| Thu 27 Dec 2001, 0:00 | | Monteagle Holdings Societe Anonyme - Results For T |
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Results for the year ended 30th September 2001
(subject to audit)
Monteagle's objective is to achieve capital growth over the long term. A
number of exceptional and unrepeatable circumstances have come together over
the last 12 months to generate an extraordinarily pleasing set of results.
Group profit before exceptional items and tax was US$2,952,000 ÝR26,568,000¨
compared to US$1,342,000 ÝR9,689,240¨ in 2000, primarily due to the increase
in profits of our agriculture interests in Zimbabwe. Understandably, due to
circumstances in Zimbabwe, those results may not be repeatable in future
years. Exceptional profits have increased to US$6,450,000 ÝR58,050,000¨
(2000 - US$1,948,000 Ý14,064,560¨) due to the sale of our portfolios of
listed investments. The Group profit attributable to shareholders was
US$7,584,000 ÝR68,256,000¨, which equates to earnings per share of 120.4 US
cents ÝR10,84¨ (2000 - 29.3 US cents ÝR2.12¨). Headline earnings per share
excluding exceptional items and the tax thereon was 18.0 US cents ÝR1.62¨
(2000 - 6.9 US cents ÝR0.49¨).
The key to the exceptional level of earnings this year was the decision
taken to sell all of our investments in shares listed on the US and South
African stock exchanges. This realised, as exceptional profits, the
increase in the value of investments over cost, which had been built up over
a number of years. The timing of our decision proved to be correct and most
investments were sold at satisfactory prices prior to the major decline in
world stock markets. So far we have reinvested approximately a third of our
cash balances in blue chip European and UK stocks which are currently
showing a gain. We continue to monitor stock markets and will reinvest the
balance as opportunities occur.
The commercial agriculture & horticulture interests held through Conafex and
its associated company, Ariston Holdings Limited, had a very successful
year, despite the political and economic situation in Zimbabwe. Their
profit contribution before interest, exceptional items and tax more than
doubled due to the principal export crops of tobacco, tea and flowers all
performing well.
Conafex has continued to diversify out of Zimbabwe with the acquisition of
minority stakes in a Rooibos and Honeybush herbal tea producer in South
Africa and a speciality tea packing business in the UK.
The importing, exporting and distribution businesses showed mixed results.
The turnover of our businesses trading non-perishable private label food
products on an international basis has increased by over 90% with volume
increases in both existing and new product lines. The higher contribution
from these businesses has more than offset a decline in the contribution
from our South African tool and machinery import and distribution business
which suffered a reduction in turnover of just over 10%, and the declining
exchange rate also contributed to reduced margins. Our smaller Australian
tool and machinery import and distribution business continues to grow both
volumes and profits.
The returns from the Group's investment properties in California have
continued to grow. Lower returns were seen from our properties in South
Africa where we had a reduction in occupancy rates.
Our share of the losses incurred by our Zimbabwean gold mining interests,
including our associate Falcon, were US$205,000 ÝR1,845,000¨ (2000 -
US$118,000 ÝR851,960¨) as a result of the deteriorating operating
environment, inflation of over 100% and the continuing low gold price.
We regard the hard currency cash flow from our investments to Luxembourg as
a crucial issue, particularly when considering the level of dividend to
recommend to shareholders. The dividend is being maintained at 8.5 US cents
per share for 2001 because of the exceptional results for the year, despite
limited cash flows received from our subsidiaries. The uncertainty over the
level of future remittances from our interests in Southern Africa due to
currency weaknesses and the political situation means that we cannot expect
to be able to maintain the dividend at the current level in 2002. Our
budgets indicate that shareholders should expect approximately 5.0 US cents
as next year's dividend.
Changes have been made to the Group structure during the year to enhance its
value in hard currency, and to increase assets available as security to the
European banks that finance our international trading operations. We expect
this to facilitate future growth in our import and export businesses.
We strive to achieve real growth in net assets per share in dollars and are
pleased to report that net assets, including investments at market value and
after deducting minority interests, have grown to US$33,281,000
ÝR299,529,000¨ (2000 - US$32,211,000 ÝR232,563,420¨). Of these US$17,405,000
ÝR156,645,000¨, US$2.76 ÝR24.84¨ per share, (2000 - US$11,547,000
ÝR83,369,340¨) are outside Africa following the reorganisation of our Group
structure.
We would like to repeat the words used last year in respect of our
Zimbabwean assets: "Your board has carefully considered the carrying value
of our Zimbabwe assets and has decided to continue to incorporate them in to
the Group accounts at depreciated historic cost, translated at year end
exchange rates. It is, of course, not possible, in present circumstances,
to estimate a realistic realiseable value of our Zimbabwean assets.
