| Fri 4 Jun 2010, 13:00 | | MTE - Marshall Monteagle Holdings Societe Anonyme- Unaudited interim results for |
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MTE
MTE
MTE - Marshall Monteagle Holdings Societe Anonyme- Unaudited interim results for
the six months to 31 March 2010 and dividend declaration
(Incorporated in Luxembourg. RC Number B19600)
ISIN Code: LU0035797272
Share Code: MTE
("Marshall")
UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS TO 31 MARCH 2010 AND DIVIDEND
DECLARATION
We report strong results for the six months to 31st March 2010 despite a
background of continued economic uncertainty and volatility in equity and
currency markets.
* Results
- Group revenue is up 61% to US$93,570,000 for the six months to 31st March
2010, compared to US$58,105,000. In constant currency sales increased by
US$18,247,000 (31%).
- Operating profit of US$4,943,000 (2009 - US$2,450,000). In constant currency
operating profit increased by US$1,311,000 (54%)
- Headline earnings per share increased from US 4.9 cents to US 10.4 cents (full
year to September 2009 - US 11.8 cents).
- Interim dividend increased to US 3.00 cents (2009 - US 2.00 cents).
- Net assets increased 13% from US$2.89 per share (31st March 2009) to US$3.26
per share. Net assets at 30th September 2009 were US$3.17 per share. Marshall
Monteagle shares traded on 31st March 2010 at US$1.52 per share, a discount in
excess of 50 % to net asset value.
Import and Distribution
Our shipping and distribution business in food and household consumer products
achieved further growth during the six month period under review. This division
continues to provide procurement, supply chain and risk management services to
multiple retailers, wholesalers and manufacturers in Southern and Central
Africa, Indian Ocean Islands and Australia. It brings the benefits of dedicated
producers of quality raw materials, skilled technologists and first world
production facilities to our customers. The division continues to operate in an
extremely challenging environment with volatile raw material and currency
movements compounded by inconsistent demand. It would appear that these
conditions will remain over the next six months and probably well into the 2011
financial year. This division is well positioned to operate in these market
conditions and continually strives to anticipate our clients` needs and exceed
their expectations.
Our tool and machinery distribution business in South Africa continues to be
affected by the consumer slowdown which has continued into 2010, but the
business posted a small increase in sales during the period. Further working
capital improvements have been made with a reduction in stock levels and average
debtor days. Management have introduced new products with the view of being
able to offer customers a larger range of goods. Expenses are being managed
within budget and profitability has improved during the period. Our Australian
tool and machinery operations have been adversely affected by the contracting
local economy, but with cash reserves we are well positioned to benefit when
business starts to pick up again.
* Property Portfolio
Our large multi-tenanted industrial property in San Diego still has a vacancy
rate of 16% and the property market in Southern California remains very
challenging. As mentioned in the 2009 annual report, the property is situated
in one of the most sought after industrial areas in San Diego and the company is
a long term holder of this quality asset.
Despite the continuing slow-down of the local economy, the group`s portfolio of
commercial and light industrial properties in South Africa has continued to
produce healthy returns due to increased efficiencies and vacancy levels staying
well below acceptable norms.
* Investment Portfolio
The recovery in global equity markets that started in the first half of calendar
year 2009 continued into 2010, and the Company`s portfolio`s posted healthy
gains during the six months. However, the months of April and May 2010 have
been characterised by extreme volatility driven in the most part by the
situation in Greece, other debt-laden countries in the Euro-zone and in the U.K.
Our policy of holding a diverse portfolio of the world`s finest companies is
unchanged and we have substantial liquidity to capitalise on future buying
opportunities.
* Merchant & Industrial Properties ("Merchant")
The offer of 33 Marshall shares for every 100 Merchant shares made on 13th March
2009, closed on 29th January 2010. Acceptances were received in respect of
4,218,294 Merchant shares and Marshall accordingly now owns 94% of the issued
share capital of Merchant.
* Conafex Holdings S.A. (unlisted associate)
Conafex Holdings is a South African group that takes strategic stakes in
businesses focused in the value-added agri-resource sector. Current holdings
include stakes in a JSE listed fruit and vegetable trading and logistics
business; a health products business; an herbal tea exporter and a coffee
roasting business.
Negotiations between the Company and Conafex, amongst others, for the disposal
by the Company of its shares in Conafex in exchange for the coffee companies,
have reached an advanced stage and agreement has been reached in principle
subject to final due diligence.
