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BAW BAWP
BAW
BAW / BAWP - Barloworld Limited - Reviewed interim results for the six
months ended 31 March 2008
Barloworld Limited (Registration number 1918/000095/06)
JSE codes: BAW and BAWP
ISIN codes: ZAE000026639 and ZAE000026647
Reviewed interim results for the six months ended 31 March 2008
Barloworld delivers strong performance for the half year
- Operating profit increases 30% to R1 279 million
- Headline earnings per share from continuing operations up 105% to 345
cents
- Headline earnings per share from continuing operations (excluding STC
on 2007 special dividend) up 50%
- Laboratory business unit disposed for R1 077 million (GBP 75 million)
- Coatings division listed and unbundled to shareholders
- Logistics acquisitions position business for international growth
Clive Thomson, CEO of Barloworld, said:
"The Barloworld group delivered strong growth in earnings for the half
year. This was driven by the Equipment division in southern Africa which
continued its growth trajectory given robust demand from the mining and
construction sectors. In Spain, housing construction slowed, however public
works activity has been affected to a lesser extent.
The Automotive division experienced difficult trading conditions in South
Africa and Scandinavia. Within Handling, the strong southern African
performance was partly offset by weak trading conditions in the US and
modest growth in the UK. The Logistics division performed well and will be
boosted by the recent acquisitions.
The strategic actions announced last year to refocus the group were
completed in the first quarter. The sale of the Laboratory business was
concluded in November and the shares in Freeworld Coatings were listed and
unbundled to shareholders in December 2007. Our BEE transaction will be
finalised in the short-term and we look forward to the benefits it will
bring to the company, our employees, and our empowerment partners.
The group`s operating performance is expected to remain strong, driven by
the Equipment business in southern Africa."
12 May 2008
Enquiries
Barloworld Limited: Sibani Mngomezulu, Tel +27 11 445 1000,
E-mail sibanim@barloworld.com
College Hill: Nicholas Williams, Tel +27 11 447 3030,
E-mail nickw@collegehillir.com
For background information visit www.barloworld.com
Chairman and Chief Executive`s Report
Strong operating performance
Following the completion of the strategic actions announced last year, the
trading performance of the group, reflected as continuing operations in the
income statement, comprises the results of the Equipment, Automotive,
Handling and Logistics divisions.
Revenue from continuing operations rose by 8%, while operating profit
increased by 30% to R1 279 million.
The Equipment division performed well with operating profits up by 41% to
R864 million. This was driven by strong revenue growth coupled with
improved margins in South Africa, Angola and Zambia. In Spain, housing
construction slowed, however public works activity was affected to a lesser
extent. Siberia continued with strong revenue and profit growth.
The Automotive retail business experienced difficult trading conditions in
South Africa where a sharp drop in new vehicle sales and lower margins
resulted in reduced profits. The turnaround in the Australian business was
cemented by a further rise in profits. Results from car rental operations
in southern Africa were satisfactory but trading conditions were difficult
in Scandinavia in the low volume winter months.
In the Handling division, good growth in southern Africa was tempered by
the slowdown in the US economy. The UK Handling business was flat, while
Belgium and Holland showed good growth.
The Logistics division continued to grow with profits rising by 71% in
southern Africa.
Headline earnings per share from continuing operations increased by 105% to
345.2 cents. The growth in earnings was driven by a strong operating
performance and the fact that last year`s earnings included a charge for
secondary tax on companies of R125 million on the special dividend paid in
April 2007.
The Board declared an interim dividend of 100 cents per share, which
represents the first interim dividend for the restructured group excluding
the disposed and unbundled operations.
Corporate activity
The strategic actions announced last year to reposition the group were
completed in the first quarter of this financial year. The sale of the
Laboratory business was concluded and the sale proceeds of R1 077 million
(GBP75 million) were received in November 2007.
The shares in Freeworld Coatings Limited (formerly the Coatings division of
Barloworld) were listed on the JSE Limited on 3 December 2007 and were
distributed as a dividend in specie to shareholders on 10 December 2007.
We were also pleased to announce the acquisition of the Dubai-based Swift
Group and Flynt International in Hong Kong, including a number of their
affiliates in the Far East, India, United Arab Emirates, Africa and
Germany. These businesses provide niche services and logistics activities
in their markets and will enhance the solutions offered by our growing
Logistics division. The acquisitions will be included in our results from
April 2008.
BEE and transformation
The process to finalise the details of the group`s broad-based black
economic empowerment transaction is largely complete and an announcement
in this regard will be made shortly. Whilst the transaction will lead to
approximately 10% empowerment at holding company level, it is anticipated
that it will result in an effective 25%+ empowerment of our South African
operations.
Participants in the transaction will include South African based employees,
current and future black management, community based partners, current
black non-executive directors, an education trust, as well as a number of
strategic equity and black business partners. In terms of IFRS, a
significant non-cash charge will be incurred on implementation of the
transaction in the second
half of the financial year.
Board and other management changes
Messrs Brandon Diamond and Andre Lamprecht retired from the board during
December 2007. Messrs Trevor Munday and Robert Tomkinson retired from the
Board during January 2008. The board appreciates the valuable contribution
they have made to the group, the board and board committees in various
capacities over the years.
Ms. Khanyisile Kweyama was appointed Group Executive - Global Human
Resources and Transformation in February 2008.
Outlook
Growth in the mining and construction sectors in southern Africa is
expected
to ensure continued high levels of demand for our Caterpillar equipment
products and solutions. The electricity shortage in South Africa is also
creating increased demand for our power generation products. The Siberian
equipment business is expected to grow strongly.
In Spain, the construction industry is slowing considerably. Housing
construction has been most affected, while the public works segment which
represents the majority of our revenues has been affected to a lesser
extent. Power systems demand remains strong and there are signs of
increased activity in Portugal.
Motor vehicle retail sales are expected to remain depressed in South Africa
following the recent increases in interest rates, while conditions in
Australia should remain favourable. Increased vehicle utilisation in
southern Africa
and the high season in Scandinavia are expected to produce improved profits
from car rental in the second half of the year.
In the Handling division we expect the strong contribution from the
southern African businesses to continue. We anticipate modest growth in
Europe, while trading conditions in the US are likely to remain very
difficult with the economy potentially entering a recession.
The Logistics division will be boosted by the International acquisitions
and continued organic growth in Africa.
We look forward to the finalisation of the Broad Based BEE transaction and
the benefits it will bring to the company, our employees in South Africa
and our empowerment partners.
The group`s operating performance is expected to remain strong, driven by
the Equipment business in southern Africa. Headline earnings per share
from continuing operations for the full year will not match the growth
achieved in the first half due to the expected non-cash charge for the BEE
transaction and the financial instrument gain earned in the second half of
last year from the marking to market of the PPC shares.
DB Ntsebeza CB Thomson
Chairman Chief Executive Officer
Group Financial Review
Revenue from continuing operations increased by 8% to R21.7 billion.
