| Wed 9 Dec 2009, 10:04 | | WNH - Winhold Limited - The reviewed abridged consolidated results of the Group |
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WNH
WNH
WNH - Winhold Limited - The reviewed abridged consolidated results of the Group
for the year ended 30 September 2009
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 2009
Highlights
Net asset value per ordinary share up by 7.1%
Dividend per share up by 11.0%
WINHOLD LIMITED GROUP
CONSOLIDATED INCOME STATEMENT
YEAR ENDED
30 SEPTEMBER
2009 2008
R`000 R`000
REVENUE 994,947 991,915
OPERATING PROFIT 50,470 55,411
INVESTMENT INCOME 15,536 15,578
PROFIT ON SALE OF INVESTMENT PROPERTY 3,948 -
FINANCE COSTS (32,479) (35,498)
FINANCE INCOME 1,313 1,921
PROFIT BEFORE TAXATION 38,788 37,412
TAXATION (9,041) (7,099)
SHARE OF AFTER TAX PROFITS OF ASSOCIATED COMPANIES 941 681
NET PROFIT AFTER TAXATION 30,688 30,994
ATTRIBUTABLE TO OUTSIDE SHAREHOLDERS (3,754) (5,334)
ORDINARY SHAREHOLDERS` PROFIT 26,934 25,660
EARNINGS 26,934 25,660
HEADLINE EARNINGS 24 341 25 243
EBITDA 65,287 68,712
EARNINGS PER ORDINARY SHARE (CENTS) 21.5 20.4
HEADLINE EARNINGS PER ORDINARY SHARE (CENTS) 19,4 20.1
WEIGHTED AVERAGE ORDINARY SHARES IN ISSUE ADJUSTED
FOR
SHARES HELD IN GROUP ON WHICH EARNINGS PER SHARE HAS
BEEN CALCULATED (000`S) 125,506 125,506
ORDINARY SHARES IN ISSUE (000`S) 126,215 126,215
DIVIDEND PER ORDINARY SHARE 10.0 9.0
RECONCILIATION OF HEADLINE EARNINGS
ORDINARY SHAREHOLDERS` PROFIT 26,934 25,660
IMPAIRMENT OF DEVELOPMENT COSTS 1,576 -
NET PROFIT ON DISPOSAL OF INVESTMENT PROPERTY (3,948) -
NET PROFIT ON DISPOSAL OF FIXED ASSETS (1,311) (515)
TAXATION EFFECT ON DISPOSALS 1,090 98
HEADLINE EARNINGS 24,341 25,243
RECONCILIATION OF EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION ("EBITDA")
PROFIT FROM OPERATIONS 50,470 55,411
DEPRECIATION AND AMORTISATION OF INTANGIBLES 14,817 13,301
EBITDA 65,287 68,712
SUMMARISED CONSOLIDATED BALANCE SHEET
YEAR ENDED
30 SEPTEMBER
2009 2008
R`000 R`000
ASSETS
PROPERTY PLANT AND EQUIPMENT 135,897 128,423
TRADE MARKS AND PATENTS 153 2,338
INVESTMENTS 160,788 160,788
INVESTMENTS IN ASSOCIATES 1,979 1,440
GOODWILL 26,541 26,541
DEFERRED TAXATION 1,835 2,247
CURRENT ASSETS
- INVENTORY 147,714 165,608
- RECEIVABLES 163,349 182,166
- BANK AND CASH 10,424 12,826
TOTAL ASSETS 648,680 682,377
EQUITY AND LIABILITIES
ORDINARY SHARE CAPITAL AND PREMIUM 122,793 122,793
RETAINED EARNINGS 114,910 99,078
SHAREHOLDERS` INTEREST 237,703 221,871
OUTSIDE SHAREHOLDERS` INTEREST 13,951 10,197
TOTAL EQUITY 251,654 232,068
NON-CURRENT LIABILITIES
- INTEREST BEARING 179,563 185,651
- INTEREST FREE 10,686 4,632
- DEFERRED TAXATION 7,789 6,135
CURRENT LIABILITIES
- BANK OVERDRAFT 34,765 28,797
- SHORT TERM BORROWINGS 20,850 21,727
CURRENT LIABILITIES - INTEREST FREE
- PAYABLES 140,174 199,007
- TAXATION 3,199 4,360
TOTAL EQUITY AND LIABILITIES 648,680 682,377
SUPPLEMENTARY INFORMATION
CAPITAL COMMITMENTS 8,644 8,302
CAPITAL EXPENDITURE 29,199 24,076
DEPRECIATION 14,817 13,301
INTEREST BEARING BORROWINGS 235,178 236,175
INTEREST EARNING DEPOSITS 10,299 12 563
NET ASSET VALUE PER ORDINARY SHARE (CENTS) 189.4 176.8
NET TANGIBLE ASSET VALUE PER ORDINARY SHARE (CENTS) 168.1 153.8
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
YEAR ENDED
30 SEPTEMBER
2009 2008
R`000 R`000
SHAREHOLDERS` FUNDS AT BEGINNING OF YEAR 221,871 205,677
WRITE BACK OF UNCLAIMED DIVIDENDS 396 -
CHANGES IN RETAINED EARNINGS 26,934 25,660
DIVIDEND PAID (11,498) (9,466)
SHAREHOLDERS` FUNDS AT END OF YEAR 237,703 - 221,871
