| Fri 8 May 2009, 16:21 | | WES - Wesco - Audited results for the 12 months ended 31 March 2009 |
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WES
WES
WES - Wesco - Audited results for the 12 months ended 31 March 2009
WESCO INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number 1968/005871/06
ISIN: ZAE 000007928 JSE Share code: WES
("Wesco", "the group" or "the company")
Audited results for the 12 months ended 31 March 2009
ABRIDGED GROUP INCOME Audited Audited
STATEMENT year ended year ended
31 March 31 March
R000 2009 2008
Continuing operations:
Income 18 797
Administrative expenses (1 056) (1 064)
Profit/(loss) before taxation 17 741 (1 064)
Taxation (187 681) (26 971)
Loss for the year from continuing
operations (169 940) (28 035)
Discontinued operations:
Profit before taxation 999 536 182 591
Taxation (87 187) (70 004)
Profit for the year from discontinued
operations 912 349 112 587
Profit for the year 742 409 84 552
Attributable to:
Equity holders of the company 742 409 85 722
Minority interest (1 170)
742 409 84 552
Per share information - cents
Earnings from continuing operations:
Basic earnings and headline earnings (2 013) (332)
Earnings from discontinued operations:
Basic earnings 10 808 1 348
Disposal of investments:
- profit on disposal (11 605) (1 600)
- attributable taxation 1 018 232
Headline earnings 221 (20)
Net retirement benefit fund surpluses
utilised 670
Adjusted headline earnings 221 650
Dividends paid 21 700 8 400
ABRIDGED GROUP CASH FLOW Audited Audited
STATEMENT year ended year ended
31 March 31 March
R000 2009 2008
Dividends received 7 699 26 425
Interest received 25 242 35 119
Dividends paid to shareholders (1 831 871) (709 111)
Dividends paid to minority shareholders (11 705)
Normal taxation paid (90 696) (69 287)
Secondary tax on companies paid (182 418) (68 170)
Other operating cash flows (2 709) (4 032)
Net cash used in operating activities (2 074 753) (800 761)
Net proceeds on disposal of investments 2 144 580 843 668
Increase in cash and cash equivalents 69 827 42 907
Cash and cash equivalents at end of the
year 121 340 79 055
ABRIDGED GROUP BALANCE Audited Audited
SHEET 31 March 31 March
R000 2009 2008
Assets
Non-current assets 1 157 229
Investment in associate 1 153 671
Property and equipment 3 558
Current assets 121 406 79 067
Total assets 121 406 1 236 296
Equity and liabilities
Capital and reserves 119 694 1 209 156
Minority interest 66 66
Current liabilities 1 646 27 074
Total equity and liabilities 121 406 1 236 296
Net asset value per share - cents 1 418 14 323
Number of ordinary shares in issue (000) 8 441.8 8 441.8
ABRIDGED STATEMENT OF Audited Audited
CHANGES IN EQUITY year ended year ended
31 March 31 March
R000 2009 2008
Share capital
Balance at beginning and end of the year 11 752 11 752
Non-distributable reserve 20 1 001 456
Balance at beginning of the year 1 001 456 1 125 573
Reserves realised on disposal of investments (1 008 992) (117 572)
Transfers to retained earnings 7 556 (6 545)
Retained earnings 107 922 195 948
Balance at beginning of the year 195 948 812 792
Profit for the year 742 409 85 722
Reserves realised on disposal of investments 1 008 992
Dividends (1 831 871) (709 111)
Transfers from non-distributable reserves (7 556) 6 545
Total capital and reserves 119 694 1 209 156
Minority interest 66 66
Balance at beginning of the year 66 12 941
Loss for the year (1 170)
Dividends paid (11 705)
Total equity 66 1 209 222
NOTES
Accounting policies
These 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 have been applied consistently with those of the previous
year.
Discontinued operations
Following the disposal on 28 August 2008 of the investments in associate Toyota
South Africa (Proprietary) Limited, and subsidiaries Wesco Bestuursmaatskappy
(Proprietary) Limited and Wesco House (Proprietary) Limited, these segments
have been classified as discontinued in the current year. Comparative amounts
have been restated accordingly.
Results from discontinued operations are as follows:
(R000) 2009 2008
Income from investments 6 593 39 950
Administrative expenses (1 938) (7 805)
Share of associate`s income 15 250 15 389
Net profit of discontinued operations before profit
on disposal 19 905 47 534
Profit on disposal of associate 977 068
Profit on disposal of subsidiaries 2 563
Profit on disposal of available-for-sale financial
assets 135 057
Profit from discontinued operations before taxation 999 536 182 591
Taxation attributable to discontinued operations (87 187) (70 004)
Profit for the year 912 349 112 587
COMMENT
Wesco`s results for the year under review reflect the disposal of its 25%
interest in Toyota South Africa (Pty) Ltd, as approved by shareholders in
general meeting on 4 August 2008. Gross sale proceeds of R2,139 billion were
received on 28 August 2008. The effective date for accounting purposes was 30
June 2008, and the income statement includes Wesco`s share of the associate`s
results up to that date.
In addition, two wholly-owned subsidiaries, Wesco House (Pty) Ltd and Wesco
Bestuursmaatskappy (Pty) Ltd, were sold for a total consideration of R6,38
million, effective 28 August 2008.
A dividend of R217.00 per share was subsequently paid to shareholders on 8
September 2008.
The taxation charge in continued and discontinued operations in the income
statement respectively includes secondary tax on companies on the dividend
paid, and capital gains tax on sale of investments.
OUTLOOK
Having sold the majority of its assets, Wesco has been classified as a cash
shell in terms of the JSE Listings Requirements. New investments are not
envisaged, and as a result a proposed scheme of arrangement in terms of the
section 311 of the Companies Act was announced on 15 April 2009, which, if
approved, will lead to the purchase of scheme participants` shares and eventual
delisting and winding up of the company. Full details of the proposed scheme
will be set out in a circular to shareholders, to be mailed in due course.
AUDIT REPORT
The results for the year have been audited by PricewaterhouseCoopers Inc. and
their unqualified audit report on the 31 March 2009 annual financial statements
is available for inspection at the company`s registered office.
ANNUAL REPORT
The annual report for the year ended 31 March 2009 will be mailed to
shareholders on or about 15 May 2009.
ANNUAL GENERAL MEETING
The 2009 annual general meeting will be held at the Arcay House, 3 Anerley
Road, Parktown, Johannesburg on Tuesday, 9 June 2009 at 10:00.
DIVIDEND
A dividend of 1 017 cents per share was declared on 15 April 2009.
On behalf of the board
E Le R BRADLEY G J STRYDOM
Chairman Chief Executive Officer
Johannesburg
8 May 2009
Registered office Registrar
Wesco House, 10 Anerley Road, Computershare Investor Services
Parktown, Johannesburg (Pty) Ltd
Telephone 011 646-3011 70 Marshall Street,
Facsimile 011 646-3022 Johannesburg 2001
(P O Box 61051,
Marshalltown 2107)
Postal address
P O Box 2077, Saxonwold 2132
E-mail: info@wesco.co.za
Website: www.wesco.co.za
Sponsor Auditors
Arcay Moela Sponsors (Pty) Ltd PricewaterhouseCoopers Inc.
Arcay House, 3 Anerley Road 2 Eglin Road, Sunninghill,
Parktown, Johannesburg Johannesburg
(P O Box 62397, Marshalltown 2107) (Private Bag X36, Sunninghill
2157)
Directorate: Executive director: G J Strydom (Chief Executive Officer)
Non-executive directors: 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
Date: 08/05/2009 16:21:01 Produced by the JSE SENS Department.
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