Revenue
in 2007 included R1.7 billion attributable to Freightliner and certain
other Handling businesses which were sold during the year.
Operating profit rose 30% driven by strong growth in Equipment southern
Africa.
Net finance costs increased by R78 million to R316 million, mainly due to
higher interest rates.
Taxation, before STC, increased by 51% to R289 million and the effective
tax rate, excluding STC, prior year taxation and taxation on exceptional
items was 29% (1H`07: 35%). The decrease was largely the result of the
geographical split of income and the 1% reduction in the South African
corporate tax rate this year.
STC of R44 million represents the charge arising from the final 2007
ordinary dividend paid in January 2008. The charge in 2007 included R125
million in respect of the special dividend of R5 per share paid in April
2007.
Headline earnings per share from continuing operations increased by 105%
to 345 cents (1H`07: 169 cents). The growth in earnings is largely due to
the improved operating performance and the absence of STC on the prior
year special dividend. Operating profit in 2007 included a once-off charge
of R60 million associated with the restructuring of the corporate offices.
In terms of accounting standards the results of the Cement, Coatings and
Scientific divisions are included in discontinued operations until the
dates of unbundling or disposal. The profit from discontinued operations
of R384 million in the six months to March 2008 includes R52 million
representing the earnings of Coatings and the Laboratory business up to
their unbundling or disposal and R332 million relating to the profit on the
disposal of the Laboratory business.
Operating cash flows before changes in working capital amounted to R2 585
million. These are not comparable to the prior period which includes cash
flows from Cement, Coatings and Scientific divisions before their
unbundling
or disposal.
Working capital increased by R1 640 million due to higher levels of
trading activity particularly in the Equipment division. Net cash applied
to investing activities of R1 300 million includes additions to property,
plant and equipment of R570 million, a further net investment in rental
assets and car hire vehicles of R1 694 million and proceeds of R1 077
million from
the disposal of the Laboratory business. A payment of R759 million was
made
to fund the actuarial deficit following the merger of our two UK pension
funds.
Total assets employed in the group increased to R35 663 million (September
2007: R30 655 million) mainly due to the weaker rand (R2 431 million) and
increased working capital.
Total interest-bearing borrowings of R11 494 million (September 2007: R9
066 million) represent a group debt to equity ratio of 84% (September 2007:
81%). The weaker Rand has resulted in an increase in net interest-bearing
borrowings at 31 March 2008 of R222 million. Debt of R308 million is
included as a result of consolidating NMI/DSM.
Our group segmental gearing ratios are all within their target ranges as
set
out below:
Total debt to Trading Leasing Car Total
equity (%) Rental Group
Target range 30 - 50 600 - 800 200 - 300
Ratio at
31 March 2008 46 642 208 84
Ratio at
30 September 2008 38 646 216 81
The ratio of short to long-term debt has risen to 56:44 (September 2007:
52:48), however the proposed BEE transaction includes the inflow of long-
term funds into the group and these proceeds will be used to reduce short-
term borrowings.
DG Wilson
Finance Director
Operational reviews
In the case of the leasing businesses, the operating profit is net of
interest paid. Income from associates, which includes our share of
earnings from joint ventures, is shown at the profit after taxation level.
Net operating assets comprise total assets less non-interest bearing
liabilities. Cash is excluded as well as current and deferred taxation
assets and liabilities. In the case of the leasing businesses, net assets
are reduced by interest-bearing liabilities.
Comparative numbers have been restated as per note 18.
EQUIPMENT
Revenue Operating Profit Net operating
assets
6 Year ended 6 Year
months months ended
ended ended
R million 31 31 30 Sep 31 31 30 31 Mar 30 Sep
Mar Mar 07 Mar Mar Sep 08 07
08 07 08 07 07
-
Southern 4 920 3 732 8 568 532 321 918 3 714 2 270
Africa *
- Europe 4 262 3 511 7 422 332 292 612 5 587 3 738
9 182 7 243 15 990 864 613 1 530 9 301 6 008
Share of
associate
income 11 6 36
* The Southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly
The Southern African Equipment business continued its growth trajectory,
driven by robust demand from the mining and construction sectors and
increasing power generation requirements. The sustained high level of
commodity prices and the infrastructure programmes in South Africa, Angola
and Zambia have underpinned the market for earthmoving equipment.
The global skills shortage and long equipment lead times remain the key
challenges in the industry and both issues are being addressed with the
assistance of Caterpillar.
In Iberia, revenues ended up on the prior period despite a weaker second
quarter due to the uncertainty created by the Spanish general election and
a slowdown in housing construction. The re-elected government has
announced its intention to accelerate public works to mitigate the impact
of the drop
off in the property sector. Our drive to gain market share across all
sectors continues and our power systems business remains strong,
particularly in marine engines. We are in the process of disposing of
our Mitsubishi lift truck business and net assets of R414 million (Euro 32
million) have been reclassified as held for sale.
Conditions in Portugal have improved and there are some important long
awaited infrastructure projects finally adjudicated. We also benefitted
from Portuguese contractors securing local equipment to work abroad,
although these export sales are at lower margins.
The results of the Siberian and Democratic Republic of Congo (DRC) joint
ventures are included in associate income. The Siberian venture is
experiencing rapid growth in both the earthmoving and energy sectors while
the DRC is trading well with strong future prospects.
The total customer order book has grown to R8.5 billion (Sept 07: R5.4
billion) and we have $1.6 billion (Sept 07: $1.2 billion) of orders placed
on Caterpillar, which together with equipment inventory on hand positions
us well to meet our future customer commitments.
AUTOMOTIVE
Revenue Operating Profit Net operating
/ (Loss) assets
6 months Year ended 6 Year
ended months ended
ended
R million 31 Mar 08 31 30 31 31 30 31 30
Mar Sep Mar Mar Sep Mar Sep
07 07 08 07 07 08 07
- Southern
Africa 826 664 1 209 172 194 325 3 193 2 820
- Europe 508 577 1 134 (33) 5 81 2 762 2 427
Car Rental 1 334 1 241 2 343 139 199 406 5 955 5 247
- Southern
Africa 5 410 4 916 9 948 72 96 184 1 962 1 363
-
Australia 1 403 1 134 2 448 33 23 48 1 031 743
Trading 6 813 6 050 12 396 105 119 232 2 993 2 106
Leasing
Southern
Africa* 451 364 701 33 34 76 362 346
8 598 7 655 15 440 277 352 714 9 310 7 699
Share of
associate
income 6 4 17
*Net operating assets after deducting interest-bearing borrowings
The benefits of our integrated motor vehicle usage solutions offering
contributed to a 12% increase in revenue, however strong competition in a
tough trading environment negatively impacted margins.
In Avis Rent a Car southern Africa, higher rental days and firmer rates
were offset by reduced utilisation and a lower used vehicle profit
contribution.
