| Mon 2 Jun 2008, 17:56 | | MTE - Marshall Monteagle Holdings Societe Anonyme - Unaudited interims for 6 |
|
MTE
MTE
MTE - Marshall Monteagle Holdings Societe Anonyme - Unaudited interims for 6
month period ended 31 March 2008 and dividend declaration
Marshall Monteagle Holdings Societe Anonyme
(Formerly 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
UNAUDITED INTERIMS FOR 6 MONTH PERIOD ENDED 31 MARCH 2008 AND DIVIDEND
DECLARATION
Dear Shareholder,
We are pleased to be able to report a successful six months of operating
activities and further appreciation of the group`s investments.
Results
* Group revenue is up 37% to US$56,351,000 for the six months to 31st March
2008, compared to US$41,152,000 (34% excluding Merchant Group).
* Operating profit has increased by 22% to US$2,709,000 from US$2,229,000
last year.
* Profit before tax and exceptional items is up 3% to US$2,000,000 from
US$1,951,000.
* Substantial increase in number of shares in issue from 13,440,000 to
16,536,717 on acquisition of "Merchant Group".
* Minor dilution of headline earnings per share from US$5.3 cents to US$4.8
cents due to the increased capital.
* Interim dividend increased from US$1.85 cent to US$2.00 cents.
* Net assets increased from US$3.33 per share (31st March 2007) to US$3.57
per share. Net assets at 30th September 2007 were US$3.76 cents per share
and have reduced marginally over the six months to March 2008 to US$3.57
cents due to the weakening of the South African rand.
Import, Export & Distribution
Our shipping and distribution business showed further growth during the six
month period under review and we anticipate a positive second half of 2008.
This division continues to provide procurement, supply chain and risk management
services to multiple retailers, wholesalers and manufacturers in South Africa
and Australia and is complemented by dedicated producers of quality raw
materials, skilled technologists and first world production facilities.
We are currently operating in an extremely challenging environment with
significant raw material price increases, inconsistent availability and volatile
currency movements and it would appear that these conditions will remain over
the next six months and probably well into the 2009 financial year. We are well
positioned to operate in these market conditions and continually strive to
anticipate our clients needs and exceed their expectations.
Our tool import and distribution business has had a difficult period, although
concern over interruption of electricity supply has increased sales of back-up
generators and inverters and strong sales of these units are continuing.
The weakening of the Rand, rising manufacturing costs due to raw material and
labour increases as well as the South African retail market being slowed by high
interest rates are creating challenges. Taking these facts into account we have
continued to strengthen our position as a preferred supplier to our retail
customers through innovation, stock availability, on-time delivery and
consistent after sales service. Although we expect retail growth to be slow in
the second half we are confident we will have a stronger performance than in the
first half.
Property Portfolio
The group`s portfolio of commercial properties in the US and South Africa
enjoyed low vacancy rates and continues to produce satisfactory returns. Demand
for quality properties in the San Diego region remains very high, however it is
envisaged that the recent shake out in the credit markets will provide more
investment opportunities for your board to consider in future.
Investment Portfolio
As anticipated, 2008 is proving to be a far more challenging year for equity
investors with most global markets depreciating substantially during the first
quarter; volatility is also on the increase. Our strategy of holding a diverse
portfolio of quality equities in the first world is standing us in good stead,
as is evidenced by the relatively small fall in the value of our investments.
Conafex (listed associate)
Conafex Holdings Societe Anonyme is an African focused agri resource group
currently listed in Luxembourg and South Africa. Conafex has strategic and
controlling stakes in businesses engaged in the export of fresh produce to
European markets, the roasting, marketing and branding of arabica coffee in
South Africa, the processing and export of herbal teas, plant extracts,
essential oils and dried and decorative fruit. The scale of Conafex`s
underlying investments does not justify a stock exchange listing and the process
to delist the group has been initiated.
Halogen (listed associate)
Halogen`s associate, Heartstone Inns acquired a fourth pub in January 2008, but
is still loss making as the contribution from its pubs does not yet cover
central costs. Halogen is arranging the cancellation of its listing in Harare
which will save costs.
Net Assets
Since March 2007, net assets have increased from US$44,739,000 (US$3.33 per
issued share) to US$59,020,000 (US$3.57 per issued share) due to the increase in
capital. Net assets outside Africa, net of minority interests and proposed
dividends, now stand at US$40,603,000, equal to US$2.46 per share.
Interim dividend
We are pleased to announce that the Company has declared an interim dividend of
US 2.0 cents per share payable on 8th August 2008 to shareholders on the
register at the close of business on 27th June 2008. The equivalent for 2007
was US 1.85 cents.
Last day to trade (JSE) Friday 20 June 2008
Shares trade ex dividend
(JSE) Monday 23 June 2008
Shares trade ex dividend
(LuxSE and LSE) Wednesday 25 June 2008
Record date (LuxSE, JSE and
LSE) Friday 27 June 2008
Pay date Friday 8 August 2008
Currency conversion date Monday 2 June 2008
Shareholders are hereby advised that the exchange rate to be used will be US$
1.00 = R7.6377. This has been calculated as the average of the bid/ask spread
at the opening of business (United Kingdom time) on 2nd June 2008. Consequently
the dividend of US 2.00 cents will be equal to 15.2754 South African cents.
