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Monteagle -
Monteagle Holdings Societe Anonyme
("Monteagle")
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)
Share Code: MTE ISIN Code: LU0035797272
Registered Office:
6 rue Adolphe Fischer,
L-1520, Luxembourg
27th June 2003
Dear Shareholder,
We are pleased to be able to report an encouraging start to the year as a result
of significant growth in our import, export and distribution businesses. There
was also major corporate activity in our listed subsidiary, Conafex Holdings
S.A.. and our listed associate. Falcon Investments Holdings S.A.
Results
Turnover for the Group, including our share of associates, has increased to
US$16,966,000 (R133,522,420) for the six months to 31st March 2003, compared to
US$8,649,000 (R98,079,660) (restated), mainly because of a substantial increase
in the volumes handled by our import, export and distribution businesses.
Profit before interest, tax and exceptional items has declined slightly from
US$553,000 (R6,271,020) to US$525,000 (R4,131,750) (restated) because of lower
dividends received from Zimbabwe. Interest charges reflect increased funding
costs for the higher volumes in the import and distribution business. Earnings
per share have increased to US 13c (102 SA cents) from US 6c (68 SA cents)
(restated) last year.
Our commercial agribusiness subsidiary, Conafex has generated an exceptional
profit of US$1,177,000 (R9,262,990) from the disposal of part of its holding of
shares in Ariston Holdings Limited, its Zimbabwean farming associate. Sale
proceeds of US$3,000,000 (R23,610,000) were received in Europe in May.
Another exceptional profit of US$339,000 (R2,667,930)arose in our mining
associate, Falcon, from the receipt of a non-refundable premium for an option to
purchase its Chilean iodine development. The option has since been exercised
and we expect to be able to book a profit of a further approximately
US$1,300,000 (R10,231,000) in the second half of the year. Falcon expects to
receive cash proceeds in Europe from this transaction in excess of US$4,000,000
(R31,480,000).
Distribution
Our international trading and private label food production operations
experienced an extremely good half year, reflecting solid growth in volumes
shipped during the period and increased market share on existing product lines.
This trend has continued into the third quarter and we are forecasting continued
growth during the second six months. Margins have declined due to lower margins
on new business and the impact of exchange rate movements. L & G Tool &
Machinery in South Africa continue to grow, and are increasing market share and
profits. Price deflation on imported products has started to have an impact
which will place pressure on turnover for the remaining period but,
notwithstanding this, the outlook for the balance of the year looks good.
Queensland Tool and Machinery in Australia continued to trade profitably,
increasing their volumes for the half year.
Investment Portfolios and Properties
During the period the Group took advantage of value present in certain leading
global equities by adding to its diverse share portfolio. After three years of
falling indices equity markets seem to have stabilised and current values are
looking more realistic on a long term view.
Total income from our properties decreased during the period, mainly due to the
loss of income from our office block in California which was sold in August
2002. The proceeds from this sale will be re-invested in property when a
suitable opportunity occurs. Our multi-tenanted commercial property in San
Diego remained fully occupied and rental income rose once again.
Zimbabwe
The carrying value of our remaining assets in Zimbabwe is now equivalent to US$
0.8 (R6.30) per share and shareholders must continue to regard the value of
these assets with caution. To be prudent, we have only included in these
results dividends received from Zimbabwe in the period. Recent changes to
exchange control regulations mean that it is highly unlikely that we will
receive any dividends from Zimbabwe in the foreseeable future.
Our commercial agricultural activities continue in Zimbabwe, but at a reduced
intensity because of poor rainfall distribution, a shortage of necessary inputs
and the uncertain political and economic outlook. Increased prices for our
exportable produce are expected to partly compensate for lower volumes.
The 3 remaining gold mines in Zimbabwe continue to operate, but are suffering
from increasing interruptions to production caused by power cuts and the lack of
availability of foreign currency to purchase spare parts and consumables.
Despite producing less gold, the mines are now reporting a significant increase
in profits because of an improvement in the proportion of sale proceeds
receivable in foreign currency and the devaluation of the official exchange rate
to Z$824:US$1 (from Z$55:US$1).