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
CASH FLOW FROM OPERATING ACTIVITIES 7,498 10,404
PROFIT BEFORE INTEREST, TAX AND NON-CASH ITEMS 79,623 83,893
CHANGES IN INVENTORY 17,894 (26,930)
CHANGES IN RECEIVABLES 18,817 (16,657)
CHANGES IN PAYABLES (70,027) 3,316
CASH FLOW FROM OPERATIONS 46,307 43,622
NET FINANCE COSTS (19,576) (21,466)
SHARE OF RESULTS FROM ASSOCIATES 402 256
TAXATION PAID (8,137) (2,542)
DIVIDENDS PAID (11,498) (9,466)
CASH FLOW USED IN INVESTING ACTIVITIES (14,847) (22,939)
INVESTMENT IN FIXED ASSETS (29,199) (24,076)
PROCEEDS FROM DISPOSAL OF FIXED ASSETS 14,352 1,137
CASH FLOW USED IN FINANCING ACTIVITIES (1,021) (2,764)
INTEREST BEARING BORROWINGS RAISED 15,161 11,261
INTEREST BEARING BORROWINGS REPAID (22,126) (17,574)
INTEREST FREE BORROWINGS RAISED 5,944 3,549
NET DECREASE IN CASH AND CASH EQUIVALENTS (8,370) (15,299)
CASH & CASH EQUIVALENTS AT BEGINNING OF YEAR (15,971) (672)
CASH & CASH EQUIVALENTS AT END OF YEAR (24,341) (15,971)
IMPACT OF CORRECTION OF PRIOR YEAR MISINTERPRETATION ERROR
Impact on Ordinary Shareholders` Interest (Gross and Year Ended Prior Years
net of tax) 30 Sept (R000)
2008 (R000)
Ordinary Shareholder`s interest as previously 239 329 217 002
reported.
Correction of prior period misinterpretation error
Restatement of Investment Income using the effective
interest method.
Ordinary shareholder`s interest as currently stated.
(17 458) (11 325)
221 871 205 677
INCOME STATEMENT IMPACT Year Ended Prior
30 Sept Years
2008 (R000)
(R000)
Net Income as previously reported. 31 793
IAS 39 Restatement of Income to reflect investments
held to maturity to Loans and receivables (6 133)
Net Income as currently stated 25 660
MINING INDUSTRIAL
SEGMENT INFORMATIOM CONSUMABLES CONSUMABLES
(INMINS) (INMINS)
2009 2008 2009 2008
TURNOVER (R` 000) 338,249 345,222 152,438 159,681
OPERATING PROFIT (R` 000) 13,384 14,294 4,346 10,271
INVESTMENT INCOME - - - -
DEPRECIATION ( R` 000) 1,103 1,127 770 710
CAPITAL EXPENDITURE ( R` 000) 477 757 291 1,062
TOTAL ASSETS ( R` 000) 125,356 143,125 48,840 55,738
TOTAL LIABILITIES ( R`000) 60,864 82,384 19,081 26,172
Table continues:...
FLEXIBLE PROPERTY AND
PLASTICS OTHER TOTALS
(GUNDLE) -
2009 2008 2009 2008 2009 2008
500,332 484,894 3,928 2,118 994,947 991,915
36,636 31,511 (3,896) (665) 50,470 55,411
- - 15,536 15,578 15,536 15,578
9,481 9,666 3,463 1,798 14,817 13,301
28,318 20,438 113 1,819 29,199 24,076
250,660 258,070 223,824 225,444 648,680 682,377
146,685 161,898 170,396 179,855 397,026 450,309
COMMENTARY
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 comprises 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 products.
REVIEW OF RESULTS
The group produced fine results the past financial year despite the downturn in
the South African economy.
Revenue grew slightly in a recessionary and negative economic climate to R994
947 million.
The group managed to improve on last year`s excellent results to record a best
ever attributable profit of R26 934 million, resulting in the earnings per share
increase of 5% to 21,5 cents. Net asset value per ordinary share grew by 7,1%
to 189,4 cents.
Dividend per share increased by 11,1% to 10 cents per share.
Overall the group performed well, capital expenditure contributed to the
improved performance, costs were curtailed and assets were managed effectively.
During the financial year there was a net operational cash in-flow of R46 307
million. 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
R8,370 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 38,3% (2008:39%).
