| Thu 24 Jun 2004, 9:42 | | Results For Half Year Ended 31st March 2004 |
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Monteagle - Unaudited Interim Results For The Half Year Ended 31st March 2004
Release Date: 24/06/2004 07:05:01 Code(s): MTE
MONTEAGLE - UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 31ST MARCH 2004
Monteagle Holdings Societe Anonyme
(`Monteagle`)
(Incorporated in Luxembourg - RC Luxembourg No. B 19600)
JSE Share Code: MTE
ISIN Code: LU0035797272
UNAUDITED INTERIM RESULTS FOR THE HALF YEAR ENDED 31ST MARCH 2004
Dear Shareholder,
We are pleased to be able to report a successful half year and continuing
significant growth in our import, export and distribution businesses, while
income from our investment portfolios in the form of dividends and interest also
increased.
Results
- Group revenue is up 83% to US$30,656,000 for the six months to 31st March
2004, compared to US$16,752,000, mainly because of a substantial increase
in the volumes handled by our import, export and distribution businesses.
- Profit before interest, tax and exceptional items is up 217% to
US$1,662,000 from US$525,000.
- Interest charges have increased 29% to US$387,000 reflecting increased
funding costs for these higher volumes of business.
- Headline Earnings per share for this half year have increased to US 11c
compared to US 6c for the second half of last year and a loss in the first
half of last year of US$ 1c.
- Earnings per share have increased 62% to US 21c from US 13c last year
- Net assets attributable to shareholders are up 9% to US$5.08 from US$4.64
at 30th September of which US$3.27 are held outside Africa
Import, Export & Distribution
As noted above, turnover and volumes have increased significantly over the last
year as a result of our long term policy of building a broad spread of suppliers
and customers on an international basis. We are now sourcing product for our
international trade in private label food and non-food businesses from an even
more varied range of countries throughout Europe, the Far East, Southern Africa
and South America. These products are being sold in an equally wide ranging
number of countries including Australia, Japan, South Africa, the United Kingdom
and the United States of America.
The tool import and distribution businesses in South Africa and Australia have
continued to reflect solid growth in both turnover and volumes during the first
six months and prospects for the second half of the financial year look positive
with a number of new product ranges being launched during this period.
Property Portfolio
Our remaining multi-tenanted property in California is fully let and producing
satisfactory returns. The property market in California is buoyant and we
continue to search for another suitable property capable of generating the
required yield. In the meantime we have an investment of US$2.9 million in US
Treasury bills. Rental income from South Africa improved in US dollar terms and
the Group has recently invested in increased warehouse capacity in Durban
financed by a fixed interest rate, 10 year, reducing mortgage in SA Rands.
Investment Portfolio
The Group`s diverse portfolio of equities achieved good gains during the past
six months and dividend income increased. We remain invested in quality
equities in the major first world markets. While the outlook currently looks
favourable, higher oil and energy costs may have a tempering effect in the year
ahead.
Food Production and Processing
Our subsidiary, Conafex Holdings Societe Anonyme (`Conafex`) made two
significant and strategic acquisitions in South Africa during the period under
review. On 19th November 2003, a 50% stake was acquired in Coffee, Tea and
Chocolate Company (Pty) Limited (`CTC`), based in Cape Town. CTC is a well
established and dynamic business that adds value to primary agricultural
produce, mainly black and herbal teas and coffee, through packaging, branding
and marketing into leading supermarkets in South Africa. CTC is benefiting from
the strength of the SA Rand as much of its raw material is imported from the
rest of Africa.
On 4th November 2003, Conafex acquired a 17.5% stake in Intertrading Limited, a
company listed on the JSE Securities Exchange South Africa. Intertrading
procures a range of fresh South African agricultural produce that it markets
internationally, and also provides freight forwarding and logistic services for
the export of perishable cargo from South Africa. In concert with Conafex,
Katope International Societe Anonyme simultaneously acquired 17.5% of
Intertrading. Katope is European based and is a specialist in the production,
packaging, export, logistics, distribution and marketing of tropical, exotic
fruit and citrus to global markets. We expect synergies to flow from this
strategic alliance with Katope. Intertrading has declared a dividend for its
year ended 29th February 2004 and Conafex expects to receive a dividend of
R87,250 in July.