* Halogen Holdings P.L.C. (unlisted associate)
Halogen Holdings owns 78% of the total issued share capital of Heartstone Inns,
a developing UK group of country pubs specialising in quality food. Heartstone
currently owns five pubs, which it manages, and it is looking to acquire
additional pubs through an associated cost efficient investment company which
has already acquired a pub in Guildford, Surrey.
* Net Assets
Assets outside Africa, net of minority interests and proposed dividends, stand
at US$30,504,000, equal to US$1.70 per share, the balance of US$27,975,000,
US$1.56 per share, were held in South Africa. Our total net assets amount to
US$3.26 per share, which compares with a market price on 31st March 2010 of
US$1.52 per share.
Interim dividend
We are pleased to announce that the Company has increased the interim dividend
to US 3.0 cents per share from US 2.0 cents, to equalise the interim and final,
based on those paid for 2009. The dividend is payable on 16th July 2010 to
shareholders on the register at the close of business on 25th June 2010.
Last day to trade (JSE) Friday 18 June 2010
Shares trade ex dividend (JSE) Monday 21 June 2010
Shares trade ex dividend (LuxSE and LSE) Wednesday 23 June 2010
Record date (LuxSE, JSE and LSE) Friday 25 June 2010
Pay date Friday 16 July 2010
Currency conversion date Friday 04 June 2010
Shareholders are hereby advised that the exchange rate to be used will be US$
1.00 = R7.6485. This has been calculated as the average of the bid/ask spread
at the opening of business (United Kingdom time) on 3 June 2010. Consequently
the dividend of US 3.00 cents will be equal to 22.9455 South African cents.
No dematerialisation and rematerialisation of share certificates may take place
between Monday 21 June 2010 and Friday 25 June 2010 or transfer of shares
between the registers in Luxembourg and SA and UK and SA may take place between
Monday 21 June 2010 and Friday 25 June 2010, 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 during the
period.
* Prospects
The Board are pleased with the results for the first half of the financial year
and despite recent volatility in equity markets and certain currencies, our
conservative policies and diversity within the group give us confidence that we
can continue to enhance shareholder value in the long term.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
Consolidated group income statement
Half years ended 31 Year ended
March 30 September
2010 2009 2009
Notes Unaudite Unaudited Audited
d
US$000 US$000 US$000
Group revenue 2 93,570 58,105 117,262
Operating costs (88,627) (55,655) (110,392)
Operating profit 4,943 2,450 6,870
Share of associated (284) (266) (271)
companies` results
Income from investments - 159 156 350
dividends
- interest 131 71 596
Interest paid and similar (903 (675) (2,259)
charges
Realised exchange 10 (296) (680)
gains/(losses)
Profit on ordinary 4,056 1,440 4,606
activities before
exceptional items and
taxation
Exceptional items 3 (290) (897) (3,455)
Profit before taxation 2 3,766 543 1,151
Taxation (1,023) (436) (1,423)
Profit after taxation (2,743) (107) (272)
Attributable to outside (1,183) (453) (1,169)
shareholders
Profit/(Loss) attributable 1,560 (346) (1,441)
to shareholders
Interim dividend per share 3.00c 2.00c 2.00c
(US cents)
Recommended final dividend n/a n/a 3.00c
(US cents)
Reconciliation of headline
earnings per share
Basic earnings/(loss) per 4 8.8c (2.1)c (8.3)c
share (US cents)
Less exceptional items, net 1.6c 7.0c 20.1c
of tax and minority
interests (US cents)
Headline earnings per share 4 10.4c 4.9c 11.8c
(US cents)
Statement of changes in equity
Exchange differences (118) (1,391) 2,432
Commercial property - (87) 57
revaluations
Group share of fair value (1,288) (3,701) (1,142)
adjustments on investments
Net gains not recognised in 1,170 (5,179) (1,347)
the income statement
New shares issued 414 - 3,171
Profit/(Loss) attributable to 1,560 (346) (1,441)
shareholders
Prior year dividends forfeit - - 89
Final dividend approved for (533) (496) (496)
the prior year
Interim dividend declared (537) (331) (353)
