| Mon 29 Jun 2009, 13:00 | | MTE - Marshall Monteagle Holdings Societe Anonyme - Unaudited interims for 6 |
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MTE
MTE
MTE - Marshall Monteagle Holdings Societe Anonyme - Unaudited interims for 6
month period ended 31 march 2009 and dividend declaration
Marshall Monteagle Holdings Societe Anonyme
(Formerly Monteagle Holdings Societe Anonyme)
("Monteagle")
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)
Share Code: MTE ISIN Code: LU0035797272
Registered Office
6 rue Adolphe Fischer,
L-1520, Luxembourg
UNAUDITED INTERIMS FOR 6 MONTH PERIOD ENDED 31 MARCH 2009 AND DIVIDEND
DECLARATION
Interim Report 2009
We report for the six months to 31st March 2009 against a background of
worldwide economic uncertainty and a further weakening of the South African
rand, the area of significant group operations.
Results
* Group revenue is up 3% to US$58,105,000 for the six months to 31st March 2009,
compared to US$56,351,000.
* Operating profit on reduced margins has declined by 10% to US$2,450,000 from
US$2,709,000 last year.
* Headline earnings per share increased due to a lower amount of tax paid and a
reduction of outside interests from US 4.8 cents to US 4.9 cents (full year to
September 2008 - 14 cents).
* Interim dividend maintained at US 2.00 cents.
* Net assets decreased from US$3.57 per share (31st March 2008) to US$2.89 per
share. Net assets at 30th September 2008 were US$3.27 cents per share and have
reduced in the six months to March 2009 due to the decline in investment markets
and, as noted above, a further weakening of the South African rand. Marshall
Monteagle shares traded on 31st March 2009 at US$1.46, a discount in excess of
50 % to net asset value.
Food and Household Products
Our shipping and distribution business in food and household consumer products
achieved further growth during the six month period under review and we
anticipate maintaining these levels of trade during the second half of 2009.
This division continues to provide procurement, supply chain and risk management
services to multiple retailers, wholesalers and manufacturers in South Africa
and Australia and is complemented by dedicated producers of quality raw
materials, skilled technologists and first world production facilities.
We continue to operate in an extremely challenging environment with volatile raw
material and currency movements compounded by inconsistent demand and
significant global excess production capacity. It would appear that these
conditions will remain over the next six months and probably well into the 2010
financial year. We are well positioned to operate in these market conditions
and continually strive to anticipate our clients` needs and exceed their
expectations.
Tool and Machinery Products
Our tool and machinery distribution business in South Africa has been adversely
affected by the continued consumer slowdown and we have sold fewer power
generators than we did in the same period in 2008. Margins remain comparatively
healthy and improved working capital management has resulted in a favourable
cash-flow outlook for the remainder of the year. We have also curtailed
expenses in line with shrinking sales and a freeze on employment, overtime and
any shift work remains in place. We are confident that we have taken the
necessary steps to realign the business and remain optimistic that we can
capitalise on future opportunities such as selling into new markets in Sub-
Saharan Africa.
Our Australian tool and machinery operations have also been adversely affected
by the contracting economy and the relatively weak Australian Dollar during the
period. Overheads are being kept under tight control and despite the negative
short term outlook, with cash reserves we are well positioned to benefit when
the economy starts to recover.
Property Portfolio
Our large multi-tenanted industrial property in San Diego produced satisfactory
returns during the six month period; with our unit situated in a prime
industrial area we still enjoy a relatively low vacancy rate of 8%. However, we
are cautious about the short to medium term with demand for space in decline and
the unemployment rate in the state of California now as high as 11%.
The group`s portfolio of commercial and light industrial properties in South
Africa continues to produce satisfactory returns despite the slow-down in the
local property market. The portfolio`s vacancy levels remain below acceptable
norms. Future property valuations may decrease or remain static due to tenants
experiencing the effects of the global financial crisis.
