| Mon 2 Jun 2008, 16:00 | | DLV - Dorbyl Limited - Preliminary group results for the year ended 31 March |
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DLV
DLV
DLV - Dorbyl Limited - Preliminary group results for the year ended 31 March
2008
DORBYL LIMITED
(Incorporated in the Republic of South Africa)
(Company registration number 1911/001510/06)
Share code: DLV ISIN: ZAE 000002184
INCOME STATEMENT
Audited Audited
Year to Year to
March March
2008 2007
R000 R000
Continuing operations:
Revenue 944 586 962 069
Cost of sales (883 242) (785 945)
Gross profit 61 344 176 124
Other operating income 8 165 5 445
Administrative expenses (132 098) (190 115)
Selling and distribution expenses (3 939) (4 163)
Other operating expenses
Loss on sale of controlling interest in (16 717) -
subsidiary
Impairment of assets - 113
Operating loss (83 245) (12 596)
Net financial income 15 564 20 769
Financial income 24 017 26 829
Financial costs (8 453) (6 060)
Share of profit of associate - 91
(Loss)/profit before taxation (67 681) 8 264
Income tax (expense)/relief (1 362) 236
(Loss)/profit after taxation from continuing (69 043) 8 500
operations
(Loss)/profit on discontinued operations, net (1 495) 9 436
of taxation
(Loss)/profit for the year (70 538) 17 936
Attributable to:
Equity holders of the parent (66 641) 13 603
Minority interest (3 897) 4 333
(Loss)/profit for the year (70 538) 17 936
Earnings per share (cents)
Basic (loss)/earnings per share (196.4) 40.1
Continuing operations (192.0) 12.3
Discontinued operations (4.4) 27.8
Headline (loss)/earnings per share (143.9) 7.3
Continuing operations (143.9) 7.3
Discontinued operations 0.0 0.0
Dividends paid per ordinary share (cents) 10 20
Final - year ended 31 March 2007 (2006) 10 10
Interim - period ended 30 September 2007 - 10
(2006)
Dividend cover - headline earnings / normal (14.4) 0.4
dividends (times)
Dividends declared per ordinary share (cents)
subsequent to year end - 10
Headline (loss)/earnings reconciliation
(Loss)/profit for the year (66 641) 13 603
Adjusted for: 17 833 (11 129)
Profit on disposal of plant, vehicles and (379) (1,903)
equipment
Loss on sale of controlling interest in 16 717 -
subsidiary
Loss/(profit) on discontinuance of operations 1 495 (9,436)
Impairment of assets - (113)
Income tax expense attributable to adjustments - 323
Headline (loss)/earnings (48 808) 2 474
Depreciation and amortisation 22 586 21 210
Financial income 24 017 26 829
Interest received 17 803 21 765
Foreign exchange gains 6 214 5 064
Financial cost (8 453) (6 060)
Interest paid (391) (266)
Foreign exchange losses (7 850) (5 582)
Interest paid - other (212) (212)
CASH FLOW STATEMENT
Audited Audited
Year to Year to
March March
2008 2007
R000 R000
Cash utilised by operations (81 143) (67 165)
Operating cash flow (65 947) 13 685
Movement in working capital (34 919) (96 812)
Interest income 17 803 21 765
Interest expense (603) (478)
Income tax received/(paid) 2 523 (5 325)
Cash flows from investing activities (60 151) (21 745)
Proceeds on disposal of property, plant and 538 4 844
equipment
Acquisition of property, plant and equipment (40 677) (26 847)
Cash disposed on disposal of business and (20 012) -
subsidiaries
Decrease in investments in - 258
subsidiaries/associates
Cash flows from financing activities (3 392) (10 500)
Dividends paid to equity holders (3 392) (6 785)
Dividends paid to minority interest - (3 715)
Net decrease in cash and cash equivalents (144 686) (99 410)
Cash and cash equivalents at beginning of year 259 909 359 319
Cash and cash equivalents at end of year 115 223 259 909
STATEMENT OF CHANGES IN EQUITY
Audited Audited
Year to Year to
March March
2008 2007
R000 R000
Balance at beginning of year 519 257 512 105
Net income recognised directly in equity - (284)
(Loss)/profit for the year (70 538) 17 936
Dividends to shareholders (3 392) (10 500)
Balance at end of year 445 327 519 257
BALANCE SHEET
Audited Audited
March March
2008 2007
R000 R000
ASSETS
Non-current assets 238 610 220 434
Property, plant and equipment 195 429 214 810
Investment in associates 43 181 286
Deferred tax assets - 5 338
Current assets 445 479 543 804
Inventories 166 364 130 488
Trade and other receivables 129 513 136 490
Cash and cash equivalents 149 602 275 452
Taxation receivable - 1 374
Total assets 684 089 764 238
EQUITY AND LIABILITIES
Total equity 445 327 519 257
Equity attributable to equity holders of the 401 043 471 076
parent
Minority interest 44 284 48 181
Non-current liabilities 27 325 42 781
Preference share capital 3 980 3 980
Employee benefits liability 15 819 27 662
Defered tax liabilities 7 526 11 139
Current liabilities 211 437 202 200
Bank overdraft 34 379 15 543
Trade and other payables 164 058 166 761
Employee benefits liability 11 444 18 381
Provisions 770 1 515
Taxation payable 786 -
Total equity and liabilities 684 089 764 238
Capital commitments authorised 17 110 9 846
Authorised and contracted for 15 526 9 846
Authorised but not contracted for 1 584 -
Operating lease commitments 17 104 18 987
Operating lease receivables 31 965 11 827
Investments in associates 43 181 286
Net asset value per share (cents) 1 182 1 389
Acquisition of property, plant and equipment
Expansion 15 495 6 856
Replacement 25 182 19 991
Ordinary shares (000)
Issued - net of treasury shares 33 924 33 924
Weighted average number of shares - net of 33 924 33 924
treasury shares
SELECTED EXPLANATORY NOTES
The Group reflected an earnings loss attributable to equity holders of the
parent for the year of R66,6 million or 196,4 cents per share, which includes a
loss of R1,5 million or 4,4 cents per share relating to legal costs in respect
of discontinued operations.
