| Thu 22 May 2008, 7:07 | | FWD - Freeworld Coatings Limited - Delivers better |
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FWD
FWD
FWD - Freeworld Coatings Limited - Delivers better than expected maiden Interim
results
Freeworld Coatings Limited
(formerly Aletris Investment Holdings No. 1 Limited)
(Incorporated in the Republic of South Africa)
(Registration number: 2007/021624/06)
Share code: FWD ISIN: ZAE000109450
("Freeworld" or "the Company")
Freeworld Coatings delivers better than expected maiden Interim results
Highlights
* Record trading performance in the first six months
* Turnover up 14% to R1,3 billion
* Operating profit up 17% to R220 million
* HEPS of 66.5 cents
* Interim dividend declared of 10 cents per share
* Unbundled from Barloworld and successfully listed on the JSE in December
2007
Freeworld Coatings Limited (`Freeworld`), today announced a better than expected
maiden set of interim results for the year ended 31 March 2008, entrenching its
position as the country`s leading manufacturer and marketer of decorative and
performance coatings in southern Africa.
Andre Lamprecht, CEO of Freeworld Coatings, commented: "Despite tightening
economic circumstances Freeworld`s first set of interim results are better than
expected. This was a strong performance across all segments in the first half.
Whilst we are cautious about results for the second half, we look to continue to
do well in an even more challenging second half."
As this is the first year as a listed company, no strictly comparable figures
are available. However, if performance is measured against the segmental
results reported for Coatings Southern Africa in the Barloworld interim results
for 2007, then revenue increased by 14% to R1,322 million while operating
profit, which exceeded R200 million for the first time, increased by 17% to R220
million for the half year, representing an operating profit margin of 16.7%.
These results translate into headline earnings per share of 66.5 cents. An
interim dividend of 10 cents per share has been declared for the first half.
Total assets under management increased by 3.5% to R4,397 million for the
period, with total interest-bearing borrowings at R962 million, arising
principally from the Barloworld corporatisation process.
The Decorative Coatings business delivered a solid performance against
increasingly challenging conditions. Its result was enhanced by good cost
management practices. Demand for the Plascon brand remains strong in spite of
the slowdown in the retail sector. The segment`s performance was buoyed by
growing infrastructural spending and increased mining activity. However, margins
are coming under pressure, particularly in the industrial solvent base area as a
result of significant oil price increases.
In the performance coating segment, the Automotive business posted satisfactory
results with a solid improvement in the OEM business. A satisfactory performance
was also achieved in the refinish and distribution businesses. The Colourant
Systems business achieved an excellent performance, improving both its profit
and volume levels. Prospects are very positive for their environmentally
compliant products which have moved beyond the development phase and have been
successfully launched. Continued growth in Midas Earthcote franchise stores saw
10 stores being added, including one in Mauritius, bringing the total to 63
stores. Midas Earthcote is the product choice for the prestigious Ahmed Baba
Institute of Timbuktu, which will house 25 000 restored ancient manuscripts.
Our brushware and related application range show pleasing growth in independent
hardware stores.
Andre Lamprecht concluded, "Freeworld Coatings successfully purchased some
environmentally friendly technologies in the coatings removal and wood restorer
segments which will enhance our position both strategically and operationally.
These will be launched locally in the shorter term and internationally at a
later stage. Combined with our positive market reputation and business drivers
these will assist our growth as we look ahead with confidence and excitement."
ENDS -
22 May 2008
For further enquiries please contact:
Freeworld Coatings Limited 011 301 4600
Andre Lamprecht (CEO)
College Hill 011 447 3030
Jacques de Bie
Ashleigh Dubbelman
See the company website at www.freeworldcoatings.com for more information.
Notes to Editors:
* With its origin dating back 118 years, Freeworld Coatings is today the
leading manufacturer and marketer of decorative and performance coatings in
Southern Africa. The company markets its products internationally and is
one of the world`s 35 largest coatings businesses, with operations that
meet the highest global standards.
* Previously known as Barloworld Coatings Southern Africa, the company was
rebranded Freeworld Coatings Limited and was listed on the JSE Limited on 3
December 2007. In the five years to 2007, under the current management
team, the company almost doubled its turnover, comfortably doubled its
operating margin and quadrupled operating profit.
Date: 22/05/2008 07:07:02 Produced by the JSE SENS Department.
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