Investment Portfolio
The US and European equity markets lost close to a third of their value during
the six months as nervous investors dumped stocks for risk free securities such
as Treasury bills. Our bearish stance on this asset class has led us to sell
down over US$4 million of equities since March 2008 which is reflected in our
high cash balances and in note 5 of the report, however, we as with most
investment houses had no idea of the severity of the situation that was going to
unfold. Despite values depreciating during the period, we remain invested in
quality companies in first world markets and have ample liquidity to take
advantage of future buying opportunities.
Merchant & Industrial Properties ("Merchant")
The offer of 33 Marshall shares for every 100 Merchant shares made on 13th March
2009 has been extended to 31st July 2009. To date acceptances have been
received in respect of 3,386,056 Merchant shares and Marshall accordingly now
owns 89.2% of the issued share capital of Merchant.
The new shares issued to Merchant shareholders in respect of acceptances for the
above offer, which were issued on 12th June 2009, will qualify for the interim
dividend. The effect of this will be to increase the cost shown in the
Statement of Changes in Equity from US$331,000 to US$353,000.
Conafex Holdings S.A. (unlisted associate)
Conafex terminated its listings in Luxembourg and South Africa in April 2009 to
conserve its limited funds in order to grow its underlying investments. It is
focused on agri and related businesses mainly in South Africa. The group is in
the process of rationalising some of its investments to concentrate on others
where there is growth potential.
Halogen Holdings S.A. (listed associate)
Halogen holds an investment in Heartstone Inns Limited, a U.K. based company
that owns and operates a chain of U.K. country pubs. Halogen is progressing
with its plans to move the group out of Luxembourg but has not yet made a formal
announcement of its intentions.
Net Assets
Assets outside Africa, net of minority interests and proposed dividends, stand
at US$28,259,000, equal to US$1.71 per share, the balance of US$1.18 were held
in South Africa. Our total net assets amount to US$2.89, which compares with a
market price of US$1.46.
Interim dividend
We are pleased to announce that the Company has declared an interim dividend of
US 2.0 cents per share payable on 7th August 2009 to shareholders on the
register at the close of business on 17th July 2009. The equivalent for 2008
was US 2.0 cents.
Last day to trade (JSE) Friday 10 July 2009
Shares trade ex dividend (JSE) Monday 13 July 2009
Shares trade ex dividend (LuxSE and LSE) Wednesday 15 July 2009
Record date (LuxSE, JSE and LSE) Friday 17 July 2009
Pay date Friday 7 August 2009
Currency conversion date Monday 29 June 2009
Shareholders are hereby advised that the exchange rate to be used will be US$
1.00 = R7.9075. This has been calculated as the average of the bid/ask spread
at the opening of business (United Kingdom time) on 29th June 2009.
Consequently the dividend of US 2.00 cents will be equal to 15.815 South African
cents.
No dematerialisation and rematerialisation of share certificates may take place
between Monday, 13 July 2009 and Friday 17 July 2009 or transfer of shares
between the registers in Luxembourg and SA and UK and SA may take place between
Monday 13 July 2009 and Friday 17 July 2009, both days inclusive.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made.
Prospects
The volatility in exchange rates continues to burden our operations and
investments although demand has remained encouraging for our trading companies.
