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WNH
WNH
WNH - Winhold Limited - Unaudited abridged consolidated results of the group for
the six months ended 31 March 2008
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share code: WNH) (ISIN number: ZAE000033916)
Statement of results
Unaudited abridged consolidated results of the group for the six months ended 31
March 2008
Highlights
Operating profit up by 42%
Profit after tax up by 29%
Headline earnings per share up by 23%
Consolidated income statement
Year ended Six months ended
30 September 31 March
2007
`2008 `2007
R`000 R`000 R`000
917 220 Revenue 457 831 438 439
42 060 Operating profit 19 392 13 767
22 283 Investment income 10 970 11 216
(32 830) Finance costs (17 152) (15 897)
1 604 Finance income 983 906
33 117 Profit before taxation 14 193 9 992
(3 960) Taxation (1 114) 64
497 Share of after tax profits of 256 254
associate companies
29 654 Net profit after tax 13 335 10 310
Attributable to:
26 804 Ordinary shareholders 12 172 9 989
2 850 Outside shareholders 1 163 321
29 654 13 335 10 310
26 804 Earnings 12 172 9 989
26 768 Headline earnings 12 181 9 940
53 802 EBITDA 26 202 20 429
21.4 Earnings per ordinary share ( 9.7 8.0
cents )
21.3 Headline earnings per ordinary 9.7 7.9
share ( cents )
125 506 Weighted average ordinary shares 125 506 125 506
in issue adjusted for shares held
in group on which the earnings
per share has been calculated
(000`s)
126 215 Ordinary shares in issue ( 000`s 126 215 126 215
)
Reconciliation of headline
earnings
26 804 Net profit after tax attributable 12 172 9 989
to ordinary shareholders
(98) Net profit on disposal of fixed (18) (69)
assets
62 Taxation effect on disposals 27 20
26 768 Headline earnings for the period 12 181 9 940
Reconciliation of Earnings before
interest, tax, depreciation and
amortisation ("EBITDA")
42 060 Profit from operations 19 392 13 767
11 742 Depreciation & amortisation of 6 810 6 662
intangibles
53 802 EBITDA 26 202 20 429
Summarised consolidated balance sheet
Year ended Six months ended
30 September 31 March
2007
R`000
`2008 `2007
R`000 R`000
ASSETS
119 102 Property plant and equipment 125 372 105 806
1 506 Trade marks and patents 1 314 1 403
160 788 Investments 160 788 160 788
1 015 Investments in associates 1 015 773
26 541 Goodwill 26 541 26 541
1 771 Deferred taxation 1 771 1 449
Current assets
138 678 - inventory 158 103 147 215
176 833 - receivables 185 435 171 225
22 980 - bank and cash 8 151 12 396
649 214 Total assets 668 490 627 596
EQUITY AND LIABILITIES
122 793 Ordinary share capital and 122 793 122 793
premium
94 209 Retained earnings 96 915 77 394
217 002 Shareholders` interest 219 708 200 187
4 862 Outside shareholders` interest 6 025 2 608
221 864 Total Equity 225 733 202 795
Non-current liabilities
193 736 - interest bearing 188 792 188 875
1 531 - interest free 1 592 976
5 198 - deferred taxation 5 198 3 399
Current liabilities
23 652 - bank overdraft 56 253 52 360
19 908 - short term borrowings 21 033 16 111
Current liabilities - interest
free
183 061 - payables 168 241 159 859
264 - taxation 1 648 3 221
649 214 Total equity and liabilities 668 490 627 596
Supplementary information
15 383 Capital commitments 9 820 659
37 015 Capital expenditure 12 972 17 900
11 742 Depreciation 6 810 6 662
237 296 Interest bearing borrowings 266 078 257 346
22 826 Interest earning deposits 8 090 12 251
171.9 Net asset value per ordinary 175.1 159.5
share ( cents )
149.7 Net tangible asset value per 152.9 137.2
ordinary share ( cents )
Summarised consolidated cash flow statement
Year ended Six months ended
30 September 31 March
2007
R`000
`2008 `2007
R`000 R`000
23 107 Cash flow (used in) / from (30 802) (25 381)
operating activites
61 507 Profit before interest, tax and 33 985 28 479