The farming activities in Zimbabwe are under review and the outlook there
remains grim.
Mining
We have a 49.9% interest in Falcon Investment Holdings Societe Anonyme
(`Falcon`) whose subsidiary in Chile, having sold its iodine project, is in the
process of being liquidated Once the necessary tax and exchange control
formalities have been completed the remaining funds will be returned to Europe.
Falcon is seeking to re-invest these proceeds in an established profitable
business in a hard currency area.
The fortunes of our mines in Zimbabwe continue to fluctuate widely depending on
changes in the Government`s policy for the amount that it pays to compulsorily
acquire the gold that we produce.
Zimbabwe
As in previous periods, the Group does not consolidate the results of its
Zimbabwean operations, bringing into account only dividend income received in
Luxembourg. There have been no such remittances during the half year. Our
thanks continue to go to our staff for maintaining operations under severe
economic and political circumstances.
We particularly wish to send our condolences to the family of Graham Parsons, a
long term contributor to the Group`s operations, after his sudden death in May
this year.
Net Assets
Group net assets have increased substantially. They now stand at US$5.08 per
share (US$31,977,000 at market value, net of minority interests and proposed
dividends), compared to US$4.64 per share (US$29,643,000) at 30th September
2003, and US$4.40 per share (US$27,720,000) a year ago. Net assets outside
Africa now stand at US$20,958,000 which equates to US$3.27 per share compared to
US$2.88 per share (ex-dividend) at September 2003.
Prospects
It is pleasing to see the success of our investment in import, export and
distribution businesses, and the progress being made by Conafex and Falcon to
broaden the base and diversity of their investments. The Group, on current
trends, is on course for its trading results for the second half to be very
satisfactory.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
UNAUDITED CONSOLIDATED GROUP PROFIT AND LOSS ACCOUNT
Half years ended Year ended
31st March 30th
September
2004 2003 2003
Notes Unaudited Unaudited Audited
US$000 US$000 US$000
Group revenue 2 30,656 16,752 37,046
Operating costs (29,483) (16,304) (35,762)
Operating profit 1,173 448 1,284
Share of associated 86 (140) (8)
companies` results
Income from Zimbabwean - 20 53
investments - dividends
Income from investments - 289 134 256
dividends
- interest 114 63 160
1,662 525 1,745
Interest paid and similar (387) (300) (534)
charges
Realised exchange 218 (4) (22)
gains/(losses)
Profit on ordinary 1,493 221 1,189
activities before
exceptional items and
taxation
Exceptional items 3 640 1,294 2,451
Profit before taxation 2,133 1,515 3,640
Taxation (422) (157) (1,316)
Profit after taxation 2 1,711 1,358 2,324
Attributable to outside (418) (526) (743)
shareholders
PROFIT ATTRIBUTABLE TO 1,293 832 1,581
SHAREHOLDERS
Dividend per share (US - - 6.0c
cents)
Earnings per share (US 4 21c 13c 25c
cents) - basic
Headline earnings per 11c (1)c 5c
share (US cents)
Reconciliation of
headline earnings per
share
Basic earnings per share 21 c 13 c 25 c
(US cents)
Less exceptional items, net of (10)c (14)c (20)c
tax and minority interests (US
cents)
Headline earnings/(loss) 11 c (1)c 5 c
per share (US cents)
CHANGES IN EQUITY
Net profit for the period 1,293 832 1,581
Exchange differences 618 21 944
Group share of unrealised gains on 809 1,009 1,260
investments and property revaluations
Dividend approved (378) (315) (315)
Total recognised profits 2,342 1,547 3,470
Shareholders` funds at start of 29,643 26,173 26,173
period
Shareholders` funds at end of period 31,985 27,720 29,643
UNAUDITED CONSOLIDATED GROUP BALANCE SHEET
31st March 30th
September
2004 2003 2003
Unaudited Unaudited
US$000 US$000 US$000
Fixed assets
Tangible fixed assets 11,855 9,932 10,798
Investments