We are hopeful that we can again produce satisfactory results for the full year.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
Consolidated group income statement
Half years ended Year
ended
31st March 30th
September
2009 2008 2008
Note Unaudited Unaudited Audited
s
US$000 US$000 US$000
Group revenue 2 58,105 56,351 109,559
Operating costs (55,655) (53,642) (102,736)
--------- --------- ---------
--- --- ---
Operating profit 2,450 2,709 6,823
Share of associated companies` (266) (389) (461)
results
Income from investments - dividends 156 162 525
- interest 71 174 527
Interest paid and similar charges (675) (678) (1,845)
Realised exchange (losses)/gains (296) 22 (318)
------- ------- -------
Profit on ordinary activities before 1,440 2,000 5,251
exceptional items and taxation
Exceptional items 3 (897) 1,556 1,214
------- ------- -------
Profit before taxation 2 543 3,556 6,465
Taxation (436) (653) (1,660)
------- ------- -------
Profit after taxation 107 2,903 4,805
Attributable to outside shareholders (453) (660) (1,623)
------- ------- -------
(Loss)/Profit attributable to (346) 2,243 3,182
shareholders
======= ======= =======
Interim dividend per share (US 2.00c 2.00c 2.00c
cents)
Recommended final dividend (US n/a n/a 3.00c
cents)
Reconciliation of headline earnings
per share
Basic (loss)/earnings per share (US 4 (2.1)c 13.6 c 19.2 c
cents)
Less exceptional items, net of tax 7.0c (8.8)c (5.2)c
and minority interests (US cents)
--------- --------- ---------
--- --- ---
Headline earnings per share (US 4 4.9c 4.8 c 14.0 c
cents)
======= ======= =======
Statement of changes in equity
Exchange differences 1,391) 3,487) (4,833)
Commercial property revaluations (87) - (43)
Group share of fair value adjustments on (3,701) (1,028) (5,510)
investments
--------- --------- ---------
--- --- ---
Net gains not recognised in the income (5,179) (4,515) (10,386)
statement
(Loss)/Profit attributable to (346) 2,243 3,182
shareholders
Final dividend approved for the prior (496) (438) (438)
year
Interim dividend declared (331) (331) (331)
--------- --------- ---------
--- --- ---
(6,352) (3,041) (7,973)
Shareholders` funds at start of period 54,088 62,061 62,061
--------- --------- ---------
--- --- ---
Shareholders` funds at end of period 47,736 59,020 54,088
======= ======= =======
Consolidated group balance sheet
31st March 30th
September
2009 2008 2008
Unaudited Unaudited Audited
US$000 US$000 US$000
Non-current assets
Property, plant and equipment 34,961 36,672 37,914
Investments
Listed associates 3,012 4,544 3,854
General portfolio - other listed 9,990 24,445 17,690
investments (note 5)
Other unlisted 309 580 319
Goodwill - 403 -
--------- --------- --------
--- --- ----
48,272 66,644 59,777
--------- --------- --------
--- --- ----
Current assets
Inventories 17,675 16,806 20,705
Investments held for resale - - 182
Accounts receivable 18,529 19,235 18,957
Cash 10,451 6,474 9,523
--------- --------- --------
--- --- ----
46,655 42,515 49,367
Current liabilities
Accounts payable (falling due within one (23,482) (23,030) (28,426)
year)
--------- --------- --------
--- --- ----
Net current assets 23,173 19,485 20,941
--------- --------- --------
--- --- ----
Total assets less current liabilities 71,445 86,129 80,718
Accounts payable (falling due after more (11,166) (12,501) (11,077)
than one year)
Provisions for liabilities and deferred (1,941) (2,378) (2,324)
taxation
--------- --------- --------
--- --- ----
58,338 71,250 67,317
======= ======= =======
Capital and reserves
Share capital 24,805 24,805 24,805
Share premium account 3,407 3,407 3,407
Other reserves 5,744 15,374 9,555
Retained earnings 13,780 15,434 16,321
--------- --------- --------
--- --- ----
Shareholders` funds 47,736 59,020 54,088
Minority interests 10,602 12,230 13,229
--------- --------- --------
--- --- ----
58,338 71,250 67,317
======= ======= =======
Consolidated cash flow statement
Half years ended Year
ended
31st March 30th
September
2009 2008 2008
Unaudited Unaudited Audited
US$000 US$000 US$000
Operating activities
Cash generated from operating activities 2,244 2,292 8,032
Interest paid (675) (678) (1,845)
Taxation paid (1,008) (1,656) (2,014)
--------- --------- --------
--- --- ----
Net cash inflow/(outflow) from operating 561 (42) 4,173
activities
