|
AFT
AFT
AFT - Afrimat Limited - Reviewed Condensed Provisional Consolidated Financial
Results For the year ended 28 February 2009
Afrimat Limited ("Afrimat" or "the group")
(Incorporated in the Republic of South Africa)
Registration Number: 2006/022534/06
Share Code: AFT
ISIN Code: ZAE000086302
Reviewed Condensed Provisional Consolidated Financial Results for the year
ended 28 February 2009
CONDENSED CONSOLIDATED INCOME STATEMENT
Reviewed Audited
2009 2008 Change
R`000 R`000 %
Revenue 687 091 611 660 12,3
Cost of sales (525 377) (435 357)
Gross profit 161 714 176 303
Other income 5 054 8 504
Operating expenses (71 720) (47 690)
Operating profit 95 048 137 117 (30,7)
Investment revenue 4 521 6 031
Finance costs (13 223) (9 176)
Profit before taxation 86 346 133 972 (35,5)
Taxation (28 249) (38 562) (26,7)
Profit attributable to 58 097 95 410 (39,1)
shareholders
Attributable to:
Ordinary shareholders 57 703 94 950
Minority interest 394 460
58 097 95 410
Reconciliation of headline
earnings:
Profit attributable to ordinary 57 703 94 950
shareholders
Profit on disposal of property, (3 682) (3 268)
plant and equipment
Profit on disposal of subsidiaries (1 372) (2 386)
Impairment of goodwill 110 862
Impairment of mining rights - 1 368
Total tax effects of adjustments 1 316 1 022
54 075 92 548 (41,6)
Reconciliation of core headline
earnings
(as defined):
Headline earnings 54 075 92 548
Transaction costs of BEE 3 329 -
shareholders change
Losses of start-up operations 17 999 3 421
Total tax effects of adjustments (5 695) (992)
69 708 94 977 (26,6)
Shares in issue:
Total shares in issue 133 762 412 133 762 738
Treasury shares (855 829) (119 563)
Net shares in issue 132 906 583 133 643 175
Net shares in issue:
March 133 643 175 124 299 497
April 133 643 175 124 299 497
May 133 625 365 124 299 497
June 133 615 257 133 762 738
July 133 576 909 133 762 738
August 133 571 909 133 762 738
September 133 571 909 133 762 738
October 133 571 909 133 762 738
November 133 544 409 133 762 738
December 133 532 909 133 762 738
January 132 957 909 133 699 113
February 132 906 583 133 643 175
Weighted average number of net 133 480 118 131 381 662 1,6
shares in issue
Earnings per ordinary share 43,2 72,3 (40,2)
(cents)
Headline earnings per share 40,5 70,4 (42,5)
("HEPS") (cents)
Core HEPS (cents) 52,2 72,3 (27,8)
CONDENSED CONSOLIDATED BALANCE SHEET
Reviewed Audited
2009 2008
R`000 R`000
Assets
Non-current assets
Property, plant and equipment 382 539 309 675
Intangible assets 15 139 15 771
Goodwill 101 332 96 395
Other financial assets 3 728 3 978
Retirement benefit asset 11 792 11 059
514 530 436 878
Current assets
Inventories 75 402 59 691
Current tax receivable 10 593 4 551
Trade and other receivables 132 367 120 474
Cash and cash equivalents 21 689 38 820
240 051 223 536
Total assets 754 581 660 414
Equity and liabilities
Equity
Share capital 1 340 1 340
Share premium 325 170 326 116
Business combination adjustment (105 (105
788) 788)
Treasury shares (4 120) (887)
Net issued share capital 216 602 220 781
Other reserves 2 260 935
Retained income 272 077 242 485
Attributable to equity holders of parent 490 939 464 201
Minority interest 2 830 701
Total equity 493 769 464 902
Liabilities
Non-current liabilities
Borrowings long-term 58 202 27 420
Deferred tax 53 713 49 096
Provisions 12 009 8 522
123 924 85 038
Current liabilities
Borrowings short-term 42 919 37 045
Current tax payable 7 307 13 565
Trade and other payables 73 265 58 610
Bank overdraft 13 397 1 254
136 888 110 474
Total liabilities 260 812 195 512
Total equity and liabilities 754 581 660 414
