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WNH
WNH
WNH - Winhold - The Reviewed Abridged Consolidated Results Of The Group For
The Year Ended 30 September 2008 and dividend declaration
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share code: WNH) & (ISIN number: ZAE000033916)
Statement of results
The reviewed abridged consolidated results of the Group for the year ended 30
September 2008
Highlights
- Operating profit up by 31,7 %
- Profit after tax up by 25,2 %
- Headline earnings per share up by 17,4 %
- Earnings per share up by 18,2 %
- Dividend 9,0 cents per share, up by 20 %
Consolidated income statement
Year ended
30 September
`2008 `2007
R`000 R`000
Revenue 991 915 917 220
Operating profit 55 411 42 060
Investment income 21 711 22 283
Finance costs (35 498) (32 830)
Finance income 1 921 1 604
Profit before taxation 43 545 33 117
Taxation (7 099) (3 960)
Share of after tax profit of 681 497
associate companies
Net profit after taxation 37 127 29 654
Attributable to outside (5 334) (2 850)
shareholders
Ordinary shareholders` profit 31 793 26 804
Earnings 31 793 26 804
Headline earnings 31 376 26 768
EBITDA 68 712 53 802
Earnings per ordinary share ( 25,3 21,4
cents )
Headline earnings per ordinary 25,0 21,3
share ( cents )
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 )
Ordinary shares in issue (000`s ) 126 215 126 215
Dividend per ordinary share 9,0 7,5
(cents)
Reconciliation of headline
earnings
Ordinary shareholders` profit 31 793 26 804
Net (profit) / loss on disposal (515) (98)
of fixed assets
Taxation effect on disposals 98 62
Headline earnings for the year 31 376 26 768
Reconciliation of Earnings before
interest, tax, depreciation and
amortisation ( "EBITDA" )
Profit from operations 55 411 42 060
Depreciation and Amortisation of 13 301 11 742
intangibles
EBITDA 68 712 53 802
Summarised consolidated balance sheet
Year ended
30 September
`2008 `2007
R`000 R`000
ASSETS
Property plant and equipment 128 423 119 102
Trade marks and patents 2 338 1 506
Investments 160 788 160 788
Investments in associates 1 440 1 015
Goodwill 26 541 26 541
Deferred taxation 2 247 1 771
Current assets
inventory 165 608 138 678
receivables 196 075 176 833
bank and cash 12 826 22 980
Total assets 696 286 649 214
EQUITY AND LIABILITIES
Ordinary share capital and 122 793 122 793
premium
Retained earnings 116 536 94 209
Shareholders` interest 239 329 217 002
Outside shareholders` interest 10 196 4 862
Total Equity 249 525 221 864
Non-current liabilities
interest bearing 185 651 193 736
interest free 1 083 1 531
deferred taxation 6 135 5 198
Current liabilities
bank overdraft 28 797 23 652
short term borrowings 21 727 19 908
Current liabilities - interest
free
payables 199 008 183 061
taxation 4 360 264
Total equity and liabilities 696 286 649 214
Supplementary information
Capital commitments 8 302 15 383
Capital expenditure 24 076 37 015
Depreciation 13 301 11 742
Interest bearing borrowings 240 651 237 296
Interest earning deposits 13 573 22 826
Net asset value per ordinary 189,6 171,9
share ( cents )
Net tangible asset value per 166,7 149,7
ordinary share ( cents )
Summarised consolidated cash flow statement
Year ended
30 September
`2008 `2007
R`000 R`000
Cash flow (used in) / from 13 953 23 107
operating activities
Profit before interest, tax and 76 117 61 507
non-cash items
Increase in inventory (26 930) (13 886)
Increase in receivables (5 333) (4 946)
Increase in payables 3 317 14 335
Cash flow from operations 47 171 57 010
Net finance costs (21 466) (18 682)
Share of results from associates 256 211
Taxation paid (2 542) (6 597)
Dividends paid (9 466) (8 835)
Cash flow used in investing (22 939) (36 071)
activities
Investment in fixed assets (24 076) (37 015)
Buy out of minorities in a - (68)
subsidiary
Proceeds from disposal of fixed 1 137 1 012
assets
Cash flow from financing (6 313) 13 891
activities
Interest bearing borrowings 11 261 31 452
raised
Interest bearing borrowings (17 574) (17 561)
repaid
Net (decrease) / increase in cash (15 299) 927
& cash equivalents
