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TWP
TWP
TWP - TWP holdings limited - Reviewed results for the 12 months ended 29
February 2008
TWP Holdings Limited
Reg number: 2003/025640/06
Share code: TWP
ISIN: ZAE000110763
REVIEWED RESULTS FOR THE 12 MONTHS ENDED 29 FEBRUARY 2008
Highlights
Pre-tax profit of R155 million up 228% Turnover of R705 million up 126%
Headline earnings per share of 93.82 cents up 187%
Exceptional performance exceeding the forecast included in the TWP Holdings
pre-listing statement
Summarised Consolidated Income Statement
Reviewed Audited
12 months 12 months
29 February 28 February
R`000 2008 2007
Revenue 705,006 312,608
Cost of sales (414,020) (222,319)
Gross profit 290,986 90,289
Administrative and other operating expenses (149,996) (42,234)
Operating profit 140,990 48,055
Sundry income 13,482 1,143
Fair value loss on Financial Instrument - 718
Interest received 5,249 248
Interest paid (5,019) (3,058)
Profit before income taxes 154,702 47,106
Income tax expense (44,943) (13,989)
Net profit for the year 109,759 33,117
Net profit for the year attributable to
- Equity shareholders of the parent company 105,737 32,642
- Outside shareholders 4,022 475
Net profit for the year 109,759 33,117
Basic earnings per share (cents) 102.20 32.64
Headline earnings per share (cents) 93.82 32.64
Diluted earnings per share (cents) 102.20 32.64
Diluted headline earnings per share (cents) 93.82 32.64
Summarised Consolidated Balance Sheet
Reviewed Audited
29 February 28 February
R`000 2008 2007
ASSETS
Non-current asset
Property, plant and equipment 37,588 39,399
Loans to related parties 1,250 1,961
Available-for-sale financial assets 51,261 -
Deferred taxation 1,023 253
Goodwill 36,726 36,726
127,848 78,339
Current assets
Trade and other receivables 173,883 65,160
Work in progress 61,850 9,013
Cash and cash equivalents 91,259 2,094
326,992 76,267
Total assets 454,840 154,606
SHAREHOLDERS` EQUITY
Capital and reserves
Share capital and premium 190,391 100
FCTR 458 -
Transactions with minorities (15,445) -
Retained earnings 154,593 48,856
329,997 48,956
Minority interest 1,769 475
331,766 49,431
LIABILITIES
Non-current liabilities
Financial instrument - 132
Deferred taxation 9,168 1,569
Long-term liabilities 4,609 20,234
13,777 21,935
Current liabilities
Trade and other payables 22,470 13,703
Accruals and provisions 39,180 10,543
Taxation 27,056 15,360
Deferred revenue 283 -
Shareholders` loans - 21,343
Loans from related parties 5,331 1,451
Short-term portion of long-term liabilities 2,542 4,364
Unsecured short-term loan - 12,700
Bank overdraft 12,435 3,776
109,297 83,240
Total equity and liabilities 454,840 154,606
Summarised Consolidated Statement of Changes in Equity
Foreign Transactions
Share currency with
capital translation Retained Minority minori-
R`000 and premium reserve earnings interest ties Total
Balance at
1 March 2006 100 - 18,408 - - 18,508
Impact of share
buy-back (21) - (2,194) - - (2,215)
Shares re-issued 21 - - - - 21
Net profit for the
period - - 32,642 475 - 33,117
Balance at
28 February 2007 100 - 48,856 475 - 49,431
Shares issued 200,000 - - - - 200,000
Transaction
costs (18,253) - - - - (18,253)
Minority buy-outs 8,544 - - (2,930)(15,445) (9,831)
Acquisitions of
subsidiaries - - - 137 - 137
Translation of
foreign operations - 458 - 65 - 523
Net profit for the
period - - 105,737 4,022 - 109,759
Balance at
29 February 2008 190,391 458 154,593 1,769 (15,445) 331,766
Summarised Consolidated Cash Flow Statement
Reviewed Audited
12 months 12 months
29 February 28 February
R`000 2008 2007
Net profit before taxation 154,702 47,106
Non cash flow items and items relating
to other activities (3,202) 6,864
Working capital movements (122,270) (29,494)
Cash generated from operating activities 29,230 24,476
Interest received 5,249 248
Dividends received 941 -
Interest paid (5,019) (3,058)
Taxation paid (26,428) (5,039)
Cash flow from operating activities 3,973 16,627
Cash flow from investing activities (86,841) (14,449)
Cash flow from financing activities 162,851 999
Movement in cash and cash equivalents 79,983 3,177
Cash and cash equivalents at beginning
of period (1,682) (4,859)
Exchange differences on translation
of foreign operations 523 -
Cash and cash equivalents at end of period 78,824 (1,682)
Notes to the summarised consolidated financial statements
Basis of preparation
These summarised consolidated annual financial statements have been prepared
in terms of International Financial Reporting Standards, IAS34 on Interim
Financial Reporting and Schedule 4 of the South African Companies Act. The
accounting policies used in the preparation of these annual financial
statements are consistent with those applied in the annual financial
statements for the year ended 28 February 2007, which were included in
the PLS. The results for the year ended 29 February 2008 have been reviewed
by the group`s auditors, PricewaterhouseCoopers Inc, and the unqualified
review report is available for inspection at the company`s registered office.
