| Mon 16 Aug 2010, 7:05 | | TPC - Transpaco Limited - Reviewed results for the year ended 30 June 2010 and |
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TPC
TPC
TPC - Transpaco Limited - Reviewed results for the year ended 30 June 2010 and
dividend announcement
Transpaco Limited
Reg. No. 1951/000799/06
ISIN: ZAE000007480
Share Code: TPC
REVIEWED RESULTS FOR THE YEAR ENDED 30 JUNE 2010 AND DIVIDEND ANNOUNCEMENT
HEADLINE EARNINGS PER SHARE UP 16%
DIVIDEND PER SHARE UP 31%
NET ASSET VALUE UP 21%
Introduction
The board is pleased to report on the year ended 30 June 2010 ("the year"), in
which Transpaco continued its growth and delivered a sound performance. The
reduction in net interest paid, supported by improved operating efficiencies and
stringent control of group operating expenses contributed to the group`s
performance. The decline in turnover is due to challenging trading conditions in
the packaging industry.
Financial results
Earnings per share increased by 16,0% to 194,4 cents (June 2009: 167,6 cents).
Headline earnings per share grew by 16,0% to 193,9 cents (June 2009: 167,1
cents). Operating profit rose 3,3% to R83,5 million (June 2009: R80,8 million)
on a turnover of R786,3 million (June 2009: R803,0 million). Interest cover
improved to 16 times (June 2009: 5,8 times).
The group`s level of working capital which improved substantially in 2009 has
stabilised and continues to be well managed. Cash generated from operations
amounted to R99,0 million (June 2009: R147,3 million). Consequently the net
interest-bearing debt-to-equity ratio has improved from 11% in June 2009 to a
net cash positive position. The group is in a highly liquid position enabling it
to pay for the acquisition referred to below, to take advantage of opportunities
that may arise in the future and to increase the dividend.
Net asset value per share increased by 21,2% to 772 cents (June 2009: 637
cents).
Prospects
The group will endeavour to achieve growth by maintaining a strict financial
policy (including stringent management of working capital) and expanding
existing businesses. In addition Transpaco has concluded a transaction to
acquire the shares and claims of Disaki Cores and Tubes (Pty) Limited which
includes the businesses of Cleveland Packaging and
Global Packaging from Nampak Products Limited. The transaction is subject to
certain conditions precedent including the approval by the Competition
Commission.
Transpaco will continue to identify and pursue appropriate acquisitions.
Transformation
Transpaco continues to promote transformation strategies. Skills development and
preferential procurement remain a primary focus of management.
The group has made substantial contributions to corporate social responsibility
projects and will focus on enterprise development in the current year.
An independent accredited verification agency assessed Transpaco as a Level 5
BBBEE contributor. The group target is Level 4.
Dividend
The board has declared a final cash dividend of 38 cents per share. This
resulted in total dividends of 63 cents per share for the year (June 2009: 48
cents per share), an increase of 31,3%.
The salient dates for the dividend are as follows:
Last date to trade shares cum dividend Thursday, 16 September 2010
Shares trade ex dividend Friday, 17 September 2010
Record date Thursday, 23 September 2010
Payment date Monday, 27 September 2010
Share certificates may not be dematerialised or rematerialised between Friday,
17 September 2010 and Thursday, 23 September 2010, both days inclusive.
Basis of preparation and accounting policies
These results are prepared in accordance with the requirements set out in IAS 34
- Interim Financial Reporting and comply with the Listings Requirements of the
JSE Limited and the South African Companies Act, 1973. The accounting policies
are consistent in all material respects with those applied in the preparation of
the group`s annual financial statements for the year ended 30 June 2009 except
for the adoption of new standards and interpretations. The following two
standards had an impact for the year-ended 30 June 2010. Other standards and
interpretations that were issued did not have any impact on the entity.
* IAS 1 (Revised) Presentation of Financial Statements - The group has
adopted IAS 1 (Revised) which is effective for financial periods beginning
on or after 1 January 2009. The amendment mandates requirements for the
presentation of financial statements on the basis of shared
characteristics.
* IFRS 8 Operating Segments - The group has adopted IFRS 8 Operating Segments
which is effective for financial periods beginning on or after 1 January
2009. This standard requires the disclosure of information based on the
"management approach" to reporting on the financial performance of
operating segments.
Review of Independent Auditors
The group`s auditors Ernst & Young Inc. have reviewed the condensed consolidated
financial information for the year. Their review report is available for
inspection at Transpaco`s registered office.