non-cash items
(13 886) Change in inventory (19 425) (22 423)
(4 946) Change in receivables (5 433) (10 405)
14 335 Change in payables (17 579) 860
57 010 Cash flow (used in) / from (8 452) (3 489)
operations
(18 682) Net finance costs (13 410) (12 174)
211 Share of results from associates 256 210
(6 597) Taxation paid 270 (1 093)
(8 835) Dividends paid (9 466) (8 835)
(36 071) Cash flow used in investing (12 870) (17 554)
activities
(37 015) Investment in fixed assets (12 972) (17 900)
(68) Buy out of minorities in a - -
subsidiary
1 012 Proceeds from disposal of fixed 102 346
assets
13 891 Cash flow (used in) / from (3 758) 4 570
financing activities
31 452 Interest bearing borrowings 8 939 16 654
raised
(17 561) Interest bearing borrowings (12 697) (12 084)
repaid
927 Net (decrease)/increase in cash & (47 430) (38 365)
cash equivalents
(1 599) Cash and cash equivalents at (672) (1 599)
beginning of period
(672) Cash and cash equivalents at end (48 102) (39 964)
of period
Summarised consolidated statement of changes in equity
Year ended Six months ended
30September 31 March
2007
`2008 `2007
R`000 R`000 R`000
199 033 Shareholders` funds at beginning 217 002 199 033
of the year
26 804 Changes in retained earnings 12 172 9 989
(8 835) Dividend paid (9 466) (8,835)
- ordinary
217 002 Shareholders` interests at end of 219 708 200 187
the period
Segment information
BUSINESS SEGMENTS
MINING INDUSTRIAL
CONSUM- CONSUM- FLEXIBLE
ABLES ABLES PLASTICS
R`000 INMINS INMINS GUNDLE OTHER TOTALS
TURNOVER 12 MONTHS TO SEPT 341,333 137,552 437,191 1,144 917,220
2007
6 MONTHS TO MARCH 157,850 72,744 226,197 1,040 457,831
2008
6 MONTHS TO MARCH 157,999 66,088 214,174 178 438,439
2007
OPERATING 12 MONTHS TO SEPT 6,170 6,328 29,270 292 42,060
2007
PROFIT 6 MONTHS TO MARCH 3,653 4,134 12,575 (970) 19,392
2008
6 MONTHS TO MARCH 3,211 3,506 7,954 (904) 13,767
2007
INVESTMENT 12 MONTHS TO SEPT - - - 22,283 22,283
2007
INCOME 6 MONTHS TO MARCH - - - 10,970 10,970
2008
6 MONTHS TO MARCH - - - 11,216 11,216
2007
DEPRECIA- 12 MONTHS TO SEPT 1,085 619 9,103 935 11,742
2007
TION 6 MONTHS TO MARCH 623 372 4,983 832 6,810
2008
6 MONTHS TO MARCH 524 287 5,690 161 6,662
2007
CAPITAL 12 MONTHS TO SEPT 1,263 1,442 7,165 27,145 37,015
2007
EXPENDITURE 6 MONTHS TO MARCH 234 128 12,406 204 12,972
2008
6 MONTHS TO MARCH 844 1,021 2,831 13,204 17,900
2007
TOTAL 12 MONTHS TO SEPT 124,264 45,358 246,774 232,818 649,214
2007
ASSETS 6 MONTHS TO MARCH 124,259 54,104 260,127 230,000 668,490
2008
6 MONTHS TO MARCH 131,083 48,575 233,208 214,730 627,596
2007
TOTAL 12 MONTHS TO SEPT 70,558 20,833 152,168 183,791 427,350
2007
LIABILITIES 6 MONTHS TO MARCH 65,351 30,599 166,461 180,346 442,757
2008
6 MONTHS TO MARCH 75,182 28,683 142,849 178,087 424,801
2007
COMMENTS
GROUP PROFILE
Winhold Limited is an investment holding company with its main investments
being
100% stakes in Gundle Limited ("Gundle") and Inmins Limited ("Inmins"), as
well as a 50,1% holding in Novara Profile Extrusions (Pty) Limited
("Novara")
Gundle manufactures and distributes polyethylene and polypropylene bags,
sheeting and packaging to the agricultural, chemical, construction, food
processing, industrial and consumer markets.
Inmins services the mining and industrial sectors, supplying mainly
industrial consumer goods.
Novara manufactures various plastic products made out of recycled PET.
REVIEW OF RESULTS
Proactive actions undertaken during the previous financial year produced
encouraging results. Operating profit for the six months ended 31 March
2008, compared to the six months ended 31 March 2007, increased by 42,0%,
profit after tax increased by 29,3% and ordinary shareholders profit
increased by 21,9%.Headline earnings per share increased by 22,8%.