Cash and cash equivalents at (672) (1 599)
beginning of period
Cash and cash equivalents at end (15 971) (672)
of period
Summarised consolidated statement of changes in equity
Year ended
30 September
`2008 `2007
R`000 R`000
Shareholders` funds at beginning 217 002 199 033
of the year
Changes in retained earnings 31 793 26 804
Dividends paid (9 466) (8 835)
Shareholders` interests at end of 239 329 217 002
the year
Segment information
Business Mining Industrial Flexible
Segments Consumables Consumables Plastics
(R`000 )
2008 2007 2008 2007 2008 2007
R`000
Revenue 345 222 341 333 159 681 137 552 484 894 437 191
Operating 14 294 6 170 10 271 6 328 31 511 29 270
Profit/(loss)
Investment - - - - - -
Income
Depreciation 1 127 1 085 710 619 9 666 9 103
Capital 757 1 263 1 062 1 442 20 438 7 165
Expenditure
Total Assets 143 125 124 264 55 738 45 358 266 668 246 774
Total 82 384 70 558 26 172 20 833 159 705 152 168
Liabilities
Business Property Totals
Segments and other
(R`000 )
2008 2007 2008 2007
R`000
Revenue 2 118 1 144 991 915 917 220
Operating (665) 292 55 411 42 060
Profit/(loss)
Investment 21 711 22 283 21 711 22 283
Income
Depreciation 1 798 935 13 301 11 742
Capital 1 819 27 145 24 076 37 015
Expenditure
Total Assets 230 756 232 818 696 286 649 214
Total 178 500 183 791 446 761 427 350
Liabilities
COMMENTS
GROUP PROFILE
Winhold Limited ("Winhold") is a holding company with its main investments
being wholly owned subsidiaries Gundle Limited ("Gundle") and Inmins Limited
("Inmins"), and a 50,1% holding in Novara Profile Extrusions (Pty) Limited
("Novara").
Gundle is comprised of two manufacturing / distribution operations in Gauteng
and one in Swaziland, with a further four distribution centres in the main
coastal cities and Bloemfontein.
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 products out of recycled PET plastic.
REVIEW OF RESULTS
The group produced the best ever results in its history during the past
financial year. This achievement is pleasing considering the volatility of,
and massive increases in polymers and steel prices, interest rate increases,
implementation of the National Credit Act, high inflation rates, increased
fuel costs and the weakening of the economy in general.
All of the increased input costs could not be recovered in price increases
due to severe competition and market resistance. Fortunately improved
efficiencies, cost cutting, and elimination of some loss makers contributed
to improved results.
Operating profit increased by 31,7% to R55,4 million (2007: R42,1 million).
Revenue grew by 8,1% to R992 million (2007: R917 million).
Headline earnings per share increased by 17,4% to 25,0 cents per share (2007:
21,3 cps). Headline earnings were R31,4 million (2007: R26,8 million ).
Earnings per share increased by 18,2% to 25,3 cents per share (2007: 21,4
cps). Earnings were R31,8 million (2007: R26,8 million),
Income from investments amounted to R21,7 million (2007: R22,3 million).
Net interest paid has increased to R33,6 million (2007: R31,2 million).
Net profit after tax increased by 25,2% to R37,1 million.
During the financial year there was a net operational cash in-flow of R13,9
million rand. However this was offset by the investment in fixed assets and
the repayment of long term loans, resulting in a net cash out-flow for the
year of R15,3 million.
The high gearing is due to the 10 year loan raised to finance the BEE
transaction in February 2006, and will reduce as the loan is repaid.
Operational gearing is 34,7% (2007: 38%).
OPERATIONAL REVIEWS
Inmins
Inmins produced its best ever profits and increased its operating profit year
on year by 96,5% in spite of the fact that the turnover only increased by
5,4%. Seven out of the fourteen operations recorded an all time record in
profitability. New opportunities were explored, costs controlled, and two
loss making operations in the previous year were turned around.
One of the Inmins joint ventures, Zenzele Industrial Supplies (Proprietary)
Limited, based in Pinetown, once again had a record year.
