| Mon 29 Sep 2008, 9:10 | | ISB - Insimbi - Restated forecast results for the year ended 28 February 2009 |
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ISB
ISB
ISB - Insimbi - Restated forecast results for the year ended 28 February 2009
INSIMBI REFRACTORY AND ALLOY SUPPLIES LTD
(Incorporated in the Republic of South Africa)
(Registration No: 2002/029821/06)
Share code: ISB & ISIN code: ZAE000116828
("Insimbi" or "the company")
- Revenue increased by 25.68%
- Gross Profit increased by 82.53%
- Operating Profit increased by 90.74%
- Profit before Taxation increased by 104.57%
- EPS increased by 149.90%
- HEPS increased by 196.52%
With reference to the forecast financial information in the pre-listing
statement of Insimbi and the subsequent trading update published on 16 July
2008, the company has restated the forecast for the year ended 28 February 2009.
CONSOLIDATED FORECASTED INCOME STATEMENT FOR THE PERIOD ENDED 28 FEBRUARY 2009
Unaudited Forecasted Forecasted Audited
6 months 6 months 12 months 12 months to
to To 28 To 28 29 February
31 February February 2008
August 2009 2009 R`000
2008 R`000 R`000
R`000
Revenue 584 110 543 783 1 127 893 897 428
Cost of sales (498 964) (476 640) (975 604) (813 996)
_________ _________ _________ _________
Gross profit 85 146 67 143 152 289 83 432
Other operating 595 274 869 4 395
income
Administration (21 882) (20 034) (41 916) (21 424)
expenses
Other operating (5 002) (4 252) (9 254) (12 936)
expenses _________ _________ _________ _________
Operating profit 58 857 43 131 101 988 53 467
Interest received 75 76 151 190
Finance costs (4 037) (6 319) (10 356) (15 670)
_________ _________ _________ _________
Profit before 54 895 36 888 91 783 37 987
share of
associated
company`s profit
Share of (175) 253 78 1 449
associated
company`s profit
Minority share of 807 (807) - -
subsidiary
Profit on disposal - - - 5 469
of associate _________ _________ _________ _________
company
Profit before 55 527 36 334 91 861 44 905
taxation
Taxation (16 379) (9 075) (25 454) (18 346)
_________ _________ _________ _________
Profit for the 39 148 27 259 66 407 26 559
year _________ _________ _________ _________
Attributable to:
Equity holders of 39 148 27 259 66 407 26 559
the parent
Minority interest - - - -
_________ _________ _________ _________
Unaudited Forecasted Un audited Audited
6 months 6 months 12 months 12 months to
to To 28 To 28 29 February
31 February February 2008
August 2009 2009 R`000
2008 R`000 R`000
R`000
Number of shares 260 000 260 000 260 000 260 000
on listing
(000`s)
Earnings and
diluted earnings 15,06 10,48 25,54 10,22
per share (cents)
Headline and
diluted headline 15,05 10,48 25,53 8,61
earnings per
share (cents)
Reconciliation
between earnings
and headline
earnings per
share (cents):
Profit 39 148 27 259 66 407 26 559
attributable to
ordinary
shareholders
Adjusted for
profit on sale of (21) - (21) (142)
property, plant
and equipment
Profit on
Disposal of (-) - - (4 019)
Investment in
AMETSA
_________ _________ _________ _________
Headline earnings 39 127 27 259 66 386 22 398
_________ _________ _________ _________
Main assumptions and comments on the forecast financial information
Assumptions considered to be significant are disclosed below, however, the
assumptions disclosed are not intended to be an exhaustive list.
Assumptions that are under the control of the directors:
Forecast revenue for 2009 is based on the directors` best estimates for the 6
months remaining of the current financial year which take into account market
trends over the financial year as well as historic trends over the same period
over the last 5 years. Over 50% of the forecast turnover for 2009 is certain.
The forecast to 28 February 2009 includes interim results at 31 August 2008
The directors have made their best efforts to accurately forecast prices and
volumes of commodities pertinent to their respective industry sectors. No
revenue amount forecast for the remainder of 2009 is certain.
Revenue has grown at an annual rate in excess of 20% per annum historically.
Gross profit %`s are commodity and division specific and have been forecast per
commodity based on the directors best estimate assumptions based on historical
experience and future expectations of commodity prices.
Gross Profit Margins are expected to decline in the second half of the year but
are expected to remain above margins experienced in the 2008 year.
Operating costs have been forecast taking into account factors such as
historical trends, inflation, assumed growth of the business and improvements in
infrastructure to accommodate such growth eg new staff
Taxation has been provided for at 28%
No allowance for revenue growth arising from any strategic company acquisitions
has been allowed for in the forecast.
Allowance has also been made for the effect of Insimbi`s 49% shareholding in
it`s associate ("Insimbi Thermal Insulation (Pty) Ltd") including rental and
management fee revenue.
Allowance has also been made for the effect of Insimbi`s 100% shareholding in
it`s subsidiary ("Insimbi Aluminium Alloys (Pty) Ltd") including rental and
management fee revenue. We have assumed production and sales of 650 tons of
finished aluminum products per month which is approximately 50% of the capacity
of the plant.
The company enters into forward exchange contract or hedging arrangements on all
imports but we have assumed a foreign exchange loss due to unavoidable
extensions of R902,000 in 2009
That credit control will remain strong and we will experience no significant
doubtful debts during the course of the 2009 financial year.
That in line with previous years, we will provide R3.0 million write-down for
slow moving stock. This is in line with our policy of writing all stock over 365
days old, down to 1 cent.
Assumptions that are outside the control of the directors:
Interest rates and exchange rates will not vary materially in the forecast
periods and we have assumed a prime interest rate of 15.5% per annum and an
average exchange rate of R7.50 : US$1.00
Trading conditions are not expected to vary materially in the forecast periods.
That there will be no material change to the business of Insimbi or in the
manner in which it conducts it`s business
That there will be continuity in it`s management and trading policies, these
have been successful in the past and we expect them to remain so in the future.
29 September 2008
Designated Advisor: PricewaterhouseCoopers Corporate Finance (Proprietary)
Limited
Date: 29/09/2008 09:10:02 Produced by the JSE SENS Department.
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