| Wed 4 Jun 2008, 17:01 | | WES - Wesco Investments Limited - Abridged group income statement |
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WES
WES
WES - Wesco Investments Limited - Abridged group income statement
WESCO INVESTMENTS LIMITED(Incorporated in the Republic of South
Africa)Registration Number 1968/005871/06ISIN: ZAE 000007928 JSE Share code:
WES("Wesco", "the group" or "the company")
Audited results for the 12 months ended 31 March 2008
ABRIDGED GROUP INCOME STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2008 2007
Income 39 950 21 694
Administrative expenses (8 869) (5 364)
Operating profit 31 081 16 330
Share of associates` income 15 389 187 671
Profit on disposal of available-for-sale 135 057
financial assets
Profit on disposal of associate 162 828
Profit before taxation 181 527 366 829
Taxation (96 975) (80 080)
Profit for the year 84 552 286 749
Attributable to:
Equity holders of the company 85 722 282 408
Minority interest (1 170) 4 341
84 552 286 749
Per share information - cents
Basic earnings and diluted earnings 1 015 3 345
Disposal of available-for-sale financial
assets:
- Profit (1 599)
- Attributable taxation 232
Disposal of associate:
- Profit (1 929)
- Attributable taxation 779
Headline earnings (352) 2 195
Pension fund surpluses 670 (795)
utilised/(recognised)
Adjusted headline earnings 318 1 400
Dividends declared and paid 8 400 1 200
ABRIDGED GROUP CASH FLOW STATEMENT
Audited Audited
year ended year ended
31 March 31 March
R000 2008 2007
Dividends received 26 425 113 560
Interest received 35 119 15 981
Dividends paid to shareholders (709 111) (101 302)
Dividends paid to minority shareholders (11 705) (493)
Normal taxation paid (69 287) (2 611)
Secondary tax on companies paid (68 170)
Other operating cash flows (4 032) (3 463)
Net cash flow in operating activities (800 761) 21 672
Available-for-sale financial assets and
operating assets realised/(acquired) 843 668 (604 288)
Proceeds on disposal of associate 590 554
Increase in cash and cash equivalents 42 907 7 938
Cash and cash equivalents at end of the 79 055 36 148
year
ABRIDGED GROUP BALANCE SHEET
Audited Audited
31 March 31 March
R000 2008 2007
Assets
Non-current assets 1 157 229 1 168 162
Investment in associate 1 153 671 1 160 216
Property and equipment 3 558 3 620
Retirement benefit asset 3 083
Deferred taxation 1 243
Current assets 79 067 883 198
Total assets 1 236 296 2 051 360
Equity and liabilities
Capital and reserves 1 209 156 1 950 117
Minority interest 66 12 941
Deferred tax 20 784
Current liabilities 27 074 67 518
Total equity and liabilities 1 236 296 2 051 360
Net asset value per share - cents 14 323 23 101
Number of ordinary shares in issue (000) 8 441.8 8 441.8
ABRIDGED STATEMENT OF CHANGES IN EQUITY
Audited Audited
year ended year ended
31 March 31 March
R000 2008 2007
Share capital
Balance at beginning and end of the year 11 752 11 752
Non-distributable reserve 1 001 456 1 125 573
Balance at beginning of the year 1 125 573 1 275 031
Dilution of interest in associate (2 560)
Movement in associates` reserves (125)
Reserves realised on disposal of
available-for-sale financial assets (117 572)
Net fair value adjustment to available-
for-sale financial assets 53 871
Transfers to retained earnings (6 545) (200 644)
Retained earnings 195 948 812 792
Balance at beginning of the year 812 792 431 042
Profit for the year 85 722 282 408
Dividends (709 111) (101 302)
Transfers from non-distributable reserves 6 545 200 644
Total capital and reserves 1 209 156 1 950 117
Minority interest 66 12 941
Balance at beginning of the year 12 941 9 162
(Loss)/profit for the year (1 170) 4 341
Dividends paid (11 705) (493)
Other movements (69)
Total equity 1 209 222 1 963 058
NOTES Accounting policiesThese consolidated financial statements have been
prepared in accordance with IAS34, Interim Financial Reporting, under the
historical cost convention as modified by the revaluation of available-for-sale
financial assets. The accounting policies are consistent with those of the
previous year.