2,074 (6,352) 2,317
Shareholders` funds at start 56,405 54,088 54,088
of period
Shareholders` funds at end of 58,479 47,736 56,405
period
Consolidated group balance sheet
31 March 30 Sept.
2010 2009 2009
Unaudited Unaudited Audited
US$000 US$000 US$000
Non-current assets
Property, plant and equipment 39,363 34,961 38,740
Investments
Associates 3,390 3,012 3,672
General portfolio - other 15,070 9,990 13,510
listed investments (note 5)
Other unlisted 286 309 298
58,109 48,272 56,220
Current assets
Inventories 20,715 17,675 22,837
Accounts receivable 28,059 18,529 22,633
Cash 11,516 10,451 11,347
60,290 46,655 56,817
Current liabilities
Accounts payable (falling due (35,148) (23,482) (32,222)
within one year)
Net current assets 25,142 23,173 24,595
Total assets less current 83,251 71,445 80,815
liabilities
Accounts payable (falling due (11,280) (11,166) (11,566)
after more than one year)
Provisions for liabilities and (2,642) (1,941) (2,632)
deferred taxation
69,329 58,338 66,617
Capital and reserves
Share capital 26,893 24,805 26,673
Share premium account 4,905 3,407 4,710
Other reserves 8,152 5,744 7,332
Retained earnings 18,529 13,780 17,690
Shareholders` funds 58,479 47,736 56,405
Minority interests 10,850 10,602 10,212
69,329 58,338 66,617
Net assets per share US$ (note 3.26 2.89 3.17
6)
Consolidated cash flow statement
Half years ended Year ended
31 March 30 September
2010 2009 2009
Unaudited Unaudited Audited
US$000 US$000 US$000
Operating activities
* Cash generated from operating 509 2,244 3,338
activities
Interest paid (903) (675) (2,259)
Taxation paid (704) (1,008) (807)
Net cash (outflow)/inflow from (1,098) 561 272
operating activities
* Investment activities
Purchase of property, plant and (389) (530) (1,108)
equipment (note 7)
Purchase of investments (1,689) (198) (444)
Disposal of tangible non-current - 24 329
assets
Disposal of investments 1,235 2,715 3,108
Interest received and other 243 228 946
investment income
Net cash (outflow)/inflow from (600) 2,239 2,831
investment activities
Net cash (outflow)/inflow before (1,698) 2,800 3,103
financing
* Financing activities
Net (decrease)/increase in long (286) 89 489
term debt
New shares issued 414 - 3,022
Non-controlling interests (425) - (3,172)
acquired
Dividends paid - group - (496) (849)
Dividends paid - outside (364) (39) (593)
shareholders
Net cash (outflow)/inflow from (661) (446) (1,103)
financing activities
* Net increase in funds (2,359) 2,354 2,000
Net funds at start of period 9,445 7,094 7,094
Effect of foreign exchange rates 83 (403) 351
* Net funds at end of period 7,169 9,045 9,445
* Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31st March
2010 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 2009, which comply with International
Financial Reporting Standards and Luxembourg law. The results for the year to
30th September 2009 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: -
2010 2009 2009
US$000 US$000 US$000
Revenue Result Revenue Result Revenue Result
Analysed by activity:-
Import /distribution 91,329 4,577 56,422 2,317 113,426 6,631
Property 2,204 798 1,646 623 3,779 1,305
Other 37 (142) 37 (263) 57 (120)
93,570 5,233 58,105 2,677 117,262 7,816
Share of associated (284) (266) (271)
companies results:-
Exchange 10 (296) (680)
gains/(losses)
Interest paid (903) (675) (2,259)
4,056 1,440 4,606
Exceptional items (290) (897) (3,455)
Profit before tax 3,766 543 1,151
3. The exceptional items arise from the following:
31 March 30
September
2010 2009 2009
US$000 US$000 US$000
Loss on disposal of listed and (61) (256) (244)
unlisted investments
Fair value adjustments of financial (24) (-) (161)
assets
Property revaluations - (-) (2,986)
Loss on disposals of tangible fixed - (-) (3)
assets
(Charge)/Release of investment (149) (576) 89
provisions re associates
Costs of share issue re acquisition of (56) (65) (150)
minority interests
Net exceptional items (290) (897) (3,455)
4. Earnings/(Loss) per share are based on results attributable to members and on
the average of 17,782,325 shares in issue during the period (2009: March -
16,536,717; September - 17,320,428). 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 3,607 3,105 4,326
United States of America 4,219 2,716 3,467
Europe, excluding the U.K. 3,351 2,025 3,212
Switzerland 2,991 1,475 1,629
Japan 902 669 876
15,070 9,990 13,510
6. Net assets per share are based on Shareholders` funds after allowance for
proposed dividends, divided by the number of shares in issue of 17,928,756 at
the period end (2009: March - 16,536,717; September - 17,782,235).
7. There was capital expenditure of US$389,000 during the period (2009 -
US$530,000). There was no contracted or outstanding authorised capital
expenditure at the balance sheet date.
Luxembourg
4 June 2010
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 04/06/2010 13:00:09 Produced by the JSE SENS Department.
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