OPERATIONAL REVIEWS
Gundle
In a very difficult market, Gundle produced its best ever profits. Shareholders`
profit increased by 31,7% while turnover only increased by 3,2%. The
discontinuation of a loss maker at the end of February; continued improved
results of the amalgamation of two factories; the best ever results in one of
our manufacturing units; the best ever results in the Geosynthetics division,
and the commissioning of new equipment all contributed to the improved set of
results. One of the four distribution branches also had a best ever profit.
Overall an outstanding year for the Gundle group of operations.
Inmins
Turnover declined by 2,8% to R490,7 million. Shareholders` profit increased by
3.6% to
R14 958 million, however this did include a profit of R3,625 million on the sale
of a property.
The decrease in the platinum mines` output, as well as the reduction in steel
product prices had a negative impact on the group results in the second half of
the financial year. This was the major cause of the reduction of 10,2% in
operating profit. Proactive actions curtailed the operating expenses which only
increased by 1,4% year on year.
Five out of the sixteen operations had record in profits including the branches
in the coal and power generation sector which continued their growth. The value
added division improved their profitability from last year and have an improved
future order book. New products were launched successfully in the industrial
division.
Novara
Although new products have been accepted by the market, volumes remained too low
and Novara did not become profitable for the financial year. This necessitated
capitalised development costs to be impaired by R1,6 million which had a
negative impact on earnings per share this year. These costs are now fully
written off. Actions are being implemented in order to bring this operation to
profitability.
PROSPECTS
In a very negative market the group continues to investigate ways to increase
shareholders` wealth by improving operational results; exploring growth
opportunities; to invest wisely and to critically assess current structures.
Gundle
Commissioning of new plant at the end of this financial year should contribute
to improved results in the coming year.
New products were accepted well and should contribute positively in the future.
The group is well positioned and with improvement in economic conditions, should
continue with improved results.
Inmins
The adverse conditions in the platinum- and steel industry are expected to
continue well into next year. However, any improvement therein will impact
positively on the group. New products will continually be explored and good
working capital management should lead to enhanced results.
Novara
An improvement in the consumer market will impact positively on sales. A product
was developed for utilisation by Gundle leading to improved profitability of
both operations. Other applications of the equipment and the product are being
investigated.
CORRECTION OF PRIOR YEAR MISINTERPRETATION ERROR
Previously investment income was recognized on a contractual basis. This income
should have been recognized using the effective interest rate method, which
allocates investment income over the relevant period to the carrying amount of
the investments. This has resulted in a reduction in the ordinary share holders
interest as tabled above, which will now be recognized as investment income over
the remaining period of the underlying investments maturing in 2016.
CAPITAL COMMITMENTS
The amount of R8,644 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 2010.
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 and now King
III Reports and the Listings Requirements. The Group endeavours to conduct its
business in accordance with the principles of accountability, transparency and
integrity.
DIRECTORATE
There have been no changes to the composition of the Board or its committees in
the year under review
DECLARATION OF DIVIDEND
Notice is hereby given that an ordinary dividend of 10 cents (2008: 9.0 cents )
per share for the year ended 30 September 2009 has been declared to holders of
ordinary shares recorded in the share register of the company at the close of
business on 19 February 2010.
In compliance with the requirements of STRATE, the following dates are
applicable:
Last day to trade "cum" dividend is : Friday 12 February 2010
Commence trading "ex" dividend from : Monday 15 February 2010
Record date is : Friday 19 February 2010
Payment date is : Monday 22 February 2010
Share certificates may not be de-materialised / re-materialised between Monday
15 February 2010 and Friday 19 February 2010, 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.
On behalf of the board
WAR WENTELER D B MOSTERT
Chairman Deputy Chairman
Date : 9 December 09
Directors:
W A R Wenteler (Chairman), D B Mostert (Deputy Chairman) , W Fourie
(Financial),
P J Kruger, N P Mnxasana , ( Independent non-executive), P.Nash
Company Secretary:
G J O`Connor johnoc@inmins.co.za / telephone: +2711 345 9819 / fax : +2711 345
9823
Registered Office :
884 Linton Jones Street, Industries East, Germiston ( PO Box 5324 Johannesburg
2000 ) - telephone: +2711 345 9800 / fax : +2711 345 9881
Transfer Secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg. ( PO Box 61051, Marshalltown 2107 ) email :
registrar@computershare.co.za / - telephone: +2711 688 5248 / fax : +2711 370
5000
Auditors:
BDO Spencer Steward (Johannesburg) Inc.
13 Wellington Road, Parktown 2193 ( Private Bag X60500, Houghton 2041 ) - email
: bdojhb@bdo.co.za / telephone: +2711 488 1700 /
fax : +2711 488 1701
Sponsor:
Arcay Moela Sponsors ( Pty) Limited
Arcay House, 3 Anerley Road, Parktown - e-mail : dougg@arcaymoela.co.za /
telephone: +2711 480 5800 / fax : +2711 480 8556
Website : www.winhold.co.za
Date: 09/12/2009 10:04:02 Produced by the JSE SENS Department.
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