEPS 9.8c (Forecast 14.65c for the year)
REVIEW OF OPERATIONS
Safic Holdings has continued its strategy of exploiting synergies within the
group companies while selectively growing revenue. Sustainable growth has been
the cornerstone of the group`s performance during the period under review. Even
though macro economic indicators have been less favorable than the corresponding
period, we continue to see demand for the product offering grow while strict
attention to cost control and operational efficiency has made a significant
contribution to the increased profitability.
FINANCIAL RESULTS
The group has achieved headline earnings attributable to ordinary shareholders
of R7.85 million for the 6 months ended 31 December 2007. This is a 49.6%
increase over the headline earnings for the comparative period ended 31 December
2006. The weighted average number of shares in issue has increased by 27%. On
this increased weighted average number of shares the group has still achieved
headline earnings per share of 9.8 cents per share. The headline earnings per
share exceeds the comparative period earnings by 18% and equates to 66.9% of the
forecasted headline earnings of 14.65 cents per share for the 12 month period
ended 30 June 2008 as published in the listing prospectus.
The group has maintained its gross profit margin over the reporting period and
has increased EBITDA from 8.5% at the end of June 2007 to 10.3% for the current
reporting period.
OPERATIONAL REVIEW
During the period under review, the flooring operation within the
Infrastructural Development Division, has still been the major contributor
towards both the revenue and the profitability of the group and the inclusion of
the glass and aluminium product offering should see this division becoming an
even more substantial contributor towards the revenue and profitability of the
group. The full impact of the CGA acquisition has not been included in the
financial performance for the period under review as the acquisition was only
concluded effective 1 November 2007.
Although Safic Holdings has seen an increase in activity as far as Government
Infrastructure Spend is concerned, we are confident that the full impact of this
will be evident within the next 18 months. All indications point towards a
steady increase in the demand for flooring products and exploiting the group
synergies will result in greater demand for the glass and aluminium division.
Major projects awarded to FloorworX Africa include Baragwanath Hospital (phase
2), 10 of the stadium upgrades for 2010, classroom upgrades as well as O R Tambo
and King Shaka Airports. In addition to other major projects CGA has also been
awarded the Natalspruit Hospital upgrade project, Reef Insurance as well as
Edcon projects.
The chemical division, Environmental Solutions, has seen a major operational
restructuring process. This exercise has repositioned the business in order to
take advantage of markets previously ignored and the period under review has
seen a major cost cutting initiative implemented. Although the period under
review reflects the costs incurred in reengineering the business and
profitability is not yet at the desired levels, management is confident that the
benefits of this exercise will be evident in the first half of the 2008/9
financial year. It is the belief of management that the successful co branding
of the Madam & Eve range of domestic products launched into the retail industry
will further enhance the earnings capability of this division.
PROSPECTS
Although macro economic indicators have changed dramatically compared to the
corresponding six months, we continue to see increased demand for the group`s
flooring, glass & aluminium and maintenance products. Management expects demand
to maintain and even increase over the next six months and well into the future.
A number of markets are also opening in Africa due to focused export efforts and
the relative weakness of the Rand. Historically, at current exchange rate levels
demand for the commodity level floor tiles and sheeting from the African
Continent increases dramatically and we expect this trend to continue resulting
in even greater demand for the flooring products produced at our manufacturing
facility in East London. Ongoing focus from management on cost control and
operational efficiency should see further improvements in operating margins.
The focus on previously ignored tender and contractual business within the
chemical division has already started to bear fruit and a substantial increase
in revenue is anticipated within the next financial year. This coupled with
increased efficiency and cost management initiatives should see this division
becoming a substantial contributor to both revenue and profit during the 2008/9
financial year.
Although certain sectors of the economy are anticipating a slowdown in activity
in the short and medium term, Safic does not operate within these interest rate
sensitive market segment and management remains extremely optimistic that we
will be able to deliver strong sustainable organic growth in the areas where we
currently operate and through strategic and well positioned acquisitions, we
will continue to meet and exceed the expectations of our shareholders in terms
of both revenue and earnings growth.
DIVIDENDS
No dividends have been declared for this reporting period.
CHANGES TO CAPITAL STRUCTURE
The issued ordinary shares have increased from 75 186 521 to 97 657 725 over the
reporting period. This majority of this increase relates to the purchase of
Silver Falcon 12 (Pty) Ltd trading as Centurion Glass and Aluminium in November
2007.
BASIS OF PREPARATION
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards and the Companies Act of South
Africa, 1973. The accounting policies used to prepare these financial statements
are consistent with those applied in previous financial years except for the
introduction of IAS11 Construction Contracts. This standard has been introduced
into the group through the purchase of Centurion Glass and Aluminium. The
Purchase Price Allocation for the acquisition as required by IFRS3 Business
Combinations will be concluded by the end of the current financial year.
POST BALANCE SHEET EVENT
The group has applied for liquidation of Safesco North Associated Blenders (Pty)
Ltd, a 51% subsidiary on 9 January 2008.
APPRECIATION
The board would like to take this opportunity to thank the various management
teams for their loyalty and dedication towards the achievement of the objectives
that has been set. The milestone objective of listing on the AltX has been
achieved through commitment and hard work. The board would also like to thank
its business partners, advisors and suppliers, and most importantly the
shareholders for their ongoing support and faith in the group.
By order of the Board
20 February 2007
F C Platt A J Voogt
Chief Executive Officer Financial Director
CORPORATE INFORMATION
Non executive Dr. M D C Motlatla
directors: M E Dipico
Executive directors: F C Platt
A J Voogt
Dr. D E Platt
A J Kerrod
Registration number: 2004/029691/06
Registered address: 32 Steele Street
Steeledale
2197
Postal address: P.O. Box 1754
Alberton
1450
Company secretary: G W Delport
Telephone: 011 406 4100
Facsimile: 086 687 9873
Transfer secretaries: Computershare Investor Services 2004
(Pty) Limited
Designated Adviser: Exchange Sponsors (Pty) Limited
Date: 22/02/2008 08:07:26 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.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