Net asset value per share (cents) 369 348
CONDENSED CONSOLIDATED CHANGES IN EQUITY
Reviewed Audited
2009 2008
R`000 R`000
Attributable to equity holders of parent
Balance at the beginning of year 464 201 298 081
Issue of shares - 95
Premium/(adjustment) on shares issued (946) 80 690
Movement in treasury shares purchased (3 233) (887)
Other items 1 327 635
Profit for the year 57 703 94 950
Dividends paid (28 113) (9 363)
Total changes 26 738 166 120
Balance at the end of year 490 939 464 201
Minorities
Balance at the beginning of year 701 25
Disposal equity adjustments 1 735 216
Profit for the year 394 460
Total changes 2 129 676
Balance at the end of year 2 830 701
Total equity 493 769 464 902
CONDENSED CONSOLIDATED SEGMENT REPORT
Reviewed Audited
2009 2008
R`000 R`000
Revenue
External sales
Aggregates 392 946 364 726
Readymix Concrete 194 370 157 500
Concrete Manufactured Products 99 775 89 434
687 091 611 660
Intersegment sales
Aggregates 46 725 37 359
Readymix Concrete 688 4 574
Concrete Manufactured Products 7 623 439
55 036 42 372
Total revenue
Aggregates 439 671 402 085
Readymix Concrete 195 058 162 074
Concrete Manufactured Products 107 398 89 873
742 127 654 032
Operating profit before tax
Aggregates 57 062 102 082
Readymix Concrete 17 098 15 330
Concrete Manufactured Products 20 402 13 560
Other 486 6 145
95 048 137 117
Operating profit margins on external revenue
(%)
Aggregates 14,5% 28,0%
Readymix Concrete 8,8% 9,7%
Concrete Manufactured Products 20,4% 15,2%
13,8% 22,4%
Other Information
Assets
Aggregates 464 478 411 980
Readymix Concrete 64 759 53 196
Concrete Manufactured Products 58 300 39 303
Other 167 044 155 935
754 581 660 414
Liabilities
Aggregates 129 013 85 738
Readymix Concrete 28 240 26 332
Concrete Manufactured Products 13 933 5 445
Other 89 626 77 997
260 812 195 512
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
Reviewed Audited
2009 2008
R`000 R`000
Cash flows from operating activities
Cash generated from operations 119 479 114 506
Interest income 4 495 6 011
Dividends received 26 19
Finance costs (13 223) (9 176)
Tax paid (38 190) (39
937)
Net cash from operating activities 72 587 71 423
Acquisition of property, plant and equipment (122 (60
269) 484)
Proceeds on sale of property, plant and 21 742 11 046
equipment
Proceeds/(purchase) of financial asset (29) 44 353
Acquisition of businesses (7 803) (113
571)
Proceeds on sale of businesses 4 002 6 344
Cash flows from investing activities (104 (112
357) 312)
Proceeds and premium/(adjustment) on share (946) 58 284
issue
Purchase of treasury shares (3 233) (887)
Net movement in borrowings 34 788 (9 984)
Dividends paid (28 113) (9 363)
Net cash from financing activities 2 496 38 050
Total cash movement for the year (29 274) (2 839)
Cash at the beginning of year 37 566 40 405
Total cash at the end of year 8 292 37 566
Notes
Reviewed Audited
2009 2008
R`000 R`000
1. Dividends
- Interim dividend paid 6 688 9 363
- Declared final dividend 10 701 21 402
17 389 30 765
2. Capital commitments
- Approved capital expenditure to be funded 43 327 72 486
from surplus cash and bank financing
3. Depreciation 37 613 33 306
4. Net movement in borrowings
- Opening balance 64 465 38 357
- New borrowings 89 897 32 027
- Acquired through acquisitions 1 869 36 093
- Repayments (55 110) (42 012)
- Closing balance 101 121 64 465
New borrowings utilised to fund part of the
acquisition of property, plant and
equipment. Borrowings remain below the limit
set by the board of directors. The effect of
the increased borrowings has no material
impact on earnings per share and HEPS.