The prior period included a favourable depreciation adjustment of R22
million. Our focused strategic initiatives, which include a substantial
investment in infrastructure and people during the period, will positively
impact results
into the future.
Our Scandinavian car rental business, which operates both Avis and Budget
brands, posted a disappointing result for the period. However the seasonal
earnings pattern results in substantially all of the profits being earned
in the European summer. We are applying considerable focus and resources
to this business and we anticipate improved results into the future.
The southern African Motor Retail operations are bearing the brunt of a
slowdown in vehicle sales, after nine interest rate increases and the
introduction of the National Credit Act. Notwithstanding this, our well
structured dealership network is continuing to hold up well. Lower vehicle
sales have been partly compensated by a strong performance from our after-
sales business. The Subaru importation and distribution business suffered
from a weaker Rand. Our Australian Motor Retail business is strategically
well positioned and grew profits strongly.
Avis Fleet Services continues to secure large new contracts and this,
together with an improvement in interest rate margin, have benefited the
business. However weakness in the used vehicle market has negatively
impacted profitability.
Associate income includes our DaimlerChrysler, Phakisaworld and Sizwe BEE
joint ventures.
HANDLING
Revenue Operating Profit Net operating
/ (Loss) assets
6 Year ended 6 Year
months months ended
ended ended
R million 31 31 30 31 31 30 31 30
Mar Mar Sep Mar Mar Sep Mar Sep
08 07 07 08 07 07 08 07
- Southern
Africa 507 352 765 45 15 54 615 470
- Europe 1 574 1 307 2 690 26 30 55 830 687
- United
States 909 2 627 4 330 16 49 72 699 579
Trading 2 990 4 286 7 785 87 94 181 2 144 1 736
- Europe 71 81 164 11 (4) 6 56 107
Leasing* 71 81 164 11 (4) 6 56 107
3 061 4 367 7 949 98 90 187 2 200 1 843
*Net operating assets after deducting interest-bearing borrowings
The Southern African materials handling operation has been included under
the Handling segment as from the current year. Companies have been
reclassified accordingly.
From 1 October 2007, all the Hyster materials handling businesses are in
one division enabling greater focus and synergies.
Trading in southern Africa for the first half has been good, although
higher interest rates are starting to have some impact. Market share has
grown and
the order book is far stronger than last year. We are looking to dispose
of long-term rental assets of R354 million to a financial institution.
In Europe, the prior period included the Vacuum Technologies business sold
in April 2007. Belgium and Holland have seen good improvements in trading.
There has been some slowdown in the UK and while prospects remain positive,
customers appear reluctant to commit to new orders in the current economic
climate. Systems and procedures are being revamped to improve efficiency
and effectiveness.
In the United States, the prior period included the Freightliner and
Ditchwitch businesses sold in July 2007. The slowdown in the US economy
has had a direct impact on our materials handling operations resulting in
poor trading results and a weaker order book. The customer base is being
diversified away from construction related industries and additional
resources have been deployed to boost sales. As in the UK, systems and
procedures are being revamped to improve efficiency and effectiveness.
The UK leasing business continues to be wound down with the addition of an
alternative funder in the UK. The UK Ministry of Defence and some residual
customers will remain on our books.
LOGISTICS
Revenue Operating Profit Net operating
assets
6 Year ended 6 Year
months months ended
ended ended
R million 31 31 30 31 31 30 31 30
Mar Mar Sep Mar Mar Sep Mar Sep
08 07 07 08 07 07 08 07
Southern
Africa 631 520 1 088 41 24 76 519 400
Europe 186 181 371 5 12 19 54 67
817 701 1 459 46 36 95 573 467
Our African operations continued to show impressive organic growth and
operating profit increased by 71%. We also concluded significant new
business that will maintain our momentum. Following global trends, there
is a growing customer awareness of the benefits associated with our
integrated logistics business model in the region. This positive trend has
been reinforced by the reorganisation of our team and activities into
specialised industry sectors.
Our European operations experienced a slower start to the financial year.
The software business in the UK has been impacted by customers delaying
projects in the face of economic uncertainty. Our warehousing and
distribution operations in Iberia are being re-organised and re-focused,
including the implementation of an ERP system, to bring the business more
in line with our integrated logistics model.
With effect from 1 April 2008 we acquired Swift Freight in Dubai and Flynt
International in Hong Kong, plus a number of their associates in Germany,
India, China and the African continent for a total consideration of $83
million. This initiative will catapult Barloworld Logistics into the
global logistics arena, especially with regard to freight movements from
south-east Asia into Europe
and Africa.
CORPORATE AND OTHER
Revenue Operating Profit Net operating
/ (Loss) assets /
(liabilities)
6 Year ended 6 Year
months months ended
ended ended
R million 31 31 30 31 31 30 31 30
Mar Mar Sep Mar Mar Sep Mar Sep
08 07 07 08 07 07 08 07
Southern
Africa 33 35 53 2 (68) (111) 565 633
Europe - - - (8) (36) (57) (222) (807)
33 35 53 (6) (104) (168) 343 (174)
The downsizing of the corporate offices in southern Africa and UK is
complete and we are on track to realise R100 million in annualised cost
savings. The prior period includes redundancy costs of R60 million in
respect of this corporate restructuring. The current period includes a
benefit of R27 million relating to a reduction in the residual liability to
share option holders following the unbundling of Pretoria Portland Cement
Limited (PPC), as a consequence of movements in the PPC share price.
Net operating assets in southern Africa include R233 million relating to
PPC shares held against the option liability. In Europe, the reduction in
net operating liabilities is mainly due to a payment in December 2007 of
R759 million (GBP55 million) to eliminate the actuarial deficit following
the merger of our two UK pension funds.