--------- --------- --------
--- --- ----
Investment activities
Purchase of property, plant and (530) (24) (1,614)
equipment
Purchase of investments (198) (2,101) (4,367)
Disposal of tangible non-current assets 24 103 842
Disposal of investments 2,715 1,088 5,126
Interest received and other investment 228 336 1,052
income
--------- --------- --------
--- --- ----
Net cash inflow/(outflow) from 2,239 (598) 1,039
investment activities
--------- --------- --------
--- --- ----
Net cash inflow/(outflow) before 2,800 (640) 5,212
financing
--------- --------- --------
--- --- ----
Financing activities
Net increase/(decrease) in long term 89 1,285 (139)
debt
Dividends paid - group (496) (305) (1,018)
Dividends paid - outside shareholders (39) - (102)
--------- --------- --------
--- --- ----
Net cash (outflow)/inflow from financing (446) 980 (1,259)
activities
--------- --------- --------
--- --- ----
Net increase in funds 2,354 340 3,953
Net funds at start of period 7,094 3,209 3,209
Effect of foreign exchange rates (403) (78) (68)
--------- --------- --------
--- --- ----
Net funds at end of period 9,045 3,471 7,094
======= ======= =======
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended
31st March 2009 are unaudited and comply with IAS 34 - Interim
Financial Reporting. They have been prepared on the basis of
accounting policies adopted in the accounts for the year ended
30th September 2008, which comply with International Financial
Reporting Standards and Luxembourg law. The results for the year
to 30th September 2008 are an abridged version of the Group`s
full accounts for that year, which have been filed with the
relevant authorities.
2 The segmental analysis of revenue and operating profit is as
follows: -
Half years ended 31st March Year ended 30th
September
2009 2008 2008
US$000 US$000 US$000
Revenue Result Revenue Result Revenue Result
Analysed by activity:-
Import/distribution 56,422 2,317 54,416 2,735 105,503 6,510
Property 1,646 623 1,935 543 3,955 1,291
Other 37 (263) - (233) 101 74
------- ------ ------- ------ ------- -------
----- ------ ----- ------ ----- -----
58,105 2,677 56,351 3,045 109,559 7,875
------- ------- -------
----- ----- -----
Share of associated (266) (389) (461)
companies results:-
Exchange (296) 22 (318)
(losses)/gains
Interest paid (675) (678) (1,845)
------ ------ -------
------ ------ -----
1,440 2,000 5,251
Exceptional items (897) 1,556 1,214
------ ------ -------
------ ------ -----
Profit before tax 543 3,556 6,465
------ ------ -------
------ ------ -----
3 The exceptional items arise from the following.
31st March 30th
September
2009 2008 2008
US$000 US$000 US$000
(Loss)/Surplus on disposal of listed and (256) 258 325
unlisted investments
Surplus on disposal of non-current - - 555
tangible assets
Property revaluations - 93 39
Loss on disposals of tangible fixed - (141) -
assets
(Charge)/Release of investment provision (576) 1,346 295
Costs of acquisition of minority (65) - -
interests
------- ------- ---------
----- ----- ---
Net exceptional items (897) 1,556 1,214
------- ------- ---------
----- ----- ---
4 (Loss)/Earnings per share are based on results attributable to
members and on the average of 16,536,717 shares in issue during
the period. Headline earnings per share exclude extraordinary
items after tax net of minority interests.
5 A geographical analysis of the General Portfolio of investments
is as follows:-
United Kingdom 3,105 7,840 5,767
United States of America 2,716 4,624 3,923
Europe, excluding the U.K. and 2,025 5,484 3,707
Switzerland
Switzerland 1,475 5,355 3,367
Japan 669 1,142 926
------- ------- ---------
----- ----- ---
9,990 24,445 17,690
------- ------- ---------
----- ----- ---
6 Net assets per share are based on Shareholders` funds after
allowance for proposed dividends, divided by the number of shares
in issue of 16,536,717 at the period end (2008: March -
16,536,717; September - 16,536,717).
7 There was capital expenditure of US$530,000 during the period
(2008 - US$24,000). There was no contracted or outstanding
authorised capital expenditure at the balance sheet date.
29 June 2009
Sponsor
Sasfin Capital
(A division of Sasfin Bank Limited)
Date: 29/06/2009 13:00:01 Produced by the JSE SENS Department.
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