| Thu 17 Jun 2010, 16:00 | | DLV - Dorbyl Limited - Provisional Group results for the year ended 31 March |
|
DLV
DLV
DLV - Dorbyl Limited - Provisional Group results for the year ended 31 March
2010
Dorbyl Limited
(Incorporated in the Republic of South Africa)
(Company registration number: 1911/001510/06)
Share code: DLV ISIN Code: ZAE 000002184
("Dorbyl" or "the Company" or "the Group")
PROVISIONAL GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2010
STATEMENT OF COMPREHENSIVE INCOME
Audited Audited
Year to Year to
March March
2010 2009
R`000 R`000
Continuing operations:
Revenue - -
Cost of sales - -
Gross profit - -
Other operating income 2 349 9 657
Administrative expenses (13 988) (28 231)
Sales and distribution expenses - (5 009)
Other operating expenses
Employee benefit liabilities reversed/(raised) 2 942 (7 909)
Operating loss (8 697) (31 492)
Net finance income 4 023 4 802
Finance income 4 427 6 648
Finance costs ( 404) (1 846)
Share of loss of equity accounted investee (21 943) (5 741)
Loss before taxation (26 617) (32 431)
Income tax expense - ( 67)
Loss after taxation from continuing operations (26 617) (32 498)
Discontinued operations:
Loss from discontinued operations, net of taxation (87 185) (227 347)
Loss for the year (113 802) (259 845)
Other comprehensive (expense)/income
(Devaluation)/revaluation of property, plant and (5 000) 102 017
equipment
Other comprehensive (expense)/income for the year, (5 000) 102 017
net of income tax
Total comprehensive loss for the year (118 802) (157 828)
Loss attributable to:
Equity holders of the parent (94 848) (237 932)
Minority interest (18 954) (21 913)
Loss for the year (113 802) (259 845)
Total comprehensive loss attributable to:
Equity holders of the parent (99 848) (135 915)
Minority interest (18 954) (21 913)
Total comprehensive loss for the year (118 802) (157 828)
Cents Cents
Loss per share (cents)
Basic and diluted loss per share (279.6) (701.4)
Continuing operations (78.5) (95.8)
Discontinued operations (201.1) (605.6)
R`000 R`000
Headline loss reconciliation
Loss for the year (94 848) (237 932)
Adjusted for : 19 978 130 450
(Profit)/loss on disposal of plant, vehicles and ( 237) 56
equipment
Loss on sale of discontinued operations 7 500 -
Impairment of assets 9 942 129 139
Less: Minority interest ( 862) (10 185)
(Reversal)/impairment of investment in equity (4 865) 11 440
accounted investees
Share of impairment of assets of equity accounted 8 500 -
investees
Headline loss (74 870) (107 482)
Headline and diluted loss per share (cents) (220.7) (316.8)
Continuing operations (78.5) (95.8)
Discontinued operations (142.2) (221.0)
Depreciation and amortisation 2 866 19 383
Continuing operations 431 319
Discontinued operations 2 435 19 064
Finance income 11 780 11 952
Interest received 4 032 7 274
Foreign exchange gains 7 748 4 678
Continuing operations 4 427 6 648
Discontinued operations 7 353 5 304
Finance cost (16 960) (12 618)
Interest paid ( 717) (1 363)
Foreign exchange losses (16 031) (11 043)
Interest paid - other ( 212) ( 212)
Continuing operations ( 404) (1 846)
Discontinued operations (16 556) (10 772)
BALANCE SHEET
Audited Audited
March March
2010 2009
R`000 R`000
ASSETS
Non-current assets 103 96 260
Property, plant and equipment 103 70 826
Investment in associates - 25 434
Current assets 346 195 416 185
Inventories - 34 992
Taxation receivable - 974
Trade and other receivables 25 598 23 543
Employee benefits 2 821 -
Cash and cash equivalents 64 685 51 431
Assets classified as held for sale 253 091 305 245
Total assets 346 298 512 445
EQUITY AND LIABILITIES
Total equity 166 590 285 392
Equity attributable to equity holders of the parent 165 280 265 128
Minority interest 1 310 20 264
Non-current liabilities 27 891 26 652
Preference share capital 3 980 3 980
Employee benefits 23 911 22 672
Current liabilities 151 817 200 401
Bank overdraft 22 602 -
Trade and other payables 23 829 74 669
Employee benefits - 1 360
Provisions 300 770
Taxation payable - 205
Liabilities classified as held for sale 105 086 123 397
Total equity and liabilities 346 298 512 445