CONDENSED CONSOLIDATED INCOME STATEMENT
Six months ended Year ended
31 March 31 March 2007 % 30 September
2008 Reviewed Change 2007 Audited
Reviewed
R million Notes Reclassified* Reclassified**
Continuing
operations
Revenue 21 691 20 001 8 40 891
Operating
Profit 3 1 279 987 30 2 358
Fair value
adjustments
on financial
instruments
4 69 (3) 295
Finance
costs 5 (395) (296) (701)
Income from
investments 79 58 166
Profit
before
exceptional
items 1 032 746 38 2 118
Exceptional
items 6 (59) (193) (160)
Profit
before
taxation 973 553 1 958
Taxation 7 (289) (191) (549)
Secondary
taxation on
companies 7 (44) (150) (148)
Profit after
taxation
640 212 1 261
Income from
associates
and joint
ventures 18 10 53
Net profit
from
continued
operations 658 222 1 314
Discontinued
operations
Profit from
discontinued
operations 11 384 743 1 245
Net profit
for the
period 1 042 965 2 559
Attributable
to:
Minority
shareholders 8 179 289
Barloworld
Limited
shareholders 1 034 786 2 270
1 042 965 2 559
Earnings per
share
(cents)
- basic 506.4 389.7 1 120.0
- diluted 498.6 384.4 1 099.6
Earnings per
share from
continuing
operations
(cents)
- basic 318.8 108.6 643.4
- diluted 313.9 107.1 631.7
Earnings per
share from
discontinued
operations
(cents)
- basic 187.6 281.1 476.6
- diluted 184.7 277.3 467.9
* Reclassified for the treatment of the Cement and Coatings segments as
discontinued operations - refer note 18
** Reclassified for the treatment of the Coatings segment as a discontinued
operation - refer note 18
Refer note 2 for details of headline earnings per share calculation
CONDENSED CONSOLIDATED BALANCE SHEET
31 March 31 March 30 September
2008 2008 2007
R million Notes Reviewed Reviewed Audited
ASSETS
Non current
assets 12 986 13 755 12 019
Property,
plant and
equipment 7 383 8 242 6 847
Goodwill 2 246 2 522 2 046
Intangible
assets 196 305 274
Investments
in
associates
and joint
ventures 9 1 107 875 928
Finance
lease
receivables 674 623 619
Long-term
financial
assets 10 718 615 686
Deferred
taxation
assets 662 573 619
Current
assets 22 677 19 956 18 636
Vehicle
rental fleet 4 447 3 504 3 902
Inventories 7 625 5 368 5 869
Trade and
other
receivables 7 828 6 661 6 185
Taxation 3 31 32
Cash and
cash
equivalents 1 479 1 056 1 201
Assets
classified
as held for
sale 11 1 295 3 336 1 447
Total Assets
35 663 33 711 30 655
EQUITY AND
LIABILITIES
Capital and
Reserves
Share
Capital and
Premium 236 441 223
Other
reserves 4 431 3 117 2 584
Retained
income 8 802 8 711 8 334
Interest of
shareholders
of
Barloworld
Limited 13 469 12 269 11 141
Minority
interest 201 581 80
Interest of
all
shareholders 8 13 670 12 850 11 221
Non-current
liabilities 6 730 7 410 6 638
Interest
bearing 5 081 4 989 4 379
Deferred
taxation
liabilities 703 746 610
Provisions 445 472 344
Other non-
interest
bearing 501 1 203 1 305
Current
liabilities 15 263 13 451 12 796
Trade and
other
payables 7 774 5 965 6 854
Provisions 714 655 600
Taxation 322 512 445
Amounts due
to bankers
and short-
term loans 6 413 4 739 4 687
Shareholders
for dividend - 1 015
Liabilities
directly
associated
with assets
classified
as held for
sale 11 40 565 210
Total Equity
&
Liabilities 35 663 33 711 30 655
CONDENSED CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSE
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
Exchange gains /
(losses) on
translation of
foreign operations 1 842 (228) (229)
Translation
reserves realised
on the disposal of
foreign
subsidiaries (200) - (284)
Gain/(loss) on
cash flow hedges 251 (160) (163)
Deferred taxation
on cash flow
hedges (46) 45 39
Loss on
revaluation of
available for sale
investments - - (22)
Other reserve
movements - 1 -
Net actuarial
losses on post-
retirement benefit
obligations - (3) (54)
Net income/(loss)
recognised
directly in equity 1 847 (345) (713)
Profit for the
period 1 042 965 2 559
Total recognised
income and expense
for the year 2 889 620 1 846
Attributable to:
Minority
shareholders 12 176 289
Barloworld Limited
shareholders 2 877 444 1 557
2 889 620 1 846
GROUP SALIENT FEATURES
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
Reviewed Reviewed Audited
Number of ordinary
shares in issue,
net of buyback
(000) 204 561 203 345 203 843
Net asset value
per share
including
investments at
fair value (cents) 6 811 6 194 5 714
Total liabilities
to total
shareholders`
funds (%) 155.7 156.5 167.8
Total borrowings
to total
shareholders`
funds (%)
- Trading segment* 46.1 42.4 38.2
- Total group 84.1 75.9 80.8
Interest cover
(times)
- Trading segment* 5.4 4.8 5.3
- Total group -
continuing
operations 3.2 3.0 3.3
* Trading segment includes dealership businesses, but excludes leasing and
car rental
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Six months ended Year ended
31 March 31 March 30
2008 2008 September
R million Notes Reviewed Reviewed 2007
Audited
Cash flow from
operating activities
Operating cash flows
before movements in
working capital 2 585 3 269 6 370
Increase in working
capital (1 640) (1 441) (531)
Cash generated from
operations 945 1 828 5 839
Realised fair value
adjustments on
financial
investments (18) (22) (16)
Finance costs and
investment income (321) (234) (523)
Taxation paid (420) (1 006) (1 412)
Cash flow from
operations 186 566 3 888
Dividends paid
(including minority
shareholders) (414) (1 197) (2 629)
Net cash from
operating activities (228) (631) 1 259
Net cash (applied
to)/generated from
investing activities (1 300) 296 (880)
Acquisition of
subsidiaries,
investments and
intangibles 12 (339) (113) (349)
Acquisition of
property, plant and
equipment (570) (772) (1 485)
Net investments in
rental assets 13 (838) (511) (1 310)
Net investments in
car hire vehicles 13 (856) (267) (927)
Increase/(reduction)
in instalment sale
and leasing
receivables 53 (14) (46)
Proceeds on disposal
of subsidiaries,
investments and
property, plant and
equipment and sale
of leasing assets 1 250 1 973 3 237
Net cash
(outflow)/inflow
before financing
activities (1 528) (335) 379
Net cash from/(used
in) financing
activities 1 738 (654) (988)
Ordinary shares
issued 13 114 139
Funding of pension
deficit on merger of
UK schemes (759) - -
Increase/(decrease)
in interest-bearing
liabilities 2 484 (768) (1 127)
Net
increase/(decrease)
in cash and cash
equivalents 210 (989) (609)
Cash and cash
equivalents at
beginning of period 1 201 2 134 2 134
Effect of foreign
exchange rate
movements 154 (11) (6)
Effect of unbundling
Pretoria Portland
Cement on cash
balance - - (318)
Effect of unbundling
Freeworld Coatings
on cash balance (86) - -
Effect of cash
included in assets
classified as held
for sale - (78) -
Cash and cash
equivalents at end
of period 1 479 1 056 1 201
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
1. BASIS OF PREPARATION
The condensed interim consolidated financial statements have
been prepared in accordance with International Accounting Standard
(IAS) 34 Interim Financial Reporting. The accounting policies and
methods of computation used are consistent with those used for the
group`s 2007 annual financial statements (which were prepared in
accordance with International Financial Reporting Standards),
except for the adoption of the following amended or new standards
and interpretations:
- IFRS 7 Financial Instruments: Disclosures and related
amendments to IAS 1 Presentation of Financial Statements
- IFRIC 13 Customer Loyalty Programmes
- IAS 32 (Revised) Financial Instruments: Presentation and
related amendments to IAS 1 Presentation of Financial
Statements (Capital disclosures)
The impact on the condensed interim consolidated financial
statements of adoption of these standards and interpretations was
not significant. Comparative numbers have been reclassified as per
note 18.