REVIEW The group`s primary investment and source of income is its 25% interest
in motor manufacturer Toyota South Africa (Proprietary) Limited (Toyota SA).
Total vehicle sales in the domestic market decreased by 5.4% to 676 097 units
during the 2007 calendar year, reflecting the impact of higher inflation and
several consecutive interest rate increases on consumer spending.
During that period Toyota SA`s total domestic sales increased by 2.8% to 155 244
units. Growth in commercial vehicle sales compensated for lower passenger units.
The brand`s market share increased from 21.1% to 23%. Exports increased to 59
378 units from 49 142 units in 2006.
Toyota SA`s turnover in the financial year ended 31 March increased from R30
764.8 million in 2007 to R35 062 million in 2008. Profit after tax decreased
from R435.1 million to R61.6 million. Significant factors affecting
profitability include low price increases on domestic sales, and higher finance
costs on interest-bearing debt following substantial capital expenditure in
recent years. Toyota SA recognises allocated retirement benefit fund surpluses
in income, and during the year under review partly utilised these surpluses to
purchase defined benefit fund rights from its employees. The net effect of
recognition and utilisation of surpluses on profit after tax for the year
amounted to an expense of R220.8 million, while in the previous financial year
R259.7 million was recognised as income.
The group`s share of Toyota SA`s profit after tax amounted to R15.4 million
(2007: R108.8 million).
In the comparative period, motor component manufacturer, Metair Investments
Limited, contributed R78.9 million to the group`s income from associates, up to
its disposal during December 2006.
Available-for-sale financial assets (unit trust investments) were sold during
the year at a profit of R135 million.
Surplus cash of R658 million was paid to shareholders as special dividend in
December 2007. Taxation expense for the year under review includes R69.4 million
in respect of secondary tax on companies, calculated on net dividends paid.
OUTLOOKThe restraining effect of high interest rates on vehicles sales is
expected to continue for the foreseeable future, as is inflationary pressure on
margins, and increased focus on efficiency will be required to maintain Toyota
SA`s overall profitability in the year ahead.
CAUTIONARY ANNOUNCEMENTShareholders were advised on 27 May 2008 that the company
has entered into discussions in respect of a proposed disposal of Wesco`s 25%
interest in Toyota South Africa (Proprietary) Limited to Toyota Motor
Corporation of Japan. A further announcement in this regard will be made in due
course.
AUDIT REPORTThe results for the year have been audited by PricewaterhouseCoopers
Inc. and their unqualified audit report on the 31 March 2008 annual financial
statements is available for inspection at the company`s registered office.
ANNUAL REPORTThe annual report for the year ended 31 March 2008, together with
the notice of the 2008 annual general meeting, will be mailed to shareholders on
or about 27 June 2008.
DIVIDENDIn view of the special dividend paid in December 2007, it was decided
not to declare a final dividend for 2008.
On behalf of the board
E Le R BRADLEY G J STRYDOMChairman
Chief Executive Officer
Johannesburg
4 June 2008
Registered office
Wesco House, 10 Anerley Road,
Parktown, Johannesburg
Telephone 011 646-3011
Facsimile 011 646-3022
Postal address
P O Box 2077, Saxonwold 2132
E-mail
info@wesco.co.za
Auditors
PricewaterhouseCoopers Inc
2 Eglin Road, Sunninghill,
(Private Bag X36, Sunninghill 2157)
Registrar
Computershare Investor
Services (Pty) Ltd
70 Marshall Street, Johannesburg 2001
(P O Box 61051, Marshalltown 2107)
Sponsor
Arcay Moela Sponsors (Pty) Ltd
Arcay House, 3 Anerley Road
Parktown, Johannesburg
(P O Box 62397, Marshalltown 2107)
Website
www.wesco.co.za
Directorate:
Executive director: G J Strydom (Chief Executive Officer)
Non-executive director: E Le R Bradley (Chairman)
Independent non-executive directors: Dr M L Benade, R S Broadley,
P R Robinson
Company Secretary: F D W Peachey
These results are available on the company`s website: www.wesco.co.za
Date: 04/06/2008 17:01:01 Produced by the JSE SENS Department.
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