| Mon 15 Sep 2008, 7:35 | | BCF - Bowler Metcalf Limited - Provisional audited results for the year ended 30 |
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BCF
BCF
BCF - Bowler Metcalf Limited - Provisional audited results for the year ended 30
June 2008
Bowler Metcalf Limited
REG NO : 1972/005921/06
ALPHA CODE : BCF
ISIN CODE : ZAE000030797
Earnings +5.3%
Dividends paid +13.7%
PROVISIONAL AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2008
Rmil 30 June % 30 June
2008 change 2007
BALANCE SHEET
Property, plant and equipment 172.2 175.8
Deferred tax 0.6 0.5
Goodwill 11.1 11.6
Investments 6.3 -
Current assets 167.5 168.2
Non-current classified as held - 16.0
for sale
TOTAL ASSETS 357.7 -4 372.1
Total equity 265.7 248.3
Deferred tax 17.9 18.8
Long term liabilities 7.7 17.8
Current liabilities 66.4 85.8
Liabilities directly - 1.4
associated with non-current
assets classified as held for
sale
TOTAL EQUITY & LIABILITIES 357.7 372.1
CHANGES IN EQUITY
Opening balance 243.5 201.4
Share issue - 10.5
Net profit 49.3 46.8
Dividends paid -17.0 -15.2
Closing balance 275.8 243.5
Treasury shares -16.2 -
Minority interest 6.1 4.8
Total equity 265.7 248.3
Share capital 21.5 21.5
Retained earnings 254.2 222.0
Minority interest 6.1 4.8
Treasury shares -16.1 -
CASH FLOW
Operating activities 66.3 42.4
Investing activities -30.3 -39.5
Financing activities -27.7 12.6
Net cash flow 8.3 15.5
Opening balance -13.7 -29.2
Closing balance -5.4 -13.7
INCOME STATEMENT
Revenue 405.7 -5 427.2
Other income 4.3 2.1
Operating costs -304.2 -321.7
Depreciation -33.2 -32.9
Net interest -3.1 -6.0
Net profit before tax 69.5 68.7
Income tax expense -20.0 -21.3
Net profit after tax 49.5 47.4
Minority interest -0.2 -0.6
Attributable to parent 49.3 +5 46.8
EARNINGS PER SHARE
Earnings (cents) 56.18 53.42
Disposal of assets 0.01 -0.17
Disposal of subsidiary -0.79 -
Headline earnings (cents) 55.4 +4 53.25
ADDITIONAL INFORMATION
Div/share paid (cents) 19.45 +14 17.25
Dividend proposed (cents) 19.30 18.40
Dividend cover (times) 2.87 3.43
Shares in issue (millions) 87.693 87.537
SEGMENTAL ANALYSIS
Net profit
- plastic operations 44.1 +5 42.0
- filling operations 0.7 -88 5.7
- property investment 3.8 -12 4.3
- disposal group - -5.2
- unallocated 0.7 -
49.3 +5 46.8
COMMENT
A 5.3% growth in attributable income to R49,3m was achieved, despite the
poor performance of Quality Beverages, which took 10.3% off the bottom-line.
Adjusted for the discontinuation of Amcos, revenue increased by 8% to R406m,
confirming that the FMCG market is less susceptible to high interest rates or
credit restrictions. R8,2m cash was generated after capital purchases of
R30m, a R2,5m increase in paid dividends and a share buyback spend of R16.1m
(representing 4,4% of issue shares). NAV per share increased to 315 cents (457
cents on estimated market values of properties). The 13.7% increase in paid
dividends to 19.45 cents yields 4.6% on the year end share price.
Plastic Operations
Against the backdrop of a 35% raw material price rise, debilitating power
outages and over competitive pricing, all evidenced by the poor financial
performances of the plastics packaging market in general, Bowler Plastics
performed solidly. Depreciation charges increased by R1,6m to R23m and power
cuts cost some R0, 55m. The 7% increase in operating profit was hard fought,
and the industry has forced through some long overdue price increases towards
the end of the period. Well controlled costs left operating margins unchanged.
Effective 1 July 2008, 100% of the issued shares and related party claims
of Gad-Tek (Pty) Ltd (a KZN based plastic convertor) were purchased for
two rand. Subsequently R4,67m of creditor claims were purchased for R2,33m,
thereafter giving an estimated fair value of assets at R9,46m and liabilities
at R10,7m. Accurate determination of assets, liabilities, contingent
liabilities and goodwill is dependant on the implementation of IFRS by
that company. Further working capital of approximately R8m is needed.
Revenue R20m is anticipated and a modest profit is expected to June 2009.
This purchase affords Bowler Plastics the long needed presence in KZN and it is
believed that the growth in this area will be beneficial.
Filling Operations
Contrasting strongly to the "sparkling" 2007 results, Quality Beverages suffered
a 89% decrease in attributable income and revenue fell R35m short of budget
because the company was severely hit by the unavailability of CO2 in the peak
months.
A further write-off of R,92m was made against an imported line of fruit juices
which proved unsuccessful despite positive market research.
Expansion into the Gauteng and Mpumalanga was deferred pending the resolution of
the CO2 problem. Equipment to the value of R12m which has been ordered will be
delayed and is now due for arrival only in January of 2009. Aside from the
stated problems, the company operated well and remains entrenched as the
preeminent second tier supplier in the company.
Property Investment
Attributable income remained static primarily because of lower rentals paid by
Amcos in terms of the sale agreement. This property is on the market and the
indicative price is in excessive of R40m, against a book value of R18m. Suitable
property is being investigated in KZN for the planned expansion.
BASIS OF PREPARATION
The Financial statements are prepared in accordance with IFRS and the Companies
Act in South Africa, the condensed financial statements with IAS 34.
AUDIT REPORT
The report of the auditors is available for inspection at the company`s
registered office.
DIVIDEND DECLARATION
A final dividend of 9.3c per share has been declared (2007: 9.30c) and is
payable to shareholders on Monday, 20 October 2008. The last day to trade will
be Friday, 10 October 2008. "Ex" dividend trading begins on Monday, 13 October
2008 and the record date will be Friday, 17 October 2008. Share certificates may
not be dematerialised or re-materialised between Monday, 13 October 2008 and
Friday, 17 October 2008, both days inclusive.
H.W. SASS (Chairman) M. BRAIN (Managing Director)
Cape Town, 15 September 2008
SPONSOR
Arcay Moela Sponsors(Pty) Ltd
3 Anerley Road, Parktown, 2193
AUDITORS
Mazars Moores Rowland
Registered Auditors and Accountants
Chartered Accountants (SA)
27th Floor, 1 Thibault Square
Cape Town, 8001
TRANSFER SECRETARIES
Computershare Investor Services 2004 (Pty) Ltd
P.O. Box 61051, Marshalltown, 2107
Date: 15/09/2008 07:35:02 Produced by the JSE SENS Department.
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