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
Reviewed Reviewed Audited
2. RECONCILIATION OF NET PROFIT TO HEADLINE EARNINGS
Group
Net profit attributable
to Barloworld
shareholders 1 034 786 2 270
Adjusted for the
following:
Profit/(loss) on
disposal of
discontinued operations
(IFRS 5) (173) - 63
Loss on disposal of
subsidiaries (IAS 27) - - 25
Realisation of
translation reserve on
disposal of offshore
subsidiaries (IAS 21) (200) - (197)
Profit on disposal of
properties (IAS 16) (3) (3) (45)
Impairment of goodwill
(IFRS 3) 33 106 169
Impairment of
investments in
associates (IAS 28) and
joint ventures (IAS 31) 29 125 149
Impairment of plant and
equipment (IAS 16) - - 45
Profit on sale of plant
and equipment excluding
rental assets (IAS 16) (5) (4) (7)
Gross remeasurements
excluded from headline
earnings (319) 224 202
Total taxation effects
of remeasurements 41 (70) (82)
Interest of outside
shareholders in
remeasurements - 1 4
Net remeasurements
excluded from headline
earnings (278) 155 124
Headline earnings 756 941 2 394
Continuing operations
Profit from continuing
operations 658 222 1 314
Minority shareholders`
interest in net profit
from continuing
operations (7) (3) (10)
Profit from continuing
operations attributable
to Barloworld Limited 651 219 1 304
Adjusted for the
following items in
continuing operations:
Loss on disposal of
subsidiaries (IAS 27) - - 36
Realisation of
translation reserve on
disposal of offshore
subsidiaries (IAS 21) - - (197)
Profit on disposal of
properties (IAS 16) (3) (2) (42)
Impairment of goodwill
(IFRS 3) 33 70 169
Impairment of
investments in
associates (IAS 28) and
joint ventures (IAS 31) 29 125 149
Impairment of plant and
equipment (IAS 16) - - 45
Profit on sale of plant
and equipment excluding
rental assets (IAS 16) (5) (2) (6)
Gross remeasurements
excluded from headline
earnings from
continuing operations 54 191 154
Total taxation effect
of remeasurements - (70) (79)
Net remeasurements
excluded from headline
earnings from
continuing operations 54 121 75
Headline earnings from
continuing operations 705 340 1 379
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 % 2007
R million Reviewed Reviewed Change Audited
2. RECONCILIATION OF NET PROFIT TO HEADLINE EARNINGS (continued)
Discontinued operations
Profit from discontinued
operations 384 743 1 245
Minority shareholders
interest in net profit
from discontinued
operations (1) (176) (279)
Profit from discontinued
operations attributable
to Barloworld Limited 383 567 966
Adjusted for the
following items in
discontinued operations:
Profit/(loss) on
disposal of discontinued
operations (IFRS 5) (173) - 63
Realisation of
translation reserve on
disposal of offshore
subsidiaries (IAS 21) (200)
Profit on derecognition
of subsidiary (IAS 27) (11)
Profit on disposal of
properties (IAS 16) (1) (3)
Impairment of goodwill
(IFRS 3) 36
Profit on sale of plant
and equipment excluding
rental assets (IAS 16) (2) (1)
Gross remeasurements
excluded from headline
earnings from
discontinued operations (373) 33 48
Total taxation effects
of remeasurements 41 (3)
Interest of outside
shareholders in
remeasurements 1 4
Net remeasurements
excluded from headline
earnings from
discontinued operations (332) 34 49
Headline earnings from
discontinued operations 51 601 1 015
Weighted average number
of ordinary shares in
issue during the period
(000)
- basic 204 190 201 686 202 673
- diluted 207 372 204 490 206 444
Headline earnings per
share (cents)
- basic 370.2 466.6 1 181.2
- diluted 364.6 460.2 1 159.6
Headline earnings per
share from continuing
operations (cents)
- basic 345.2 168.6 105 680.4
- diluted 340.0 166.3 104 668.0
Headline earnings per
share from discontinued
operations (cents)
- basic 25.0 298.0 500.8
- diluted 24.6 293.9 491.6
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
3. OPERATING PROFIT
Included in operating
profit from continuing
operations are:
- Cost of sales
(including allocation
of depreciation) 16 416 15 239 30 763
- Depreciation 1 032 871 1 719
- (Loss)/profit on sale
of rental assets (9) 32 37
- Profit on sale of
other plant and
equipment 5 2 6
4. FAIR VALUE ADJUSTMENTS ON FINANCIAL INSTRUMENTS
Gains/(losses) arising
from:
Investment in Pretoria
Portland Cement Limited (45) 312
Forward exchange
contracts and other
financial instruments 75 (2) 36
Translation of foreign
currency monetary items 39 (1) (53)
69 (3) 295
5. FINANCE COSTS
Total finance cost (472) (369) (932)
Leasing interest
classified as cost of
sales 77 73 231
(395) (296) (701)
reclassified the prior
periods as per note 18
6. EXCEPTIONAL ITEMS
Profit/(loss) on
disposal of properties,
investments and
subsidiaries 3 2 6
Realisation of
translation reserve on
disposal of foreign
subsidiaries 197
Impairment of goodwill (33) (70) (169)
Impairment of
investments (29) (125) (149)
Impairment of property,
plant and equipment (45)
Gross exceptional
losses (59) (193) (160)
Taxation on exceptional
items 70 79
Net exceptional losses
- continuing operations (59) (123) (81)
- discontinued
operations (net of
taxation and
minorities) 332 (36) 10
Net exceptional
profits/(losses) 273 (159) (71)
The current year expense relates
mainly to the impairment charge on
goodwill carried relating to Avis
Scandinavia and on Investments in
associates and joint ventures
7. TAXATION
Taxation per income
statement (289) (191) (549)
Prior year taxation (2) 2 17
Taxation on exceptional
items (70) (79)
Taxation on profit
before STC, prior year
taxation and
exceptional items for
continuing operations (291) (259) (611)
STC on normal dividends
paid (44) (25) (23)
STC on special dividend (125) (125)
Secondary taxation on
companies for
continuing operations (44) (150) (148)
Profit before
exceptional items 1 032 746 2 118
Dividends received (14) (3) (2)
Profit before
exceptional items and
dividends received for
continuing operations 1 018 743 2 116
Effective taxation rate excluding
exceptional items, prior year taxation
and dividends received for continuing
operations (%)
- excluding STC 28.6% 34.9% 28.9%
- including STC 32.9% 55.0% 35.9%
8. INTEREST OF ALL SHAREHOLDERS
Balance at the
beginning of the period 11 221 14 360 14 360
Net income/(loss)
recognised directly in
equity 1 847 (345) (713)
Net profit for the
period 1 042 965 2 559
Reclassifications and
other reserve movements 30 (31) 9
Dividends/capital
distribution on
ordinary shares (414) (2 213) (2 629)
Effect of coatings
unbundling (69)
Effect of cement
unbundling (2 504)
Shares issued in
current period 13 114 139
Interest of
shareholders at the end
of the period 13 670 12 850 11 221
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Six months ended Year ended
31 March 2008 31 March 2007 30 September 2007
Market Book Market Book Market Book
Value/ Value Value/ Value Value/ Value
Directors` Directors` Directors`
valuation Valuation Valuation
R million Reviewed Reviewed Audited
9. INVESTMENT IN ASSOCIATES AND JOINT VENTURES
Joint
ventures 689 226 497 252 696 286
Unlisted
associates 197 196 294 214 307 212
886 422 791 466 1 003 498
Loans and
advances 685 409 430
1 107 875 928
10. LONG-TERM FINANCIAL ASSETS
Listed
investments* 233 233 10 10 332 332
Unlisted
investments 28 28 35 35 28 28
Investment
in Portland
Holdings
Limited 260 260
261 261 305 305 360 360
Other long-
term
financial
assets 457 310 326
718 615 686
* Includes PPC shares held amounting to R233 million (September 2007: R332
million and March 2007: Rnil) for the commitment to deliver PPC shares to
option holders following the unbundling of PPC.
