|
BWI
BWI
BWI - B&W Instrumentation And Electrical - Reviewed Consolidated Financial
Results For The Six Months Ended 29 February 2008 and dividend declaration
B&W Instrumentation and Electrical Limited
Incorporated in the Republic of South Africa
(Registration number 2001/008548/06)
Share code: BWI & ISIN: ZAE000098687
("B&W" or "the group")
Reviewed consolidated financial results For the six months ended 29 February
2008
- Revenue up 109%
- Net profit after tax up 215%
- Gross margin up 22%
- Earnings per share up 165%
- Cash generated R34 million
- Cash balance R68 million
COMMENTARY
Introduction
The directors of B&W are pleased to present the reviewed consolidated interim
financial results, for the six months ended 29 February 2008 ("the interim
period") which reflect considerable growth in revenue, profit and earnings per
share ("EPS").
Revenue more than doubled generating an increase of 215% in net profit after tax
("NPAT"), while EPS was up 165% from the previous comparative interim period in
line with the trading update published 14 March 2008.
A number of significant cross-border contracts secured during the interim period
have put the group firmly on track to meet forecast revenue for the full year
ending August 2008. Further, budgeted revenue for the year to August 2009 is
well within target with the secured contracts rolling over and contributing
approximately 30% of the total revenue for the 2009 financial year.
Basis of preparation
The reviewed consolidated interim financial statements for the six months ended
29 February 2008 have been prepared in accordance with IAS 34, International
Financial Reporting Standards and the Companies Act of South Africa, 1973, as
amended, and are based on appropriate accounting policies, consistently applied
with those applied in the most recent audited financial statements, which are
supported by reasonable and prudent judgements and estimates.
Group profile
B&W is a leading provider of electrical and instrumentation services to the
industrial utilities, mining, chemical, oil and gas and food and beverage
industries. Services include equipment procurement, project supervision,
installation, post-installation specialised calibration and commissioning and
ongoing maintenance.
Financial results
Revenue increased by 109% to R219 million, boosted by the successful completion
of a number of major contracts during the interim period. As a result, growth in
revenue outstripped the increase in operating expenses.
Gross profit equated to 22.1% of revenue, compared to 17.7% in the previous
comparative interim period.
Strong cash flow of R34 million saw an increase in interest received to R3.3
million from R0.4 million.
These factors together resulted in NPAT of R28.1 million (February 2007: R8.9
million) with EPS of 14.05 cents (February 2007: 5.3 cents) and Headline EPS
("HEPS") of 14.14 cents (February 2007: 5.1 cents).
Prospects
During the interim period contracts with an aggregate value of R214 million were
secured and additional work to the value of R83 million was negotiated on
existing contracts. Notably almost 90% of the new contracts relates to projects
outside of South Africa.
The current electricity crisis has a minimal direct effect on B&W`s operations.
After a comprehensive analysis of the potential impact on industry conditions
and prospects, B&W noted that while the crisis will have little or no effect on
cross-border contracts, certain local contracts may be cancelled or postponed
with effect from 2010.
However, targeted projects for 2008 and 2009 remain confirmed and further new
projects, expected to be driven by Eskom, the coal mining industry and
corporates instituting capital projects to optimise electricity allocation, will
come on-stream replacing cancelled projects.
Management remains confident that the crisis will not impact on B&W`s forecast
growth, although the group will continue focussing its strategy on increasing
contracts with US Dollar based blue chip mining clients.
Based on the reviewed consolidated interim results set out in this report and
taking into account contracts secured to date, management believes that probable
EPS and HEPS for the full financial year to August 2008 are expected to be
between 50% to 70% higher than forecast in the prelisting prospectus at between
24.8 cents and 28.1 cents.
Dividend policy
Group policy dictates the declaration of an annual dividend equating to 25% of
annual NPAT. In light of the group`s excellent performance and cash-positive
position, it has been decided that a declaration of an interim dividend of 2.0
cents per share (February 2007: Nil) is warranted. From time to time the board
will reconsider dividend cover based on the group`s cash flow, gearing and
capital requirements. The dividend will be financed out of B&W`s free cash flow.
The salient dates for the dividend are as follows:
Last day to trade shares
cum dividend Friday, 9 May 2008
Shares trade
ex dividend Monday, 12 May 2008
Record date Friday, 16 May 2008
Payment date Monday, 19 May 2008
No share certificates may be dematerialised or rematerialised between Monday, 12
May 2008 and Friday, 16 May 2008, both dates inclusive.