Turnover of the continuing operations for the year declined by 1,8% to R945
million.
Net financial income (including forex profits and losses) amounted to R15,6
million compared to R20,8 million for the corresponding prior year, as cash
resources were used to fund operating losses, increase stock levels and for
capital expenditure requirements.
The loss on sale of the controlling interest in subsidiary is the loss on the
disposal by Dorbyl Limited of a 50% interest in Guestro Wheels (Pty) Limited
(now known as Dorbyl Magnetto Wheels (Pty) Limited).
Included in administration expenses is a decrease in the provision for the
employee benefits liability of R16,7 million relating mainly to the recognition
of specific endowment policies being available for set-off against the post
retirement medical aid obligation.
As advised in the Trading Update released on 6 March 2008, the underlying
reasons for the deterioration in the results were predominantly the negative
impact of global price pressures from Original Equipment Manufacturers (OEM)
combined with increased input costs which were not fully recoverable from
customers.
In addition, problems of under utilisation of capacity and inefficiency at the
forging and machining operation in Uitenhage caused this operation to be the
main loss contributor during the current financial year. This operation is being
restructured, resulting in downsizing of the operation, including retrenchments
and costs related thereto.
Combined with these factors, the introduction of various new models in the motor
manufacturing sector, which by virtue of their run-out and ramp-up process,
affected the regular supply of product with the resultant adverse effect on the
operating results of the other OEM oriented operations. The consequent
substantial pricing pressure from our major customers negatively impacted on the
historical gross profit levels that we have been able to achieve.
The net cash position at R115,2 million is R144,7 million lower than the
position at 31 March 2007 due mainly to an increase of R34,9 million in working
capital, capital expenditure of R40,7 million and the operating losses. In
addition, R20 million of the proceeds from the sale of the controlling interest
in Guestro Wheels (Pty) Limited was only received subsequent to year-end.
The review of the basic business model of the casting and machining operation in
Benoni is proceeding.
Market conditions are expected to remain challenging for all operations for the
financial year ending 31 March 2009. The strategy of restructuring the balance
of the operations in conjunction with new product development with off-shore
partners and technological agreements continues to be pursued.
Basis of preparation and Audit Opinion
The provisional financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) and IAS 34. The accounting
policies are consistent to those applied in the prior comparative year.
The unmodified audit reports of KPMG Inc. included in the financial statements
and on the summarised financial statements contained in this abridged report are
available for inspection at the company`s registered office.
Dividend
In view of the adverse results for the year under review, no dividend has been
declared.
On behalf of the board
John Newbury (Chairman)
Roland Rohrs (Chief Executive)
2 June 2008
Transfer secretaries:
Computershare Investor Services
(Pty) Limited
70 Marshall Street, Johannesburg 2001
(P O Box 61051, Marshalltown, 2107).
Company secretary and registered office:
BD Bhikha,
Lincoln Road, Industrial Sites,
Benoni South, 1501.
PO Box 5500, Benoni South, 1502
Sponsor: PSG Capital (Pty) Limited
Building 8, Woodmead Office Park, 1 Woodmead Drive, Woodmead
PO Box 987, Parklands, 2121
Directors: JE Newbury (Chairman)**,
RF Rohrs (Group Chief Executive)*,
JB Magwaza**, T van Wyk***, PM Bester**.
Executive director ** Independent non-executive directors
*** Non-executive director
Date: 02/06/2008 16:00:01 Produced by the JSE SENS Department.
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