No longer applicable due to unbundling of PPC. Previously held as an
investment.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
11. DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD FOR SALE
The Coatings segment was unbundled on 10 December 2007 and the
Scientific laboratory business was sold in November 2007. The
discontinued operations` trading results at March 2008 represent
Coatings and Scientific, while the comparatives also include the
Cement and Steel Tube segments. The profit or loss on disposal of
discontinued operations represents the result of the Scientific and
Steel Tube disposals current and prior year respectively.
Results from discontinued operations
are as follows:
Revenue 710 5 605 9 368
Operating profit 92 1 282 2 013
Fair value
adjustments on
financial
instruments (1) (9) 5
Finance costs (15) (69) (104)
Income from
investments 4 55 77
Profit before
exceptional items 80 1 259 1 991
Exceptional items (38) 14
Profit before
taxation 80 1 221 2 005
Taxation (33) (488) (721)
Profit after
taxation 47 733 1 284
Income from
associates and joint
ventures 5 10 21
Net profit of
discontinued
operation before
profit/(loss) on
disposal 52 743 1 305
Profit/(loss) on
disposal of
discontinued
operations
(including
realisation of
translation reserve) 373 (63)
Taxation effect on
disposal (41) 3
Net profit/(loss) on
disposal of
discontinued
operations after
taxation 332 (60)
Profit from
discontinued
operations per
income statement 384 743 1 245
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
11. DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD FOR SALE
(continued)
Segemental analysis of discontinued operations:
REVENUE
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
Scientific 193 934 1 700
Cement 2 588 4 016
Steel Tube 348 348
Coatings 517 1 735 3 304
Total discontinued
operations 710 5 605 9 368
11. DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD FOR SALE
(continued)
Segemental analysis of discontinued operations:
OPERATING PROFIT/(LOSS)
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
Scientific 14 74 104
Cement 987 1 527
Steel Tube 38 32
Coatings 78 183 350
Total discontinued
operations 92 1 282 2 013
11. DISCONTINUED OPERATIONS AND ASSETS CLASSIFIED AS HELD FOR SALE
(continued)
Segemental analysis of discontinued operations:
NET OPERATING ASSETS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
Scientific - 1 185 762
Cement 2 933
Steel Tube 130
Coatings 1 151 817
Total discontinued
operations 5 399 1 579
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
Reviewed Reviewed Audited
The cash flows from the discontinued
operations are as follows:
Cash flows from
operating activities (440) (530) 338
Cash flows from
investing activities 898 (444) 243
Cash flows from
financing activities (492) (260) (800)
The major classes of assets and
liabilities comprising the disposal
group and other assets classified as
held for sale are as follows:
Property, plant and
equipment,
intangibles and
vehicle rental fleet 1 165 1 338 674
Goodwill 260
Inventories 114 1 122 231
Trade and other
current receivables 842 260
Deferred tax assets 66 9
Cash and cash
equivalents 4
Finance lease
receivables 16 13
Assets of disposal
group held for sale
before impairment
loss 1 295 3 372 1 447
Impairment loss on
write-down to fair
value less costs to
sell (36)
Assets classified as
held for sale 1 295 3 336 1 447
Interest-bearing
liabilities (31) (36)
Trade and other
payables (40) (534) (174)
Total liabilities
associated with
assets classified as
held for sale (40) (565) (210)
Net assets
classified as held
for sale 1 255 2 771 1 237
Per business
segment:
Continuing
operations
Equipment1 450 28 30
Automotive 290 172 271
Handling2 515 982 118
Logistics 5
Corporate and other 279 81
Total continuing
operations 1 255 1 461 505
Discontinued
operations
Scientific 1 180 732
Steel Tube 130
Total group 1 255 2 771 1 237
1. Net assets relating to the Lift Truck business in Iberia with a carrying
value of R414 million are anticipated to be sold within the near future.
2. Represents the anticipated sale of the Handling SA leasing book with a
carrying value of R354 million and a portion of the offshore Leasing fleet
with a carrying value of R161 million.
The remaining balance of assets held for sale represents rental assets that
become available for sale on an ongoing basis as they are removed from
rental fleets.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Six months ended Year ended
31 March 31 March 30 September
2008 2007 2007
R million Reviewed Reviewed Audited
12. ACQUISITION OF SUBSIDIARIES, INVESTMENTS AND INTANGIBLES
Inventories acquired 336
Receivables acquired 242
Payables, taxation and
deferred taxation
acquired (310)
Goodwill and intangibles
acquired 135
Borrowings net of cash (256)
Property, plant and
equipment and other non-
current assets 254
Total net assets
acquired 263
Less: Existing share of
net assets of joint
venture before
acquisition and minority
shareholders` interest 234
Net assets acquired 29
Goodwill arising on
acquisitions 4
Total purchase
consideration 33
Less: non-cash purchase
consideration 33
Net cash cost of
subsidiary acquired 0
Investments and
intangibles acquired 339 113 349
Cash amounts paid to
acquire subsidiaries and
investments 339 113 349
The group exchanged its 65% interest in Garden City Motors (GCM)
for additional shares in the NMI Durban South Motors business (NMI)
effective 1 March 2008. The group`s shareholding in NMI increased
from 50% to 51.18% as a result of this transaction. Goodwill
arising on the acquisition of NMI amounting to R4 million is
attributable to gaining control of the business.
