|
BSS
BSS
BSS - BSI (SA) - Audited condensed financial results: year ended 31 March 2008
BSI (SA) Limited
(Incorporated in the Republic of South Africa)
(Registration number 2001/023164/06)
(JSE code: BSS ISIN: ZAE000107371)
("BSI" or "the company")
- Revenue up 62%
- Attributable earnings for year up 196% to R99.4 million
- Earnings per share up 268%
- Headline earnings per share up 303%
- Net tangible asset value up 213%
- Listed on ALTX on 24 October 2007
AUDITED CONDENSED FINANCIAL RESULTS FOR THE YEAR ENDED 31 MARCH 2008
Condensed income statement
Audited Re-stated
year Audited
ended year
31 March 2008 ended
R`000 31 March 2007
R`000
Revenue 1 432 302 882 138
Gross profit 297 034 124 889
Other costs (136 259) (63 689)
Earnings before interest,
taxation,
deprecation and amortisation 160 775 61 200
("EBITDA")
Depreciation and (6 341) (1 646)
amortisation
Profit before interest and 154 434 59 554
taxation
Interest received 1 487 1 194
Interest paid (22 387) (12 980)
Profit before taxation 133 534 47 768
Taxation (34 167) (14 239)
Profit for the year 99 367 33 529
Attributable to equity 99 367 25 038
holders of BSI
Minority interests - 8 491
Profit for the year 99 367 33 529
Earnings per share (cents) 15.1 4.1
attributable to equity
holders of BSI
Reconciliation of headline
earnings:
Earnings attributable to 99 367 25 038
equity holders of BSI
Profit on disposal of (1 307) (1 903)
property, plant & equipment
Fair value adjustment on - (1 688)
investment property
Tax impact on adjustments 366 1 042
Headline earnings 98 426 22 489
attributable to ordinary
shareholders
Weighted average shares in 660 154 615 107
issue on which earnings are
based (000) (1)
Headline earnings per share 14.9 3.7
(cents)
Note:
The sub-division and increase in share capital, which includes the acquisition
of the minorities, has been applied retrospectively in the earnings per share
and headline earnings per share calculations of the comparative.
Condensed balance sheet
Re-stated
Audited Audited
31 March 2008 31 March 2007
R`000 R`000
ASSETS
Property, plant and 103 082 38 911
equipment
Goodwill 13 442 3 773
Intangible assets 1 527 188
Deferred taxation 2 860 5 255
Inventories 188 440 90 533
Trade and other receivables 380 315 185 755
Current tax receivable 303 189
Other financial assets 837 -
Cash and cash equivalents 26 236 17 112
Non-current assets held for - 3 000
resale
Total assets 717 042 344 716
EQUITY AND LIABILITIES
Total shareholders` equity 297 079 61 996
Minority interests - 18 622
Total equity 297 079 80 618
Other financial liabilities 59 968 16 634
Finance lease obligation 1 989 -
Trade and other payables 188 315 103 207
Current tax payable 22 634 9 522
Other liabilities 1 202 10 160
Deferred taxation 6 102 2 141
Bank overdraft 139 753 122 434
Total equity and liabilities 717 042 344 716
Number of shares in issue 721 755 615 107
(000) (1)
Net asset value per share 41.2 13.1
(cents)
Net tangible asset value per 39.1 12.5
share (cents)
Condensed statement of changes in equity
Audited Re-stated
31 March Audited
2008 31 March
R`000 2007
R`000
Balance at beginning of year 61 996 37 695
Profit for the year 99 367 25 038
Foreign currency translation 5 664 -
reserve
Issue of shares 127 384 -
Purchase of treasury shares (1 920) -
Listing expenses (1 164) -
Revaluation reserve movement 5 752 920
Dividends paid - (1 117)
Realisation of revaluation - (540)
reserve
Attributable to equity 297 079 61 996
shareholders at end of year
Minority interests at end of - 18 622
year(2)
Opening balance 18 622 10 104
Profit for the year - 8 491
Purchase of minority (18 622) -
interest
Realisation of revaluation - 540
reserve
Revaluation of property - 312
Dividends paid - (825)
Balance at end of year 297 079 80 618
Note:
The minority interest in group subsidiaries was purchased by BSI on the 1 April
2007, refer note below on Acquisitions.