However, most of the products produced by our interests in Zimbabwe have
selling prices denominated in hard currency and, to a certain extent, this
improves their cashflows in local currency terms in the current uncertain
political and economic climate." The carrying value of these net assets at
30th September 2001 after deducting minority interests has increased to
US$13,471,000 ÝR121,239,000¨, US$2.14 ÝR19.26¨ per share, (2000 -
US$12,132,000 ÝR87,593,040¨) reflecting the undistributed profits of our
farming interests.
We are confident that we can capitalise on our strong balance sheet in
future years now that we have increased our net assets outside Africa.
J. M. Robotham D. C. Marshall
Chairman Chief Executive
Notice of Meeting and Declaration of Dividend
NOTICE OF MEETING
According to the Company's Articles of Incorporation ("Articles"), the
Annual General Meeting of Shareholder's ("AGM") is required to be held on
the last Friday in the month of March. The Articles further state that if
the AGM cannot take place on that date, it should take place on the first
preceding day. Because Friday 29th March 2002 is Good Friday, the AGM
should take place on Thursday 28th March 2002. However, it was not
considered that this date would be convenient to shareholders and it has
been decided to bring forward the meeting. Accordingly the Annual General
Meeting will take place on Tuesday 26th March 2002 at 4.00 p.m. at the
registered office of the Company, 6 rue Adolphe Fischer L-1520 Luxembourg.
A dividend of 8.5 US cents per share is proposed to be paid on 3rd May 2002
to those shareholders registered at the close of business on 28th March
2002.
Copies of the annual report and accounts will be posted to shareholders in
February 2002.
CONSOLIDATED PROFIT AND LOSS ACCOUNT
(Unaudited)
2000 2001 FOR THE YEAR ENDED 30th
SEPTEMBER Notes 2001 2000
SAR000 SAR000 US$000 US$000
273,761 376,191 Group revenue including our
share of associated companies 41,799 37,917
(92,893) (142,749) Less revenue of associated
companies (15,861) (12,866)
180,868 233,442 Group revenue 25,938 25,051
(170,760)(217,395) Operating costs (24,155) (23,651)
10,108 16,047 Operating profit 1,783 1,400
4,447 18,468 Share of associated companies
results 2,052 616
3,141 2,853 Income from investments -
dividends 317 435
1,444 2,646 - interest 294 200
(9,451) (13,446) Interest paid and similar charges (1,494) (1,309)
9,689 26,568 Profit on ordinary activities
before exceptional items and
tax 2,952 1,342
14,065 58,050 Exceptional items 1 6,450 1,948
23,754 84,618 Profit before tax 9,402 3,290
(3,220) (6,219) Tax (691) (446)
20,534 78,399 Profit after tax 8,711 2,844
(7,213) (10,143) Minority interests (1,127) (999)
13,321 68,256 Profit attributable to
shareholders 7,584 1,845
(43) (3,195) Appropriation to legal reserve (355) (6)
(3,870) (4,824) Proposed dividend (536) (536)
9,408 60,237 Retained profit for the year 6,693 1,303
SAR 2.12 SAR 10.8 Basic earnings per share US
cents 2 120.4 c 29.3 c
SAR 2.05 SAR 10.84 Fully diluted earnings per
share US cents 120.4 c 28.4 c
SAR 0.50 SAR 1.62 Headline earnings per share
US cents 2 18.0 c 6.9 c
SAR 0.61 SAR 0.77 Dividend per share US cents 8.5 c 8.5 c
Notes:
1) Exceptional Items
SAR000 SAR000 US$000 US$000
7,162 63,324 Surplus on disposal of investments 7,036 992
6,506 27 Surplus on disposal of tangible
fixed assets 3 901
- (5,301) Devaluation of South African
investment properties (589) -
397 - Share of associate - 55
14,065 58,050 6,450 1,948
2).Earnings per share are based on the results attributable to shareholders
and a weighted average number of shares in issue during the year - 6,300,000
(2000 - 6,300,000).