R`000 R`000
Assets classified as held for sale
Property, plant and equipment 101 161 104 593
Investment in equity accounted investee 10 118 -
Inventories 62 490 100 837
Trade and other receivables 75 120 92 604
Tax receivable 165 15
Cash and cash equivalents 4 037 7 196
253 091 305 245
Liabilities classified as held for sale
Deferred tax liabilities 156 203
Minority shareholders for dividends 2 161 2 161
Trade and other payables, including derivitives 102 692 120 831
Taxation payable 77 202
105 086 123 397
Capital commitments authorised - 3 168
Authorised and contracted for - 1 815
Authorised but not contracted for - 1 353
Operating lease commitments 10 340 12 268
Operating lease receivables 191 955 195 917
Investments in equity accounted investee - current
year
classified as held for sale 10 118 25 434
Net asset value per share (cents) 487 782
Acquisition of property, plant and equipment
Expansion 3 990 13 112
Replacement 2 352 13 718
Finished goods stated at net realisable value - 2 137
Ordinary shares (000)
Issued - net of treasury shares 33 924 33 924
Weighted average number of shares - net of treasury 33 924 33 924
shares
STATEMENT OF CHANGES IN EQUITY
Stated Retained
capital Reserves earnings
R`000 R`000 R`000
Balance 1 April 2008 11 248 4 000 385 795
Total comprehensive loss for the
year
Loss for the year - - (237 932)
Other comprehensive income
Revaluation of property, plant and - 102 017 -
equipment
Total other income loss for the - 102 017 -
year
Transactions with owners, recorded
directly in equity
Dividends to shareholders - - -
Total contributions by and - - -
distributions to owners
Balance 31 March 2009 11 248 106 017 147 863
Total comprehensive loss for the
year
Loss for the year - - (94 848)
Other comprehensive expense
Devaluation of property, plant and - (5 000) -
equipment
Transfer of revaluation reserve on - (26 326) 26 326
sale of property
Depreciation on revaluation of - (225) 225
property
Total other comprehensive loss for - (31 551) 26 551
the year
Balance 31 March 2010 11 248 74 466 79 566
Equity
holders
of the Minority Total
parent interest equity
R`000 R`000 R`000
Balance 1 April 2008 401 043 44 284 445 327
Total comprehensive loss for the
year
Loss for the year (237 932) (21 913) (259 845)
Other comprehensive income
Revaluation of property, plant and 102 017 - 102 017
equipment
Total other income loss for the 102 017 - 102 017
year
Transactions with owners, recorded
directly in equity
Dividends to shareholders - (2 107) (2 107)
Total contributions by and - (2 107) (2 107)
distributions to owners
Balance 31 March 2009 265 128 20 264 285 392
Total comprehensive loss for the
year
Loss for the year (94 848) (18 954) (113 802)
Other comprehensive expense
Devaluation of property, plant and (5 000) - (5 000)
equipment
Transfer of revaluation reserve on - - -
sale of property
Depreciation on revaluation of - - -
property
Total other comprehensive loss for (5 000) - (5 000)
the year
Balance 31 March 2010 165 280 1 310 166 590
CASH FLOW STATEMENT
Audited Audited
Year to Year to
March March
2010 2009
R`000 R`000
Cash utilised by operations (81 357) (37 884)
Operating cash flow (80 078) (98 428)
Movement in working capital (1 119) 64 258
Interest expense ( 929) (1 575)
Income taxes received/(paid) 769 (2 139)
Cash flows from investing activities 68 850 (18 712)
Interest income 4 032 7 274
Proceeds on disposal of property, plant and equipment 62 922 279
Acquisition of property, plant and equipment (6 342) (26 830)
Disposal of discontinued operations 10 000 -
(Increase)/decrease in investments in (1 762) 565
subsidiaries/associates
Net decrease in cash and cash equivalents (12 507) (56 596)
Cash and cash equivalents at beginning of year 51 431 115 223
Classified as held for sale at beginning of year 7 196 -
Classified as held for sale (4 037) (7 196)
Cash and cash equivalents at end of year 42 083 51 431
REVIEW OF OPERATIONS
Net cash position
The net cash position at R46,1 million, including cash classified as held for
sale, is R12,5 million lower than the position at 31 March 2009 mainly owing to