5. Business acquisition
Business combination included during the
year is 100% of Sunshine Crushers (Pty)
Limited, from 1 August 2008.
Amounts included are as follows:
Sunshine
Crushers
R`000
Carrying amount of net assets
- Plant and equipment 6 268
- Other (3 910)
2 358
Fair value of assets
- Plant and equipment 6 268
- Other (3 910)
2 358
Goodwill 5 723
Purchase consideration in cash 8 081
Profit after tax included in results 1 093
Pro forma profit after tax assuming business 2 619
combinations for full year
Pro forma revenue assuming business 9 755
combinations for full year
6. Business disposals
Business disposals during the year were 7,3%
of Brickrush (Pty) Limited, from 1 March
2008, and 15,0% of AFT Aggregates (Pty)
Limited, from 1 May 2008.
7,3% 15% AFT
Brickrush Aggregates
R`000 R`000
Carrying amount of net assets
- Plant and equipment 324 -
- Other 1 243 168
1 567 168
Fair value of assets
- Plant and equipment 324 -
- Goodwill 806 -
- Other 1 243 168
2 373 168
Proceeds on disposal 3 834 168
Profit after tax included in results
- Profit/(loss) on disposal of businesses 1 199 (24)
- Profit after tax for period to disposal - 3
date
1 199 (21)
7. Other
No material subsequent events occurred
between the balance sheet date and the date
of this announcement.
A total of 736 266 shares were repurchased
during the year and are held as treasury
shares.
No material changes in contingent
liabilities occurred during the year.
COMMENTARY
Introduction
The directors hereby present the reviewed condensed provisional consolidated
financial results for the year ended 28 February 2009 ("the year"). While the
group`s operations were impacted during the year by the economic downturn
resulting from the international financial crisis, a satisfactory performance
from the Readymix Concrete and Concrete Manufactured Products operations
offset this to an extent.
A number of organic capacity-enhancement initiatives were successfully
completed to position Afrimat to capitalise on infrastructure projects. These
included further expanding the group`s national footprint into Gauteng,
Limpopo and Mpumalanga and the acquisition of Sunshine Crushers in KwaZulu-
Natal.
Financial Results
The Sunshine Crushers acquisition has been included for seven months from the
effective date of 1 August 2008. The Malans/Denver and Scottburgh quarries
("the quarries"), acquired in the previous year ended 29 February 2008 ("the
previous year"), have been included for the full year. Comparative results
for the previous year reflect the results of the quarries for nine months and
eight months from the effective dates of acquisition, respectively.
Revenue increased year-on-year to R687,1 million from R611,7 million. However
headline earnings were adversely impacted by a number of macro-economic and
extraordinary factors including: lower aggregates volumes; once-off start-up
expenses at new operations which position the group for future growth; once-
off transaction costs relating to changes in BEE shareholding ("BEE costs")
and significantly increased diesel costs in the first half of the financial
year, which also pressured operating margins.
Core headline earnings
Core headline earnings are defined as headline earnings excluding once-off
start-up and BEE costs as well as non-recurring expenses, and therefore offer
a more meaningful comparison year-on-year. Core headline earnings of R69,7
million reflect a decrease of 26,6% from R94,9 million in the previous year.
Core HEPS declined from 72,3 cents in the previous year to 52,2 cents.
Headline earnings
Headline earnings decreased by 41,6% to R54,1 million and HEPS by 42,5% to
40,5 cents.
Operational Review
"Aggregates" performed below expectations against the backdrop of tough
trading conditions. Demand in the Western Cape slowed in line with the
province`s economic decline, which resulted in lower volumes. This was
compounded by delays in municipal authorisation of projects, unusually low
expenditure on infrastructure budget by the provincial government and a
severe slowdown in residential property development.
Although the division`s performance improved in the third quarter of the
financial year, it deteriorated in the fourth quarter due to the traditional
month-long `builder`s holiday` and the further delay in off-take of large-
scale infrastructure projects to April 2009.