SUMMARISED CONSOLIDATED BALANCE SHEET
(Unaudited)
2000 2001 as at 30 September 2001 2000
SAR000 SAR000 US$000 US$000
Fixed assets
156,190 182,097 Tangible assets 20,233 21,633
74,084 105,453 Investments in listed associated
companies 11,717 10,261
(market value US$13,876,000
(2000 - US$9,769,000))
50,634 21,465 Listed general portfolio 2,385 7,013
(market value US$3,281,000
(2000 - US$14,947,000))
845 4,887 Unlisted associates and other
investments 543 117
281,753 313,902 34,878 39,024
Current assets
37,371 63,594 Inventories 7,066 5,176
29,732 44,496 Debtors 4,944 4,118
10,779 72,747 Cash and bank balances 8,083 1,493
77,882 180,837 20,093 10,787
Current liabilities
(77,875) (82,386) Creditors
(falling due within one year) (9,154) (10,786)
7 98,451 Net current assets 10,939 1
281,760 412,353 Total assets less current
liabilities 45,817 39,025
(27,985) (31,365) Creditors (falling due after more
than one year) (3,485) (3,876)
(19,161) (23,724) Provisions for liabilities and
charges Deferred taxation (2,636) (2,654)
234,614 357,264 39,696 32,495
Capital and reserves
68,229 85,050 Called up share capital 9,450 9,450
17,407 - Share premium account - 2,411
48,808 67,392 Other reserves 7,488 6,760
43,168 127,593 Retained earnings 14,177 5,979
177,612 280,035 Shareholders' funds 31,115 24,600
57,002 77,229 Minority interests 8,581 7,895
234,614 357,264 39,696 32,495
SAR 36.89 SAR 47.52 Net assets per share, including
investments at market value $5.28 $5.11
SAR 13.21 SAR 24.84 Net assets per share, outside
Africa $2.76 $1.83
SAR 23.68 SAR 22.68 Net assets per share, inside Africa $2.52 $3.28
CONSOLIDATED CASH FLOW STATEMENT
2000 2001 for the year ended 30th September 2001 2000
SAR000 SAR000 US$000 US$000
Operating activities
368 16,164 Cash generated from operations 1,796 51
(9,451) (7,956) Interest paid (884) (1,309)
(3,754) (5,436) Taxation paid (604) (520)
(12,837) 2,772 Net cash outflow from operating
activities 308 (1,778)
Investment activities
2,924 (1,593) Purchase of tangible assets (177) 405
(21,696) (4,518) Purchase of investments (502) (3,005)
30,750 97,038 Disposal of investments 10,782 4,259
4,585 5,499 Interest received and other
investment income 611 635
1,639 2,664 Dividends received from associates 296 227
18,202 99,090 Net cash inflow from investment
activities 11,010 2,521
5,364 101,862 Net cash inflow before financing 11,318 743
Financing activities
1,697 (2,205) Decrease in long term debt (245) 235
- (5,490) Foreign exchange cost of
subsidiary's dividend (610) -
(3,870) (4,824) Dividend - group (536) (536)
(549) (1,530) - minorities (170) (76)
(2,722) (14,049) Net cash outflow from financing
activities (1,561) (377)
2,642 87,813 Net decrease in debt 9,757 366
(25,176) (24,750) Net debt at 1st October (2,750) (3,487)
2,679 3,429 Effect of foreign exchange
rate changes 381 371
(19,855) 66,492 Net cash/(debt) at 30th September 7,388 (2,750)
CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES
2000 2001 2001 2000
SAR000 SAR000 US$000 US$000
18,989 - Group share of surplus on
revaluation of properties - 2,630
Exchange differences on
translation of the financial
statements
(29,097) (1,602) of foreign entities (178) (4,030)
(10,108) (1,602) Net loss not recognised in the
income statement (178) (1,400)
13,321 68,256 Net profit for the period 7,584 1,845
3,213 66,654 Total recognised profits 7,406 445
- (3,195) Transfer to legal reserve (355) -
(3,870) (4,824) Proposed dividend (536) (536)
(657) 58,635 Increase/(decrease) in
shareholders' funds 6,515 (91)
178,269 221,400 Shareholders' funds brought forward 24,600 24,691
177,612 280,035 Shareholders' funds carried forward 31,115 24,600
Notes:
1. These preliminary results for the year ended 30th September 2001 and the
balance sheet at that date, which are unaudited, have been prepared on the
basis of accounting policies adopted for the period ended 30th September
2000. These financial statements do not comply with the requirements of IAS
29 (Financial reporting in Hyperinflationary Economies). The results, which
have been reviewed by the Company's auditors, Deloitte & Touche S.A., are
unaudited.
2. Net group capital expenditure in the year was US$429,000 ÝR3,861,000¨
(2000 - negative US$405,000 Ýnegative R2,924,100¨); there were no capital
expenditure commitments at 30th September 2001 (2000 - US$ nil ÝRnil¨).
3. Bank loans and overdrafts of US$2,667,000 ÝR24,003,000¨ (2000:
US$4,243,000 ÝR30,634,460¨) are included in current liabilities. Group long-
term finance is secured on various local properties and bears interest at
local commercial rates.
DIRECTORS'LIST TO BE INCLUDED WITH MONTEAGLE REGISTERED AND REGIONAL OFFICES
Directors:
Holding Company
J.M. Robotham*, A.R.C. Barclay*, R.C. Kerr*, D.C. Marshall"
Divisional and National
L.H. Marshall*, E.J. Beale*, W.H. Marshall", O.H. Marshall", P.N. Lonsdale",
D.A. Greer", G.K. Vacy-Lyle", T.R. Maarschalk", A.D. Beattie#, C.P. Jousse#,
A.C. Vacy-Lyle'
(* British "South African #Zimbabwean 'Australian)