the receipt of the proceeds on the disposal of property, plant and equipment
which was off-set by closure related costs including retrenchment pay-outs and
operating losses. Subsequent to year-end but before the release of the
Provisional Group Results, a further R62,8 million cash proceeds were received
in respect of the disposal of the Rosslyn property, Uitenhage property and final
payment relating to the Forging and Machining business disposal. The
Provisional Group results were not adjusted for this cash receipt.
Net asset value as at 31 March 2010
Shareholders are reminded that the impairment and revaluation assessments to
date reflect assumptions and judgements by the management of Dorbyl concerning
anticipated future outcomes. These assumptions and judgements may or may not
prove to be correct, as there is significant uncertainty in the current economic
environment and should accordingly be viewed with caution.
The net asset value is summarised as follows: R`million
Business units held for sale or discontinued 53
Properties held for sale 91
Cash 46
Corporate and benefit funds related net working capital (21)
Preference shares (4)
Total net asset value 165
The business units classified as held for sale (and therefore classified as
discontinued operations in the statement of comprehensive income) in the current
reporting period include Dorbyl Automotive Systems (including Pullmaflex),
Guestro Casting and Machining and the properties held for sale include
Uitenhage, Struandale, Rosslyn and Benoni. Business units classified as
continuing operations comprise only the Corporate Head office. It should be
noted that Univel Transmissions ceased production and the closure was nearing
completion by the financial year-end. The prior year results have been restated
as discontinued operations for comparative purposes.
The net asset value per share as at 31 March 2010 amounted to 487 cents per
share, compared to 782 cents per share as at 31 March 2009. The Group`s
accounting policy is to carry properties at a revalued amount, being the fair
value at the date of revaluation until such time as it is held for sale. It
should be noted that due to the held for sale rules in terms of IFRS5, the
carrying value of the Benoni property at 31 March 2010 is 43 cents per share
less than the valuation as determined by the directors. The net asset value per
share of 487 cents does therefore not include this additional 43 cents of
perceived value. The net asset value does not consider the possible impact of
Secondary Tax on Companies (STC) and does not include future corporate costs to
be incurred while implementing the various strategic actions. The corporate
actions being undertaken, being the subject of the cautionary under which the
Company is currently trading, are not expected to result in any material income
tax or capital gains tax due to the assessed tax losses and capital losses
within the relevant corporate entities.
Results
The automotive industry generally, and component manufacturers in particular,
continued to face challenging trading conditions during the year under review.
The headline earnings loss attributable to equity holders of the parent for the
year amounted to R74,9 million or 220,7 cents per share.
Review of business units and assets
Previous announcements have endeavoured to keep shareholders informed of actions
being taken in respect of the five business units and the five properties, which
constitute the Group.
The current status of these interventions is summarised below:
- Dorbyl Automotive Systems (DAS): The disposal of this business unit, which
was initially announced in October 2008, did not materialise and the
transaction was terminated as announced on 22 January 2010. Negotiations
with a potential buyer are at an advanced stage.
- Univel Transmissions: As noted above, this operation ceased production
during the year. The disposal of the related assets is nearing completion.
- Guestro Forging and Machining: The disposal of this business unit, which
was initially announced on 2 September 2009, was finalised during the year.