The KwaZulu-Natal operations were also impacted by once-off production cost
pressures and changes in product mix.
In contrast following the commissioning of the new plant the Denver quarry,
which supplies the Port Elizabeth metropole, performed exceptionally well
throughout the year.
Afrimat further secured the rights to supply large-scale projects in Gauteng,
Limpopo and Mpumalanga. Processing plants have been established in these
regions and are now fully operational. These are well-placed to supply
government infrastructure projects and significantly boost the division`s
revenue going forward.
"Readymix Concrete" posted a satisfactory performance, benefitting from
higher volumes as a result of exposure to increased government infrastructure
development.
"Concrete Manufactured Products" similarly leveraged ongoing government
housing projects to record increased volumes.
BUSINESS EXPANSION
New business development is a key component of the group`s growth strategy. A
dedicated team continues to explore opportunities in existing markets as well
as in provinces where high infrastructure spending is projected.
Dividend
A final dividend of 8,0 cents per share (2008: 16,0 cents) has been declared
for the year in line with the group`s dividend policy of 3 times cover.
Despite the performance during the reporting period, the board has decided to
declare the final dividend as the cash position of the group has improved
since the financial year-end and in anticipation of future growth (See
`Dividend declaration` below).
Prospects
Government`s commitment to infrastructure investment continues to stimulate
ongoing demand for Afrimat`s products, from which the group expects to derive
increased volumes.
Business activities in the current year ending 28 February 2010 are expected
to improve significantly as large-scale infrastructure projects gather
momentum and the benefits of the group`s aggressive efficiency improvement
programme begin to be realised.
Basis of preparation
The reviewed condensed provisional consolidated financial statements for the
year have been prepared in compliance with International Financial Reporting
Standards (IFRS), IAS 34 and the South African Companies Act 1973. The
accounting policies and method of measurement and recognition applied in
preparation of these reviewed condensed provisional consolidated financial
statements are consistent with those applied in the group`s most recent
audited annual financial statements for the previous year.
Adjustments to the split of cost of sales/operating expenses were made to be
consistent with current disclosure.
Auditor`s review
The condensed provisional consolidated financial statements for the year have
been reviewed by the company`s auditors, Mazars Moores Rowland. Their
unmodified review opinion is available for inspection at the company`s
registered office.
On behalf of the board
MW von Wielligh AJ van Heerden
Chairman Chief Executive Officer
13 May 2009
DIVIDEND DECLARATION
Notice is hereby given that a final dividend, No. 4 of 8,0 cents per share,
in respect of the year ended 28 February 2009, was declared on Wednesday, 13
May 2009. Relevant dates are as follows:
Last day to trade cum dividend Friday, 29 May 2009
Commence trading ex dividend Monday, 1 June 2009
Record date Friday, 5 June 2009
Dividend payable Monday, 8 June 2009
Share certificates may not be dematerialised or rematerialised between
Monday, 1 June 2009 and Friday, 5 June 2009, both dates inclusive.
By order of the board
Routledge Modise Attorneys
Company secretary
13 May 2009
Directors:
MW von Wielligh*^ (Chairman), AJ van Heerden (CEO), HP Verreynne (Financial
Director), PG Corbin, L Dotwana*, F du Toit*, M Kaplan*^, HJE van Wyk*^
*Non-executive director ^Independent
Registered office:
Tyger Valley Office Park No. 2, Corner Willie van Schoor Avenue and Old Oak
Road, Tyger Valley, 7530
Sponsor:
Bridge Capital Advisors (Pty) Limited, 27 Fricker Road, Illovo, 2196
(PO Box 651010, Benmore, 2010)
Transfer secretaries:
Computershare Investor Services (Pty) Limited, 70 Marshall Street,
Johannesburg, 2001 (PO Box 61051, Marshalltown, 2107)
Company secretary:
Routledge Modise Attorneys, 2nd Floor Wanderers Building, The Campus, 57
Sloane Street, Bryanston, 2021 (PO Box 78333, Sandton City, 2146)
Date: 14/05/2009 07:05:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