Special credit must go to all our employees in Zimbabwe for maintaining the
operations of both the agricultural and gold mining businesses of our Group but
nevertheless we remain very concerned about the future of Zimbabwe.
Conclusion
The Group had assets at market value, net of minority interests, of
US$27,720,000 (R218,156,400) (US$4.4 {R34.63) per share) at 31st March 2003.
This compares to US$25,858,000 (R271,543,320) (US$4.1 (R43.21) per share) at
30th September 2002. Net assets outside southern Africa are again at a record
level and now stand at US$2.86 (R22.51) per share.
We have concentrated our resources over recent years to facilitate continuing
growth in our import and distribution businesses. Our investment portfolios and
Properties are performing creditably in the current environment. Conafex and
Falcon, who have previously traded almost exclusively in Zimbabwe, have recently
succeeded in disposing of some non-core assets and are seeking to diversify by
re-investing the cash generated into suitable businesses outside Zimbabwe.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
Consolidated group profit and loss account
Year ended Half years ended Half years ended Year ende
30th 31st 31st 30th
September March March September
2002 2002 2003 2003 2002 2002
Restated Restated
UnauditedUnaudited NotesUnaudited Unaudited
R000 R000 R000 US$000 US$000 US$000
228,244 98,080 133,522 Group Revenue
including share
of Associates 16,966 8,649 21,655
(4,448) (2,812) (1,684) Less revenue of
Associates (214) (248) (422)
223,796 95,268 131,838 Group revenue 2 16,752 8,401 21,233
(212,803) (92,376) (128,312) Operating costs (16,304) (8,146) (20,190)
10,993 2,892 3,526 Operating
profit 448 255 1,043
(759) (839) (1,102) Share of
associated
companies"
results (140) (74) (72)
5,702 1,962 157 Income from
Zimbabwean
investments -
dividends 20 173 541
1,476 1,179 1,055 Income from
investments -
dividends 134 104 140
1,813 1,077 496 - interest 63 95 172
19,225 6,271 4,132 525 553 1,824
(6,935) (2,631) (2,392) Interest paid
and similar
charges (304) (232) (658)
12,290 3,640 1,740 Profit on
ordinary
activities
before
exceptional
items and
taxation 221 321 1,166
4,922 3,266 10,184 Exceptional 3
items 1,294 288 467
17,212 6,906 11,924 Profit before
taxation 1,515 609 1,633
(5,418) (1,588) (1,236) Taxation (157) (140) (514)
11,794 5,318 10,688 Profit after 2
taxation 1,358 469 1,119
(3,910) (907) (4,140) Attributable to
outside
shareholders (526) (80) (371)
7,884 4,411 6,548 PROFIT
ATTRIBUTABLE TO
SHAREHOLDERS 832 389 748
Dividend per
share (US
cents) - - 5.0c
SA Cents SA Cents SA Cents
126 c 68 c 102 c Earnings per 4
share (US
cents) -
basic 13 c 6 c
53 c 45 c (8) c Headline
(loss)/earnin
gs per share
(US cents) (1) c 4 c
Changes in equity
30th 31st 31st March 30th
September March September
2002 2002 2003 2003 2002 2002
Restated Restated
UnauditedUnaudited Notes Unaudited Unaudited
R000 R000 R000 US$000 US$000 US$000
7,884 4,411 6,548 Net profit
for the
period 832 389 748
(580) (533) 165 Exchange
differences 21 (47) (55)
(49,654) (46,755) 7,941 Group share
of fair value
adjustments 1,009 (4,123) (4,711)
(5,649) (6,078) (2,479) Dividends (315) (536) (536)
(47,999) (48,955) 12,175 Total
recognised
profits
/(losses) 1,547 (4,317) (4,554)
323,862 348,444 205,981 Shareholders"
funds at
start of
period 26,173 30,727 30,727
275,863 299,489 218,156 Shareholders"
funds at end
of period 27,720 26,410 26,173
Consolidated group balance sheet
30th 31st March 31st March 30th
September September
2002 2002 2003 2003 2002 2002