The business was disposed of effective 1 February 2010. The announcements
in this regard released on 11 February 2010 and 7 April 2010 refers. The
final proceeds on the disposal amounting to R21,8 million, were received
subsequent to 31 March 2010.
- Dorbyl Magnetto Wheels: Dorbyl intends to dispose of its 50% interest in
this company to the joint venture partner, Magnetto Wheels S.p.A. The
details of an agreement to this effect are being finalised.
- Guestro Castings and Machining: Management is currently engaging with a
potential buyer who has expressed an interest in acquiring the business.
Action is also being undertaken to optimise the value of the property on
which this operation is located.
- Neave property: The disposal and the receipt of the proceeds amounting to
R36 million were received during the year under review.
- Uitenhage and the Struandale properties: The disposal of these two
properties was announced on 17 August 2009 and approved at the
shareholders` meeting held on 1 October 2009. The proceeds in respect of
the Uitenhage property (R30 million) were received subsequent to year-end,
whilst the proceeds in respect of the Struandale property (R35 million) is
pending the transfer of the property into the name of the purchaser. It
should be noted that operating lease receivables listed in the notes to the
financial statements as R192 million relates mainly to a long-term lease on
the Struandale property.
- Rosslyn property: The property was disposed of during the second half of
the year and the proceeds, amounting to R11 million, were received
subsequent to the financial year-end.
Renewal of cautionary
Shareholders are referred to the previous cautionary announcements, the last of
which was dated 10 May 2010, and are advised that negotiations are still in
progress which, if successfully concluded, may have an effect on the price of
Dorbyl`s securities. Accordingly, shareholders are advised to continue to
exercise caution when dealing in Dorbyl`s securities until a further
announcement is made.
Segmental reporting
The primary segment during the period was automotive component manufacturing. In
terms of the geographical segment, automotive component manufacturing is
considered to be a South African operation. Due to the fact that the whole
business is considered as one segment, no segmental reporting has been provided.
Subsequent events
Other than the negotiations for the disposal of the remaining assets of the
Group and cash proceeds received referred to above, no matters which are
material to the financial affairs of the Company or the Group have occurred in
the period between the reporting date and the date of this announcement.
Basis of preparation and Audit Opinion
The Provisional results for the year ended 31 March 2010 have been prepared in
accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS), the presentation and disclosure
requirements of IAS 34 - Interim Financial Reporting and the AC500 series as
issued by the Accounting Practices Board, the Companies Act and the Listings
Requirements of the JSE Limited. The Provisional results should be read in
conjunction with the consolidated financial statements for the Group as at and
for the year ended 31 March 2010. The accounting policies applied are consistent
with those applied in the prior comparative year and in the financial statements
for the year ended 31 March 2010.
The unmodified audit reports of KPMG Inc. included in the financial statements
and on the summarised financial statements contained in this Provisional Report
are available for inspection at the Company`s registered office.
DIVIDEND
In view of the adverse results for the year under review, no dividend has been
declared.
On behalf of the board
J B Magwaza (Chairman)
R F Rohrs (Chief Executive Officer)
17 June 2010
Transfer secretaries:
Computershare Investor Services (Proprietary) Limited
70 Marshall Street, Johannesburg, 2001
(P O Box 61051, Marshalltown, 2107).
Company secretary and registered office:
BD Bhikha,
13 Lincoln Road, Industrial Sites,
Benoni South, 1501.
(PO Box 5500, Benoni South, 1502).
Sponsor:
PSG Capital (Proprietary) Limited
DM Kisch House, Inanda Greens Business Park, 54 Wierda Road West, Sandton, 2196.
(PO Box 987, Parklands, 2121).
Directors:
JB Magwaza (Chairman)**, RF Rohrs (Chief Executive Officer)*, PM Bester**, JW
Dreyer***, TA Morkel**, BP Wood*, T van Wyk***
* Executive directors ** Independent non-executive directors *** Non-executive
directors
Date: 17/06/2010 16:00:01 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.