The business was previously jointly controlled and therefore equity
accounted in the group results up to 29 February 2008. The NMI
result has been fully consolidated in the group results effective 1
March 2008.
The net profit from NMI since date of acquisition was R5 million.
The disposal of GCM to NMI had no profit or loss effect for the
group. If the above transaction had taken place at the beginning of
the current period, the group would have reported total revenue of
R22 912 million and net profit of R1 050 million for the six months
to March 2008.
13. NET INVESTMENT IN RENTAL ASSETS AND CAR HIRE VEHICLES
Rental assets 838 511 1 310
Additions 1 318 994 2 314
Proceeds on disposals (480) (483) (1 004)
Car hire vehicles 856 267 927
Additions 2 486 1 720 3 741
Proceeds on disposals (1 630) (1 453) (2 814)
14. COMMITMENTS
Capital commitments to
be incurred 1 925 3 002 2 291
Contracted 1 202 1 404 1 908
Approved but not yet
contracted 723 1 598 383
Operating lease
commitments 2 109 1 868 1 939
Share of buy-back and
repurchase commitments
of joint ventures 5 4
Capital expenditure will be financed by funds generated by the
business, existing cash resources and borrowing facilities
available to the group.
15. CONTINGENT LIABILITIES
Guarantees, claims and
other contingent
liabilities 1 234 671 989
Litigation, current or pending, is not considered likely to have a
material adverse effect on the group.
Recourse debtors, buy-
back and repurchase
commitments* 507 1 158 449
*The related assets are estimated to have a value of at least equal
to the commitment.
The group has given guarantees to the purchaser of the coatings
Australian business relating to environmental claims. The
guarantees are for a maximum period of eight years and are limited
to the sales price received for the business. Freeworld Coatings
Limited is responsible for the first A$5 million of any claim in
terms of the unbundling agreement.
Warranties and guarantees have been given as a consequence of the
various disposals completed during the prior year. None are
expected to have a material impact on the financial results of the
group.
There are no material contingent liabilities in joint venture
companies.
16. RELATED PARTY TRANSACTIONS
Other than the impact of the disposal and unbundling of businesses
per note 11, there has been no significant change in related party
relationships since the previous year.
Other than in the normal course of business, there has been no
significant transactions during the six months with associate
companies, joint ventures and other related parties.
17. SUBSEQUENT EVENTS
Agreements for the acquisition by the group`s Logistics business of
the Hong Kong based Flynt group as well as the Dubai-based Swift
Group and its affiliates in the Far East, India, United Arab
Emirates (UAE), Africa and Germany have recently been concluded.
The effective date of the acquisitions are 1 April 2008 at a cost
of US$83 million, subject to final adjustment based on profit and
other warranties to be achieved. The allocation of the purchase
price to the acquired assets, liabilities and contingent
liabilities is still in the process of being determined.
The group is currently in the process of finalising the details of
a broad-based black economic empowerment transaction and an
announcement in this regard will be made shortly. Whilst the
transaction will lead to approximately 10% empowerment at holding
company level, it is anticipated that it will result in an
effective 25%+ empowerment of our South African operations.
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
18. COMPARATIVE INFORMATION
The March 2007 comparative information has been reclassified for the
treatment of the Cement and Coatings segments as discontinued
operations due to their unbundlings in July 2007 and December 2007
respectively. The September 2007 comparatives have similarly been
reclassified for the treatment of the Coatings segment as a
discontinued operation. Both periods have also been reclassified for
the treatment of inter group interest received from Leasing
operations, which from the current year has been offset against
finance costs rather than as an addition to income from investments.
R million Previously Reclassi- Reclassi- Restated
stated fication of fication
Discontinued of inter
operations group
interest
from
Leasing
operations
The aggregate effect of the above changes on the annual
financial statements for the period ended 31 March 2007:
Income statement
Revenue 24 324 (4 323) 20 001
Operating profit 2 157 (1 170) 987
Fair value (12) 9 (3)
adjustments on
financial
instruments
Finance costs (401) 57 48 (296)
Income from 160 (54) (48) 58
investments
Profit before 1 904 (1 158) 746
exceptional items
Exceptional items (190) (3) (193)
Profit before 1 714 (1 161) 553
taxation
Taxation (797) 456 (341)
Profit after 917 (705) 212
taxation
Income from 20 (10) 10
associates and joint
ventures
Net profit from 937 (715) 222
continuing
operations
Profit from 28 715 743
discontinued
operations
Net profit for the 965 965
period
Attributable to:
Minority
shareholders 179 179
Barloworld Limited 786 786
shareholders
965 965
Earnings per share 389.7 389.7
(cents) - basic
Earnings per share 384.4 384.4
(cents) - diluted
Earnings per share
from continuing
operations (cents)
Earnings per share 375.8 108.6
(cents) - basic (267.2)
Earnings per share 370.7 107.1
(cents) - diluted (263.6)
Earnings per share
from discontinued
operations (cents)
Earnings per share 13.9 281.1
(cents) - basic 267.2
Earnings per share 13.7 277.3
(cents) - diluted 263.6
The aggregate effect of the above changes on the annual financial
statements for the year ended 30 September 2007:
Income statement
Revenue 43 238 (2 347) 40 891
Operating profit 2 741 (383) 2 358
Fair value 287 8 295
adjustments on
financial
instruments
Finance costs (816) 18 97 (701)
Income from 272 (9) (97) 166
investments
Profit before 2 484 (366) 2 118
exceptional items
Exceptional items (160) (160)
Profit before 2 324 (366) 1 958
taxation
Taxation (809) 112 (697)
Profit after 1 515 (254) 1 261
taxation
Income from 68 (15) 53
associates and joint
ventures
Net profit from 1 583 (269) 1 314
continuing
operations
Profit from 976 269 1 245
discontinued
operations
Net profit for the 2 559 2 559
period
Attributable to:
Minority
shareholders 289 289
Barloworld Limited 2 270 2 270
shareholders
2 559 2 559
Earnings per share 1120.0
(cents) - basic 1 120.0
Earnings per share 1099.6
(cents) - diluted 1 099.6
Earnings per share
from continuing
operations (cents)
Earnings per share 773.7 643.4
(cents) - basic (130.3)
Earnings per share 759.6 631.7
(cents) - diluted (127.9)
Earnings per share
from discontinued
operations (cents)
Earnings per share 346.3 476.6
(cents) - basic 130.3
Earnings per share 340.0 467.9
(cents) - diluted 127.9
The restatements have not affected the balance sheets for 31 March
and 30 September 2007.
The restatements have not impacted on cash flows.
19. AUDITOR`S REVIEW
Deloitte & Touche has reviewed these interim results. The
unmodified review opinion is available for inspection at the
company`s registered office.