UnauditedUnaudited Unaudited Unaudited
R000 R000 R000 Notes US$000 US$000 US$000
Fixed assets
97,442 123,617 78,165 Tangible fixed
assets 9,932 10,901 9,245
Investments
25,064 19,981 30,126 Listed 3,828 1,762 2,378
associates
58,961 75,763 55,830 Listed - other 7,094 6,681 5,594
89,000 92,070 66,454 Unconsolidated
subsidiary 8,444 8,119 8,444
5,544 5,817 2,739 Unlisted
associates 348 513 526
11 11 - Other unlisted - 1 1
276,022 317,259 233,314 29,646 27,977 26,188
Current assets
45,311 44,453 42,010 Inventories 5,338 3,920 4,299
60,236 49,794 38,925 Debtors 4,946 4,391 5,715
52,932 47,299 33,959 Cash 4,315 4,171 5,022
158,479 141,546 114,894 14,599 12,482 15,036
Current
liabilities
(65,106) (68,119) (53,303) Creditors
(falling due
within one
year) (6,773) (6,007) (6,177)
93,373 73,427 61,591 Net current
assets 7,826 6,475 8,859
369,395 390,686 294,905 Total assets
less current
liabilities 37,472 34,452 35,047
(36,752) (37,195) (29,402) Creditors
(falling due
after more
than one year) (3,736) (3,280) (3,487)
1,233 (159) 889 Provisions for
liabilities
and deferred
taxation 113 (14) 117
333,876 353,332 266,392 33,849 31,158 31,677
Capital and
reserves
99,603 107,163 74,372 Share capital 9,450 9,450 9,450
66,064 77,848 55,435 Other reserves 7,044 6,865 6,268
110,196 114,478 88,349 Retained
earnings 11,226 10,095 10,455
275,863 299,489 218,156 Shareholders"
funds 27,720 26,410 26,173
58,013 53,843 48,236 Minority
interests 6,129 4,748 5,504
333,876 353,332 266,392 33,849 31,158 31,677
Year Half years ended Half years ended Year ended
ended
30th 31st 31st 30th
September March March September
2002 2002 2003 2003 2002 2002
Unaudited Unaudited Unaudited Unaudited
R000 R000 R000 US$000 US$000 US$000
Operating
activities
(7,810) 2,880 1,566 Cash
generated
from/(absorb
ed by)
operating
activities 199 254 (741)
(6,935) (2,631) (2,392) Interest
paid (304) (232) (658)
(4,754) (2,642) (2,345) Taxation
paid (298) (233) (451)
(19,499) (2,393) (3,171) Net cash
outflow from
operating
activities (403) (211) (1,850)
Investment
activities
(3,004) (522) Purchase of
tangible
- fixed assets - (46) (285)
(54,365) (38,295) (4,415) Purchase of
investments (561) (3,377) (5,158)
34,645 205 Disposal of
tangible
- fixed assets 26 - 3,287
(126) Acquisition
of
- - subsidiary (16) - -
8,790 567 Disposal of
- investments 72 - 834
3,288 2,257 1,550 Interest
received and
other
investment
income 197 199 312
5,702 1,962 157 Dividends
received
from
Zimbabwe
investments 20 173 541
(4,944) (34,598) (2,062) Net cash
outflow from
investment
activities (262) (3,051) (469)
(24,443) (36,991) (5,233) Net cash
outflow
before (665) (3,262) (2,319)
financing
Financing
activities
32 (2,324) (260) Net
increase/(de
crease) in
long term
debt (33) (205) 3
(5,649) Dividend
- - paid - group - - (536)
(1,180) - minority
- - shareholders - - (112)
(6,797) (2,324) (260) Net cash
inflow/(outf
low) from
financing
activities (33) (205) (645)
(31,240) (39,315) (5,493) Net decrease
in funds (698) (3,467) (2,964)
78,997 84,993 35,659 Net funds at
start of
period 4,531 7,495 7,495
(1,032) (71) Effect of
foreign
exchange
- rates (9) (91) -
47,757 44,646 30,095 Net funds at
end of
period 3,824 3,937 4,531
Offices:
United Kingdom: South Africa:
25 City Road, 11 Sunbury Park,
London, EC1Y 1BQ La Lucia 4051,
Durban
Transfer agents:
Europe South Africa
Northern Registrars Limited Computershare Limited
Northern House, Woodsome Park, 70 Marshall Street
Fenay Bridge, Huddersfield, Johannesburg 2001
HD8 0LA, U.K. (P.O. Box 61051, Marshalltown, 2107)
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31st March