Gundle
Gundle produced record profits and increased its operating profit year on
year by 7,6%. Although raw material supply normalised during the year,
volatility in pricing made it difficult to maintain margins. Delays in
delivery of new equipment caused budgeted improvements to be delayed. Loss
making operations were addressed. In a tough year the operations did well.
One factory and two branches produced best ever results.
Novara
Additional products and product improvements were developed. Market
conditions remain difficult. The first production line orders have been
received which should culminate into more substantial orders during the
second half of the new financial year. The operation which started as a
greenfield project, should then be profitable. New prospects will be
continuously explored.
PROSPECTS
The group will continue to investigate growth opportunities and, when
necessary, will implement actions to continue its profitability growth even
in adverse market conditions.
Subsequent to the year end a decision was taken to stop manufacturing in a
loss making operation, and the plant has been sold. As a consequence thereof
future losses in this operation will be eliminated.
Repositioning of product profiles; the amalgamation of two factories into
one (which took place during July/August 2008) saved overheads, which should
improve Gundle`s future profitability
Commissioning of new equipment in Gundle during February 2009 should impact
favourably during the second half of the 2009 financial year.
Delayed expansion and curtailed production in the gold- and platinum mining
sectors due to the reduction in commodity prices could impact negatively on
Inmins next year, however new opportunities and the introduction of
additional products are continuously explored and implemented by a proactive
management team.
Novara should be profitable in the second half of next year.
CAPITAL COMMITMENTS
The amount of R8,3 million reflected in the supplementary information,
relates to plant and equipment for existing operations.
BASIS OF PREPARATION
These abridged consolidated group results have been prepared in accordance
with the recognition and measurement criteria of International Financial
Reporting Standards ("IFRS") and the accounting standards applicable to
International Accounting Standard 34 (" IAS 34"), and in compliance with the
Companies Act, as amended, and the Listings Requirements of the JSE Limited (
"the Listings Requirements" ). The accounting policies are consistent with
those used in the prior year.
AUDIT
The financial information set out in these abridged consolidated group
results has been reviewed by BDO Spencer Steward (Johannesburg) Inc. Their
review opinion is available for inspection at the registered office of the
company. The annual report will be posted to shareholders in February 2009.
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 Listings Requirements. The group endeavours to conduct its
business in accordance with the principles of accountability, transparency
and integrity.
DIRECTORATE
Since the financial year end the following changes have taken place:
- Independent non executive director, Ms Nosisa Fubu, resigned due to work
commitments. She has also therefore resigned from the audit and remuneration
committees;
- the Executive Chairman, Mr WAR Wenteler, has resigned as a member of the
Audit Committee in order to comply with the Companies Act, as amended.
DECLARATION OF DIVIDEND
Notice is hereby given that an ordinary dividend of 9,0 cents (2007 : 7,5
cents) per share for the year ended 30 September 2008 has been declared to
holders of ordinary shares recorded in the share register of the company at
the close of business on 20 February 2009.
In compliance with the requirements of STRATE, the following dates are
applicable :
Last day to trade "cum" dividend is : Friday 13 February 2009
Commence trading "ex" dividend from : Monday 16 February 2009
Record date is : Friday 20 February 2009
Payment date is : Monday 23 February 2009
Share certificates may not be de-materialised / re-materialised between
Monday 16 February 2009 and Friday 20 February 2009, both dates inclusive.
Ordinary individual shareholders to whom a dividend of less than R10,00 ( ten
rand ) has been declared, are reminded that in terms of a special resolution
registered on 26 March 2003, such amounts shall not be paid to the individual
shareholders concerned but shall be donated to an independent charity chosen
by the directors.
The dividend cover is 2,8.
On behalf of the board
WAR WENTELER D B MOSTERT
Chairman Deputy Chairman
Date : 08 December 2008
Directors :
WAR Wenteler (Chairman),
DB Mostert (Deputy Chairman) #, W Fourie (Financial), PJ Kruger, NP
Mnxasana #,
(# 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 11 480 8500
Fax : +27 11 480 8556
(Email : dougg@arcaymoela.co.za)
Auditors :
BDO Spencer Steward (Johannesburg) Inc
13 Wellington Road, Parktown, 2193
Telephone: +27 11 488 1700
Fax: +27 11 488 1701
(Pvt Bag X60500, Houghton, 2041)
( Email : bdojhb@bdo.co.za )
Date: 08/12/2008 17:03:17 Produced by the JSE SENS Department.
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