SEGMENTAL SUMMARY
Revenue
6 months ended Year
ended
R million 31 Mar 08 31 Mar 07 30 Sep 07
Reviewed Reviewed Audited
Equipment 9 182 7 243 15 990
Automotive 8 598 7 655 15 440
Handling 3 061 4 367 7 949
Logistics 817 701 1 459
Corporate and other 33 35 53
Total continuing operations 21 691 20 001 40 891
Made up geographically as
follows:
Southern Africa 12 778 10 583 22 332
Europe 6 601 5 657 11 781
United States 909 2 627 4 330
Australia & Asia 1 403 1 134 2 448
Total continuing operations 21 691 20 001 40 891
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
SEGMENTAL SUMMARY (continued)
Operating profit/ (loss)
6 months ended Year ended
R million 31 Mar 08 31 Mar 07 30 Sep 07
Reviewed Reviewed Audited
Equipment 864 613 1 530
Automotive 277 352 714
Handling 98 90 187
Logistics 46 36 95
Corporate and other ( 6) ( 104) ( 168)
Total continuing 1 279 987 2 358
operations
Made up geographically
as follows:
Southern Africa 897 616 1 522
Europe 333 299 716
United States 16 49 72
Australia & Asia 33 23 48
Total continuing 1 279 987 2 358
operations
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
SEGMENTAL SUMMARY (continued)
Fair value adjustments on financial
instruments
6 months ended Year ended
R million 31 Mar 08 31 Mar 07 30 Sep 07
Reviewed Reviewed Audited
Equipment 103 ( 5) ( 5)
Automotive 8 ( 2) ( 7)
Handling ( 2) 7 (4)
Corporate and other ( 40) ( 3) 311
Total continuing 69 ( 3) 295
operations
Made up geographically
as follows:
Southern Africa 70 ( 3) 297
Europe ( 1) ( 2)
-
Total continuing 69 ( 3) 295
operations
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
SEGMENTAL SUMMARY (continued)
Segment result: Operating profit /
(loss) including fair value
adjustments
6 months ended Year ended
R million 31 Mar 08 31 Mar 07 30 Sep 07
Reviewed Reviewed Audited
Equipment 967 608 1 525
Automotive 285 350 707
Handling 96 97 183
Logistics 46 36 95
Corporate and other ( 46) ( 107) 143
Total continuing 1 348 984 2 653
operations
Made up geographically
as follows:
Southern Africa 967 613 1 819
Europe 332 299 714
United States 16 49 72
Australia & Asia 33 23 48
Total continuing 1 348 984 2 653
operations
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
SEGMENTAL SUMMARY (continued)
Operating margin (%)
6 months ended Year ended
R million 31 Mar 08 31 Mar 07 30 Sep 07
Reviewed Reviewed Audited
Equipment 9.4% 8.5% 9.6%
Automotive 3.2% 4.6% 4.6%
Handling 3.2% 2.1% 2.4%
Logistics 5.6% 5.2% 6.5%
Corporate and other
Total continuing 5.9% 4.9% 5.8%
operations
Made up geographically
as follows:
Southern Africa 7.0% 5.8% 6.8%
Europe 5.0% 5.3% 6.1%
United States 1.8% 1.9% 1.7%
Australia & Asia 2.4% 2.0% 2.0%
Total continuing 5.9% 4.9% 5.8%
operations
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
SEGMENTAL SUMMARY (continued)
Net operating assets /
(liabilities)
R million 31 Mar 08 30 Sep 07
Reviewed Audited
Equipment 9 301 6 008
Automotive 9 310 7 699
Handling 2 200 1 843
Logistics 573 467
Corporate and other 343 ( 174)
Total continuing 21 727 15 843
operations
Made up geographically as
follows:
Southern Africa 10 930 8 302
Europe 9 067 6 219
United States 699 579
Australia & Asia 1 031 743
Total continuing 21 727 15 843
operations
The southern African materials handling operation has been included under
the Handling segment as from the current year. Comparatives have been
reclassified accordingly.
Distribution declaration for the six months ended 31 March 2008: Dividend
Number 159
Notice is hereby given that the following dividend has been declared in
respect of the six months ended 31 March 2008: Number 159 (interim
dividend) of 100 cents per ordinary share
In compliance with the requirements of the JSE Limited, the following dates
are applicable.
Last day to trade cum dividend Friday, 30 May 2008
First trading day ex dividend Monday, 02 June 2008
Record date Friday, 06 June 2008
Payment date Monday, 09 June 2008
Share certificates may not be dematerialised or rematerialised between
Monday, 2 June 2008 and Friday, 06 June 2008, both days inclusive.
On behalf of the board
S Mngomezulu
Secretary
Directors
Independent: DB Ntsebeza (Chairman), SAM Baqwa, AGK Hamilton*, MJ Levett, S
Mkhabela, TH Nyasulu, G Rodriguez de Castro de los Rios+, SB Pfeiffer
Executive: CB Thomson (Chief Executive), PJ Blackbeard, M Laubscher, OI
Shongwe, PM Surgey, DG Wilson
*British American +Spanish
Corporate Information
Registered office and business Registrars - United Kingdom
address Equiniti Limited
Barloworld Limited Aspect House, Spencer Road
180 Katherine Street Lancing, West Sussex
PO Box 782248 BN99 6DA, England
Sandton Tel: +44 190 383 3381
2146, South Africa
Tel: +27 11 445 1000
Email: invest @barloworld.com
Transfer secretaries - South Transfer secretaries -
Africa Namibia
Link Market Services South Transfer Secretaries
Africa (Proprietary) Limited
(Proprietary) Limited (Registration number
(Registration number 93/713)
2000/007239/07) Shop 8, Kaiser Krone Centre
11 Diagonal Street Post Street Mall
Johannesburg, 2001 Windhoek, Namibia
(PO Box 4844, Johannesburg) (PO Box 2401, Windhoek,
Tel: +27 11 630 0000 Namibia)
Tel: +264 61 227 647
About Barloworld
Barloworld is a distributor of leading international brands providing
integrated rental, fleet management, product support and logistics
solutions. The core divisions of the group comprise Equipment (earthmoving
and power systems), Automotive (car rental, fleet services and motor
trading), Handling (forklift truck distribution and fleet management) and
Logistics (logistics management and supply chain optimisation).
We offer flexible, value adding, integrated business solutions to our
customers backed by leading global brands.
The brands we represent on behalf of our principals include Caterpillar,
Hyster, Avis, Mercedes, Chrysler, BMW, General Motors, Ford, Toyota,
Volkswagen, Audi, Nissan, Volvo and others.
Barloworld has a proven track record of effectively managing long-term
relationships with global principals and customers. We have an ability to
develop and grow businesses in multiple geographies including challenging
territories with high growth prospects. One of our core competencies is an
ability to leverage systems and best practices across our chosen business
segments. As an organisation we are committed to play a leading role in
empowerment and transformation.
The company was founded in 1902 and currently has operations in 42
countries around the world with approximately half of our twenty thousand
employees in South Africa.
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