Basic earnings per share, diluted earnings per share and headline earnings
per share are calculated as follows:
Reviewed Audited
12 months 12 months
29 February 28 February
2008 2007
Basic earnings per share
Basic earnings per share (cents) 102.20 32.64
is calculated based on a net profit of (R`000) 105,737 32,642
and a weighted average number
of shares outstanding of 103,459,425 100,000,000
Diluted basic earnings per share
Other than the TWP Holdings ordinary shares
which are listed on the JSE Ltd, no securities
have been issued by TWP Holdings nor listed
on any other stock exchange. No other potential
ordinary shares have been issued by the company
and therefore will there be no dilution of the
current basic earnings per share.
Headline earnings per share
Headline earnings per share (cents) 93.82 32.64
is calculated based on a net profit of (R`000) 97,064 32,642
and a weighted average number of shares
outstanding of 103,459,425 100,000,000
Reconciliation of basic earnings and
headline earnings for the year:
Net profit for the year (R`000) 105,737 32,642
Adjusted for the after tax effect of:
Gains on the disposal of assets and investments (4,707) -
Gains on the disposal of subsidiaries (3,966) -
Headline earnings 97,064 32,642
Financial results and review of operations
Financial results:
Revenue growth increased by 126% to R705 million compared to the previous
financial year. Gross profit increased by R201 million to R291 million
(up 222%). The performance, which exceeded the forecast published in the
group`s pre-listing statement ("PLS"), was as a result of strong demand
for the group`s services in all fields of operation.
Operating profit improved by 193% and pre-tax profit by 228%. Headline
earnings per share of 93.82 cents is published for the first time as TWP
Holdings is a newly-listed entity and represents a 187% increase when
compared to a prior year headline earnings per share of 32.64 cents.
Sundry income includes profit on the sale of subsidiary TWP House (Pty)
Limited amounting to R4.6 million as well as profit on the sale of an
investment amounting to R5.4 million.
The balance sheet remains strong with net assets amounting to R331.8 million
including available for sale investments of R51.3 million and a net cash
balance of R79 million. The improved balance sheet position is due mainly
to the positive impact of increased operating activities as well as the funds
raised as part of the group`s private placement of shares during November 2007.
Review of operations:
The group`s core businesses all performed well and experienced strong growth
throughout the year. It is pleasing to note that TWP Holdings and its group
companies enjoy continued support from their clients and are able to deal with
the skills shortage in an innovative and sustainable manner. The ability to
attract and retain staff has been enhanced by the listing and the group share
incentive scheme which is currently being implemented.
Growth is underpinned by strong demand for the group`s services globally and in
Africa and Australia in particular. The order book is extremely robust and new
commissions are being secured on a regular basis.
While some of the group`s projects are affected by electricity load shedding
this has had no material impact on either profitability or the project pipeline.
Opportunities are being sought to address the power supply problems by the
innovative use of technology available to the group.
Post balance sheet events:
On 29 February 2008 TWP Holdings announced that it had entered into an agreement
to acquire 100% of the issued share capital of, and shareholder loans to, TPS
Architects (Pty) Limited, one of South Africa`s largest firms of industrial and
commercial architects. This transaction is still subject to regulatory approval
and finalisation of due diligence procedures.
Dividends:
As noted in the PLS, no dividend has been declared as the group`s financial
reserves are being used to grow the business organically and by acquisition.
Prospects:
The Board is pleased with the group`s operations and expects strong growth to
continue. As such the forecasts made in the PLS remain valid and achievable.
Announcements regarding new work, acquisitions and opportunities being pursued
can be expected throughout the forthcoming year.
On Behalf of the Board
E Dube
Chairman
N Townshend
Chief Executive Officer
S Dewsbery
Chief Financial Officer 5 May 2008
TWP Holdings Limited
Reg number: 2003/025640/06
Share code: TWP
ISIN: ZAE000110763
Directors
E Dube *(Chairman)
A Lawless *
H Makapula *
N Townshend (CEO)
S Dewsbery (CFO)
*Non-executive
Registered address: The Atrium, 7th Avenue & Rustenburg Road, Melville 2092.
Postal address: PO Box 61232, Marshalltown 2107.
Company Secretary T Liebenberg, Legal Information Services cc. Reg number
1993/022242/23. Address: Cnr Republic & Main Ave, Ferndale, Randburg. Tel +27
(11) 326-1330 Fax +27 (11) 787-5643. Email: Theunis@tli.co.za.
Transfer secretaries: Computershare Investor Services (Pty) Ltd., 70 Marshall
Street, Johannesburg 2001. PO Box 61051 Marshalltown 2107. Tel +27 (11) 370-
5000.
Sponsor: Nedbank Capital. Auditors: PricewaterhouseCoopers Inc. Bankers: FNB
Ltd. Attorneys: Tli Incorporated.
www.twp.co.za
Date: 05/05/2008 15:00:01 Produced by the JSE SENS Department.
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