Listed associates 1,769 3,828 1,338
Listed - other 8,600 7,094 6,970
Unconsolidated subsidiary 8,444 8,444 8,444
Unlisted associates 1,172 348 360
Other unlisted 402 - 402
Intangibles - trade marks 295 - 269
32,537 29,646 28,581
Current assets
Inventories 7,903 5,338 7,264
Debtors 12,594 4,946 10,839
Cash 7,226 4,315 7,710
27,723 14,599 25,813
Current liabilities
Creditors (falling due (14,406) (6,773) (12,946)
within one year)
Net current assets 13,317 7,826 12,867
Total assets less current 45,854 37,472 41,448
liabilities
Creditors (falling due (6,214) (3,736) (4,890)
after more than one year)
Provisions for liabilities 115 113 102
and deferred taxation
39,755 33,849 36,660
Capital and reserves
Share capital 9,450 9,450 9,450
Other reserves 9,475 7,044 8,056
Retained earnings 13,052 11,226 12,137
Shareholders` funds 31,977 27,720 29,643
Minority interests 7,778 6,129 7,017
39,755 33,849 36,660
UNAUDITED CONSOLIDATED CASH FLOW STATEMENT
Half years ended Year
31st March ended
30th
September
2004 2003 2003
Unaudited Unaudited
US$000 US$000 US$000
Operating activities
Cash generated from 207 199 959
operating activities
Interest paid (387) (304) (534)
Taxation paid (103) (298) (694)
Net cash outflow from (283) (403) (269)
operating activities
Investment activities
Purchase of tangible fixed (2,462) - (388)
assets
Purchase of investments (1,674) (577) (1,106)
Investment in joint venture - - (871)
Disposal of tangible fixed 1,298 26 12
assets
Disposal of investments 427 72 3,478
Interest received and other 403 197 416
investment income
Dividends received from - 20 53
Zimbabwe investments
Net cash( outflow)/inflow (2,008) (262) 1,594
from investment activities
Net cash (outflow)/inflow (2,291) (665) 1,325
before financing
Financing activities
Net increase/(decrease) in 1,279 (33) 977
long term debt
Dividend paid - group - - (315)
- minority shareholders (5) - (28)
Net cash inflow/(outflow) 1,274 (33) 634
from financing activities
Net decrease/(increase) in (1,017) (698) 1,959
funds
Net funds at start of 6,314 4,531 4,531
period
Effect of foreign exchange 128 (9) (176)
rates
Net funds at end of period 5,425 3,824 6,314
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31st March
2004 are unaudited and have been prepared on the basis of accounting
policies adopted in the accounts for the year ended 30th September 2003 and
comply with International Accounting Standards and Luxembourg law. The
results for the year to 30th September 2003 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: -
2003
US$000
Revenue Result Revenue Result Revenue Result
Analysed by
activity:-
Import/distributio 28,303 1,739 15,854 849 34,962 2,065
n
Property 512 164 555 44 1,107 181
Food production 1,580 197 198 (187) 738 (356)
and processing
Mining - dividend - - - 20 - 53
income
Other 261 409 145 1,232 239 1,337
30,656 2,509 16,752 1,958 37,046 3,280
Share of
associated
companies results:-
Food production 11 (22) 11
and processing
Mining - (118) 883
Group revenue
including
associates
Interest paid (387) (303) (534)
Profit before tax 2,133 1,515 3,640
3. The exceptional items arise from the surplus on disposal of investments and
tangible fixed assets.
31st March 30th
September
2004 2003 2003
US$000 US$000 US$000
Surplus on disposal of listed and 208 1,165 1,053
unlisted investments
Surplus on disposals of tangible 65 - 6
fixed assets
Release of/(charge for) provisions 367 (264) -
against investments
Share of associated company`s - 393 1,392
exceptional item, less provision
Exceptional items - net income 640 1,294 2,451
4. 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 which were cancelled on 14th April 2004. 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 capital expenditure of US$2,462,000 during the period (2003 -
nil). There was no contracted, nor outstanding authorised capital
expenditure at the balance sheet date.
Registered Office:
6 rue Adolphe Fischer,
L-1520, Luxembourg
24 June 2004