ON BEHALF OF THE BOARD
AJ Aaron PN Abelheim L Weinberg
Non-executive Chief Executive Financial Director
Chairman
DIRECTORS
AJ Aaron (Chairman)*; PN Abelheim (Chief Executive); L Weinberg (Financial
Director); HA Botha*; JS Botha; SR Bouzaglou; SI Jacobson*;
D Thomas*; SP van der Linde*
*non-executive
Date 16 August 2010
Auditors Ernst & Young Incorporated
Sponsor Investec Bank Limited
Registered Office 331 6th Street, Wynberg, Sandton
Transfer Secretaries Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg
Website www.transpaco.co.za
SEGMENTAL ANALYSIS
R`000 Plastic Paper and Properties Total
Products Board and Group
Products Services
Turnover - 2010 591 148 195 192 - 786 340
Revenue to external 631 217 209 158 - 840 375
customers
Less revenue to internal 40 069 13 966 - 54 035
customers
Turnover - 2009 623 793 179 194 - 802 987
Revenue to external 655 638 189 463 - 845 101
customers
Less revenue to internal 31 845 10 269 - 42 114
customers
Operating profit - 2010 57 648 24 027 1 812 83 487
Operating profit - 2009 58 166 18 157 4 512 80 835
STATEMENT OF COMPREHENSIVE INCOME
R`000 Reviewed % Audited
12 months change 12 months
June 2010 June 2009
Turnover 786 340 (2,1) 802 987
Cost of sales 484 881 521 997
Profit before operating costs and 301 459 7,3 280 990
depreciation
Operating costs 192 816 175 544
Depreciation 25 156 24 611
Operating profit 83 487 3,3 80 835
Net interest paid 5 214 14 016
Profit before taxation 78 273 17,1 66 819
Taxation 23 843 20 096
Profit after taxation 54 430 16,5 46 723
Other comprehensive income - -
Total comprehensive income 54 430 16,5 46 723
Weighted average number of shares in 28 144 27 870
issue (`000)
Diluted weighted average number of 31 882 31 416
shares in issue (`000)
Earnings per share (cents) 194,4 16,0 167,6
Headline earnings per share (cents) 193,9 16,0 167,1
Diluted earnings per share (cents) 171,6 14,5 149,9
Diluted headline earnings per share 171,4 14,7 149,4
(cents)
Dividend per share (cents)* 63,0 31,3 48,0
Reconciliation of headline earnings
(R`000)
Basic earnings 54 430 46 723
Profit on disposal of property, plant (141) (154)
and equipment
Headline earnings 54 289 16,6 46 569
*Includes interim dividend of 25 cents (2009 - 16,5 cents) and a dividend
declared after the period of 38 cents (June 2009 - 31,5)
CAPITAL COMMITMENTS
R`000 Reviewed Audited
12 months 12 months
June 2010 June 2009
Capital expenditure authorised and
contracted
Property, plant and equipment 4 469 178
STATEMENT OF FINANCIAL POSITION
R`000 Reviewed Audited
12 months 12 months
June 2010 June 2009
ASSETS
Non-current assets 150 635 152 743
Property, plant and equipment 146 830 144 702
Intangibles 482 482
Goodwill 3 204 3 204
Unlisted investments 33 4 123
Deferred taxation 86 232
Current assets 281 342 254 499
Inventories 82 848 69 651
Trade and other receivables 117 970 114 379
Taxation receivable 3 804 5 004
Cash at bank and in hand 76 720 65 465
TOTAL ASSETS 431 977 407 242
EQUITY AND LIABILITIES
Capital and reserves 226 993 188 266
Issued share capital 282 281
Preference shareholders` 9 273 9 273
interest
Other reserves 469 341
Distributable reserve 216 969 178 371
Non-current liabilities 55 358 71 079
Preference share liability 2 122 3 049
Interest-bearing borrowings 37 373 56 038
Deferred taxation 15 863 11 992
Current liabilities 149 626 147 897
Trade payables and accruals 114 588 108 538
Provisions 11 838 10 725
Current portion of interest-bearing 22 206 27 296
borrowings
Taxation payable 914 1 338
TOTAL EQUITY AND LIABILITIES 431 977 407 242
Number of shares in issue (`000)
(Net of treasury shares) 28 078 27 694
Net movement in treasury shares 114 384
Ranking number of shares 28 192 28 078
Salient features
Net asset value per share (cents) 772 637
Operating margin (%) 10,6 10,1
Net interest-bearing debt:equity ratio Net Cash Positive 11
%
Interest cover (X) 16,0 5,8
STATEMENT OF CASH FLOW
R`000 Reviewed Audited
12 months 12 months
June 2010 June 2009
Cash flow from operating activities
Cash generated from operations 98 951 147 321
Dividends paid (15 911) (9 620)
Net interest paid (5 214) (14 016)
Taxation paid (19 049) (13 999)
Net cash inflow from operating 58 777 109 686
activities
Cash flow from investing activities
Proceeds on disposal of property, plant 323 651
and equipment
Expansion and replacement of property, (27 413) (26 085)
plant and equipment
Decrease/(increase) in unlisted 4 090 (754)
investments
Net cash outflow from investing (23 000) (26 188)
activities
Cash flow from financing activities
Net movement in treasury shares 80 335
Decrease in preference share liability (927) (848)
Decrease in long-term borrowings (18 665) (15 808)
(Decrease)/increase in short-term (5 010) 8 016
borrowings
Net cash (outflow) from financing (24 522) (8 305)
activities
Net movement in cash for the year 11 255 75 193
Cash and cash equivalents at the 65 465 (9 728)
beginning of the year
Cash and cash equivalents at the end of 76 720 65 465
the year
STATEMENT OF CHANGES IN EQUITY
R`000 Share Preference Other Distributable Total
Capital Shareholder`s Reserves Reserves
Interest
Balance at 30 June 277 9 273 1 901 139 249 150 700
2008
Net profit for the - - - 46 723 46 723
year
Transfer - - (1 688) 1 688 -
Share-based - - 128 - 128
payments
Dividend paid - - - (9 620) (9 620)
Net movement in 4 - - 331 335
treasury shares
Balance at 30 June 281 9 273 341 178 371 188 266
2009
Net profit for the - - - 54 430 54 430
year
Share-based - - 128 - 128
payments
Dividend paid - - - (15 911) (15 911)
Net movement in 1 - - 79 80
treasury shares
Balance at 31 282 9 273 469 216 969 226 993
December 2010
Date: 16/08/2010 07:05:05 Produced by the JSE SENS Department.
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