2003 are unaudited and have been prepared on the basis of accounting policies
adopted in the accounts for the year ended 30th September 2002 and comply with
International Accounting Standards and Luxembourg law. The Group changed its
accounting policy at 30th September 2002 and the results of Zimbabwean
subsidiaries are not consolidated. They have been included in the accounts as
fixed asset investments. Comparative figures for the half year to March 2002
have been restated. The results for the year to 30th September 2002 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 turnover and operating profit is as follows: -
Year ended 30th Half years ended 31st March
September 2002 2002 2003
R000 R000 R000
Revenue Result Revenue Result Revenue Result
Analysed by
activity:-
Import/distri- 203,865 17,159 86,388 7,303 124,771 6,682
bution
Property 15,725 10,782 8,494 2,892 4,368 346
Food production 2,024 137 397 (2,472) 1,558 (1,471)
and processing
Mining - 601 - 363 - 157
Other 2,182 (2,677) 862 1,281 197 9,696
223,796 26,002 96,141 9,367 130,894 15,410
Share of
associated
companies
results:-
Food production 4,448 2,414 2,812 1,780 1,684 (173)
and processing
Mining - (4,100) - (1,395) - (929)
Group revenue 228,244 - 98,953 - 132,578 -
including
associates
Interest paid (7,104) - (2,846) - (2,385)
Profit before 17,212 - - 11,923
tax 6,906
Half years ended 31st March Year ended 30th
2,003 2,002 September 2002
Restated
US$000 US$000 US$000
Revenue Result Revenue Result Revenue Result
Analysed by activity:-
Import/distribution 15,854 849 7,618 644 19,342 1,628
Property 555 44 749 255 1,492 1,023
Food production and 198 (187) 35 (218) 192 13
processing
Mining - 20 - 32 - 57
Other 25 1,232 76 113 207 (254)
16,632 1,958 8,478 826 21,233 2,467
Share of associated
companies results:-
Food production and 214 (22) 248 157 422 229
processing
Mining - (118) - (123) - (389)
Group revenue 16,846 8,726 21,655
including associates
Interest paid (303) (251) (674)
Profit before tax 1,515 609 1,633
The analysis for the year ended 30th September 2002 has been restated to re-
allocate sundry income items, previously reported under Property, into Other.
3. The exceptional items arise from the surplus on disposal of investments and
tangible fixed assets.
30th 31st March 31st March 30th
September September
2002 2002 2003 2003 2002 2002
R000 R000 R000 US$000 US$000 US$000
2,245 9,169 Surplus on disposal of
listed and unlisted
- investments 1,165 - 213
5,618 Surplus on disposals
- - of tangible fixed - - 533
assets
(2,078) Provisions against
- - investments (264) - -
2,668 Share of associated
company"s proceeds
- - from grant of option 339 - -
(2,941) 3,266 425 Share of associated
company"s fair value
adjustment to
investments 54 288 (279)
4,922 3,266 10,184 Exceptional items - 1,294 288 467
net income
Earnings per share are based on profits attributable to members and on the
average of 6,300,000 shares in issue during the period, allowing for the shares
held in Treasury. Headline earnings per share exclude extraordinary items after
tax.
5. Net assets per share are based on Shareholders" funds, after allowance for
proposed dividends, divided by the number of shares in issue of 6,300,000 at the
period end.
6. There was no capital expenditure during the period and no contracted nor
outstanding authorised capital expenditure at the balance sheet date.
Sponsor
The Janus Corporation (Pty) Ltd
Date: 27/06/2003 01:45:15 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
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