Review opinion
The consolidated financial results for the interim period have been reviewed by
the group`s auditors, Carrim, Maritz & Associates South Africa Inc. Their review
opinion is available for inspection at the group`s registered office.
CONSOLIDATED BALANCE SHEET
Reviewed Audited
29 Feb 2008 31 Aug 2007
R`000 R`000
Assets
Property, plant and 6 329 6 486
equipment
Amounts owing by group 533 6 034
companies
Current assets 148 128 120 322
Total assets 154 990 132 842
Equity and liabilities
Capital and reserves 86 050 64 944
Non-current 7 822 8 124
liabilities
Current liabilities 61 118 59 774
Total equity and 154 990 132 842
liabilities
Weighted average 200 000 000 175 000 000
number of ordinary
shares
Net asset value per 43.03 37.11
ordinary share (cents)
Net tangible asset 43.03 37.11
value per ordinary
share (cents)
CONSOLIDATED INCOME STATEMENT
Reviewed Reviewed
six months to six months to
29 Feb 2008 28 Feb 2007
R`000 R`000 % change
Revenue 219 281 105 023 109%
Cost of sales (170 778) (86 481)
Gross profit 48 503 18 542 162%
Other income 2 013 189
Operating (13 937) (6 211)
costs
Operating 36 579 12 520 192%
profit
Interest 3 303 372
received
Finance costs (90) (304)
Profit before 39 792 12 588 216%
tax
Taxation (11 686) (3 655)
Profit after 28 106 8 933 215%
taxation
Adjustment 166 (189)
for headline
earnings
Headline 28 272 8 744 223%
earnings
attributable
to ordinary
shareholders
Weighted 200 000 000 170 000 000
average
number of
ordinary
shares
Earnings per 14.05 5.3 165%
ordinary
share (cents)
Headline 14.14 5.1 177%
earnings per
ordinary
share (cents)
Dividend per 3.5 -
share
declared
(cents)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Share Share Distributable
capital premium reserve Total
R`000 R`000 R`000 R`000
Balance at 1 * * 7 868 7 868
September 2006
Net profit for 8 933 8 933
the period
Issue of share * 3 100 3 100
capital
Balance at 28 * 3 100 16 801 19 901
February 2007
2006
Balance at 1 * 3 100 16 801 19 901
March 2007
Net profit for 15 858 15 858
the period
Issue of share * 29 183 29 183
capital
Balance at 31 2 32 283 32 659 64 944
August 2007
2007
Balance at 1 2 32 283 32 659 64 944
September 2007
Net profit for 28 106 28 106
the period
Dividend (7 000) (7 000)
declared
Balance at 29 2 32 283 53 765 86 050
February 2008
*Less than R1 000
CONSOLIDATED CASH FLOW STATEMENT
Reviewed Reviewed
six months six months
to to
29 Feb 2008 28 Feb 2007
R`000 R`000
Cash flow from 29 933 (3 913)
operating activities
Cash flow from (651) (843)
investing activities
Cash flow from 5 500 (2 470)
financing activities
Increase/(Decrease) 34 782 (7 226)
in cash and cash
equivalents
Cash and cash 33 553 10 596
equivalents at the
beginning of the
period
Cash and cash 68 335 3 370
equivalents at the
end of the period
Details of the shares in issue at 29 February 2008 are as follows:
Number of shares in issue 203 990 000
Shares held as treasury shares 3 990 000
Consolidated ordinary shares 200 000 000
John Barrow Brian Harley
Chairman Managing Director
On behalf of the board.
16 April 2008
Directors:
John Barrow (Chairman), Brian Harley (Managing Director), Danie Evert (Financial
Director), Johan Breedt, Tom Lombard, Ken Nel, Dean Nevay, Gary Swanepoel, Sam
Vilakazi, Unati Mabandla*^, Jimmy Oosthuizen*^, Wolf Wassermeier*^
*Non-executive director
^Independent
Registered office:
139 Everfair Avenue, Randjesfontein, Midrand, 1685
(Private Bag X168, Halfway House, 1685)
Designated Advisor:
Merchant Sponsors (Proprietary) Limited
Transfer secretaries:
Computershare Investor Services 2004
(Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Company secretary:
Master Business Associates VII (Proprietary) Limited
139 Everfair Avenue, Randjesfontein, Midrand, 1685
(Private Bag X168, Halfway House, 1685)
Investor relations:
Envisage Investor & Corporate Relations
Date: 16/04/2008 11:42:01 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 ] | |||||||||||||
|
|||||||||||||