The growth in revenue of 4,4% was adversely affected by lower demand in
the market. Higher interest rates, implementation of the National Credit
Act, fuel price increases and power outages, as well as extremely high
price increases in primary raw materials such as steel and polymers, had a
major negative impact on growth in the various markets served by the
group.
Cash flow is always under pressure in the first half due to the December
holidays, and dividend payments in February. Raw material price
increases necessitate more funding of strategic stock and debtors.
Historically, the cash flow improves during the second six month period.
OPERATIONAL REVIEW
Gundle - Continued its improvement in profitability. Operating profit
improved by 58%, despite negative sentiment in the market place and a
turnover increase of only 5,6%. Continued focus on internal efficiencies
helped to improve the bottom line. Capital expenditure in the current
year has not yet contributed to results as commissioning has just begun,
while certain machinery has yet to be delivered. Benefits from these
investments should commence during the last two months of the financial
year.
Gundle also launched new products and continues to deliver innovations and
improved service to its customers.
Inmins - Market conditions remained tight and turnover grew by 2,9%.
Operating profit improved by 15,9%.
Seven of the sixteen operations improved their profitability versus the
comparitive period. The manufacturing division has returned to
profitability and should continue to improve. Conveyor belt sales from
the overseas manufacturer improved.
Performances of the operations are closely monitored and possible
opportunities are explored on an ongoing basis.
Novara - More product development took place and some interesting
prospects are in progress. Management remains confident that this
investment will yield acceptable returns in due course.
PROSPECTS
The group is well positioned to continue earnings growth even in current
negative market conditions.
Current commissioning of capital projects should further improve Gundle`s
profitability in the near future.
The introduction of a new flexible hose range at Inmins is expected to
expand its current hose market.
The continued growth in the platinum mining sector will further benefit
the Inmins mining trading division.
More opportunities are being actively pursued in Novara.
CAPITAL COMMITMENTS
Plant and equipment to the value of R 9 820 000 was on order for use in
existing operations.
DIVIDENDS
In line with group policy, no interim dividends have been declared.
BASIS OF PREPARATION
The unaudited results for the 6 months to 31 March 2008 have been prepared
in accordance with International Financial Reporting Standards ("IFRS")
including IAS 34. The accounting policies used are consistent in all
respects with those applied in the financial statements for the year ended
30 September 2007, and are in compliance with the South African Companies
Act (1973) and the Listing Requirements of the JSE Limited.
These results have not been reviewed or reported on by the auditors of the
company.
CORPORATE GOVERNANCE
The group subscribes to the value of good corporate governance and is
committed to continued implementation of the recommendations of the King
II Report and the requirements of the JSE Limited. The group endeavours to
conduct its business in accordance with the principles of accountability,
transparency and integrity.
On behalf of the board
WAR WENTELER D B MOSTERT
Chairman Deputy Chairman
Date : 4 June 2008
Directors :
WAR Wenteler (Chairman),
DB Mostert (Deputy Chairman) , W Fourie (Financial), PJ Kruger, NP
Mnxasana , N Fubu
( Independent non-executive)
Website: www.winhold.co.za
Company Secretary and registered office :
D J de Villiers
884 Linton Jones Street, Industries East, Germiston
Telephone: +27 11 345 9800
Fax: +27 11 86 631 6386
(PO Box 5324, Johannesburg 2000)
( Email : davedevilliers@winhold.co.za)
Transfer Secretaries :
Computershare Investor Services(Pty)Ltd
70 Marshall Street, Johannesburg
Telephone: +27 11 370 5000
Fax: +27 11 688 5248
(PO Box 61051, Marshalltown 2107)
( Email : registrar@computershare.co.za )
Sponsor :
Arcay Moela Sponsors (Pty) Ltd
Arcay House, 3 Anerley Road, Parktown 2193
(PO Box 62397, Marshalltown, 2107)
Telephone: +27 11 325 6008
Fax : +27 11 325 6337
(Email : dougg@arcaymoela.co.za)
Auditors :
BDO Spencer Steward (Johannesburg) Inc
13 Wellington Road, Parktown, 2193
Telephone: +27 11 643 7271
Fax: +27 11 643 6585
(Pvt Bag X60500, Houghton, 2041)
( Email : bdojhb@bdo.co.za )
Date: 04/06/2008 16:45:01 Produced by the JSE SENS Department.
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