Condensed cash flow statement
Audited Re-stated
31 March Audited
2008 31 March
R`000 2007
R`000
Cash flows in operating (83 786) (15 261)
activities
Cash flows from 123 574 40 331
operations
Changes in working (207 360) (55 592)
capital
Cash flow in investing (78 028) (22 963)
activities
Cash flow from financing 159 282 2 645
activities
Total cash movement for (2 532) (35 579)
the year
Cash at beginning of (105 322) (69 743)
period
Effect of exchange rate (5 663) -
movement on cash
balances
Total cash at end of (113 517) (105 322)
year
Condensed segment report
Audited Re-stated
31 March Audited
2008 31 March
R`000 2007
R`000
Gross revenue
Stockists 514 774 299 302
Bulk Sales 440 162 334 556
Exporting 471 292 242 942
Other 6 074 5 338
1 432 302 882 138
Profit before interest
and taxation
Stockists 41 239 21 226
Bulk Sales 40 723 21 049
Exporting 67 073 10 624
Other 5 399 6 655
154 434 59 554
OVERVIEW
The directors of BSI are pleased to present their maiden annual financial
results as a listed entity, for the year ended 31 March 2008 ("the period").
BSI listed on 24 October 2007 on the Alternative Exchange of the JSE Limited
(JSE) and raised R100 million in new capital through a private placement.
The BSI group of companies operates in the steel and associated industries with
strategically located operations in South Africa, Democratic Republic of the
Congo ("DRC") and Zambia to service the southern African markets. BSI markets
through three distinct channels, being Stockists, Bulk sales and Exports; all of
these divisions are supported by its steel processing operations.
From April 2007 to March 2008, South African ("SA") based operations, excluding
exports, achieved a 37% increase in tonnage attributable to organic growth. The
South African Iron & Steel Institute ("SAISI") reported a 4% increase in
volumes, for the 2007 calendar year.
FINANCIAL RESULTS
Headline earnings attributable to equity holders of BSI have increased by 337%
to R98.4 million (2007: R22.5 million). This exceeds the group`s forecast at
time of listing by 23%. Optimal utilization of the capital raised at listing
contributed significantly to the group`s growth for the period.
Revenue increased during the period by 62% to R1 432 million (2007: R882
million). Organic growth accounted for 55%, with the acquisitions accounting
for the balance.
Gross profit margin increased to 20.7% for 2008 (2007: 14.2%). This is up on
the forecast of 18.7% due to an increase in steel prices and an increase in
demand in the consumption of steel during the period. Operating costs have been
closely controlled and are at 10.2% of turnover, compared to the previous year`s
8.1%. Due to the acquisition of the agencies, in the current year, a portion of
turnover is now eliminated on consolidation, adversely affecting this
comparison. Interest paid has increased in line with the growth in the local
operations and is above forecast due to the higher than expected growth in
revenue and increases in the prime overdraft rate.
Cash flow for the period reflects the growth achieved. A net increase in
working capital of R207 million (2007: R56 million), together with the
investing activities of R78 million (2007: R23 million), has been funded out of
profits, the issue of additional shares and interest bearing debt. Group
borrowings closed at R202 million (2007: R139 million) for the year.
ACQUISITIONS
BSI acquired the remaining 30% of the issued share capital in Discount Steel
KZN, the remaining 25% of the issued share capital of Garrison Steel, the
remaining 35% of the issued share capital in Discount Steel Africa and the
remaining 30% of the issued share capital of Discount Steel Trading on the 1
April 2007.
In addition to the above, Discount Steel Africa acquired the entire issued share
capital of Discount Steel Zambia which, in turn, acquired the entire issued
share capital of Discount Steel Lubumbashi. The following assets and
liabilities have been consolidated in the group:
Fair value of assets and liabilities acquired R`000
Property, plant and equipment 13 558
Deferred tax assets 13 141
Goodwill 2 262
Inventories 8 281
Trade and other receivables 20 657
Cash and cash equivalents 1 799
Trade and other payables (33 124)
Bank overdraft (2 053)
Current tax payable (148)
Minority interest (269)
Consideration paid 24 104
The acquired businesses contributed revenues of R302 million and net profit of
R23 million to the group for the year ended 31 March 2008.
SHARE CAPITAL
Through its listing on the JSE, BSI placed 100 000 000 ordinary shares, at 100
cents per share, with selected investors through a private placement.
Prior to the date of listing on ALTx, an offer was made to the group`s employees
to acquire shares in the company through the Share Incentive Trust. On 24
October 2007, employees accepted 1 920 232 BSI ordinary shares issued to the BSI
Share Incentive Trust.
DIVIDEND POLICY
Initially all earnings generated by the group will be utilised to fund future
growth and development. It is the intention of the company to declare its maiden
dividend as a listed company based on the results for the financial year ended
31 March 2009.
PROSPECTS
SA real steel consumption (tons) remains positive, 2007 year being 6.7% up on
2006 (SAISI). Southern African export markets have continued to exceed SA
growth. We remain focused on organic growth, which provides the highest return &
lowest risk option. Our relatively low market share & growing steel consumption
supports this strategy.
Scope for consolidation within the industry provides additional interesting &
lucrative possibilities. Our strategy is to acquire businesses that will either
provide diversity through new products or geography.
We commenced earthworks at our Meyerton development mid May. This project will
be phased in two parts, with the first phase to be completed by March 2009 &
second phase by July/Aug 2009. The new facility is vital to support our growth &
efficiency initiatives.
Trading for the first two months of the new fiscal year have been very good.
Steel shortages prevail across most products, with long-products being
particularly tight & expected to remain so for the rest of the calendar year.
Flat product shortages are easing, excepting Quenched & Tempered plate & Colour-
coated coil, which are likely to remain in short supply for the foreseeable
future.
COMPARATIVE FIGURES
Comparative balances have been restated due to reclassification of account
balances.
STATEMENT OF COMPLIANCE
The condensed financial statements comprise a consolidated balance sheet, a
consolidated income statement, a consolidated statement of changes in equity and
a consolidated cash flow statement for the year ended 31 March 2008. The
accounting policies and methods of computation applied in the condensed
financial statements are in accordance with International Financial Reporting
Standards ("IFRS"). The condensed financial statements are in accordance with
IAS34, Interim Financial reporting, JSE Listings Requirements and the Companies
Act of South Africa.
The accounting policies applied for the year are consistent with those of the
previous year, except for:
the adoption of IFRS7, IAS1, AC502 and IFRIC7-10; and
headline earnings per share, which reflects the changes in Circular 8/2007.
The policies adopted in the 2008 had no impact on the financial results.
AUDIT OPINION
The annual financial statements have been audited by Deloitte & Touche and their
unmodified audit report is available for inspection at the company`s registered
office.
STATEMENT ON GOING CONCERN
The financial statements have been prepared on the going-concern basis since
the directors have every reason to believe that the company has adequate
resources in place to continue in operation for the foreseeable future.
By order of the Board
2 June 2008
W L Battershill J R Waller
Chief Executive Officer Chief Financial Officer
CORPORATE INFORMATION
Non executive directors: N G Payne, E G Dube
Executive directors: W L Battershill, G D G Mackenzie, C Parry, W
R Teichmann, J R Waller
Registered address: Murrayfield Park, Mkondeni,
Pietermaritzburg 3201
Postal address: P O Box 101096, Scottsville, 3209
Company secretary: S J Hackett
Telephone: (033) 846 2208
Facsimile: (033) 346 0870
Transfer secretaries: Computershare Investor Services
(Pty) Limited
Designated Adviser: Vunani Corporate Finance
Date: 02/06/2008 08:34:42 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 ] | |||||||||||||
|
|||||||||||||