No dematerialisation and rematerialisation of share certificates may take place
between Monday 23 June 2008 and Friday 27th June 2008 or transfer of shares
between the registers in Luxembourg and SA and UK and SA may take place between
Friday 20 June 2008 and Friday 27th June 2008, both days inclusive.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made.
Prospects
The second half of the financial year which is historically the more profitable
shows encouraging results. During April and May the budgets for our operating
subsidiaries have been exceeded and our investments have appreciated in spite of
turbulent financial markets.
Inflation in commodity prices dictates that we must maintain a strong and liquid
balance sheet to finance the need for increased working capital. The
substantial oil price rise continues to fuel worldwide inflation and vast
transfers of international wealth. In spite of the present uncertainties we
remain confident of producing satisfactory results for the coming year.
J.M. Robotham, D.C. Marshall
Chairman Chief Executive
CONSOLIDATED GROUP INCOME STATEMENT
Half years ended Year
ended
31st March 30th
September
2008 2007 2007
Not Unaudi Unaudi Audite
es ted ted d
US$000 US$000 US$000
Group revenue 2 56,351 41,152 90,449
Operating costs (53,64 (38,92 (84,41
2) 3) 7)
Operating profit 2,709 2,229 6,032
Share of associated companies` (389) (118) 24
results
Income from investments - dividends 162 147 496
- interest 174 137 313
2,656 2,395 6,865
Interest paid and similar charges (678) (439) (1,889
)
Realised exchange gains/(losses) 22 (5) (293)
Profit on ordinary activities before 2,000 1,951 4,683
exceptional items and taxation
Exceptional items 3 1,556 2,978 10,452
Profit before taxation 2 3,556 4,929 15,135
Taxation (653) (696) (2,343
)
Profit after taxation 2,903 4,233 12,792
Attributable to outside shareholders (660) (1,164 (2,566
) )
PROFIT ATTRIBUTABLE TO SHAREHOLDERS 2,243 3,069 10,226
Interim dividend per share (US cents) 2.00c 1.85c 1.85c
Recommended final dividend (US cents) n/a n/a 2.65c
Reconciliation of headline earnings
per share
Basic earnings per share (US cents) 4 13.6 c 22.8 c 69.4 c
Less exceptional items, net of tax (8.8)c (17.5) (58.6)
and minority interests (US cents) c c
Headline earnings per share (US 4 4.8 c 5.3 c 10.8 c
cents)
STATEMENT OF CHANGES IN EQUITY
Exchange differences (3,487) (242) 453
Group share of fair value adjustments on (1,028) 1,901 3,319
investments
Net gains not recognised in the income (4,515) 1,659 3,772
statement
Profit attributable to shareholders 2,243 3,069 10,226
Shares issued - - 8,052
Final dividend approved for the prior (438) (336) (336)
year
Interim dividend declared (331) (305) (305)
(3,041) 4,087 21,409
Shareholders` funds at start of period 62,061 40,652 40,652
Shareholders` funds at end of period 59,020 44,739 62,061
CONSOLIDATED GROUP BALANCE SHEET
31st March 30th
September
2008 2007 2007
Unaudite Unaudi Audite
d ted d
US$000 US$000 US$000
Non-current assets
Property, plant and equipment 36,672 18,806 40,549
Investments
Listed associates 4,544 2,868 3,592
General portfolio - other listed 24,445 24,822 24,957
investments
Other unlisted 580 500 525
Goodwill 403 - -
66,644 46,996 69,623
Current assets
Inventories 16,806 13,579 18,246
Investments - - 610
Accounts receivable 19,235 16,848 18,613
Cash 6,474 2,295 7,502
42,515 32,722 44,971
Current liabilities
Accounts payable (falling due within one (23,030) (18,79 (24,39
year) 0) 8)
Net current assets 19,485 13,932 20,573
Total assets less current liabilities 86,129 60,928 90,196
Accounts payable (falling due after more (12,501) (9,344 (11,21
than one year) ) 6)
Provisions for liabilities and deferred (2,378) (96) (3,031
taxation )
71,250 51,488 75,949
Capital and reserves
Share capital 24,805 20,160 24,805
Share premium account 3,407 - 3,407
Other reserves 15,374 12,576 17,990
Retained earnings 15,434 12,003 15,859
Shareholders` funds 59,020 44,739 62,061
Minority interests 12,230 6,749 13,888
71,250 51,488 75,949
CONSOLIDATED CASH FLOW STATEMENT
Half years ended Year
ended
31st March 30th
September
2008 2007 2007
Unaudite Unaudit Audited
d ed
US$000 US$000 US$000
Operating activities
Cash generated from /(absorbed by) 2,292 (290) (161)
operating activities
Interest paid (678) (439) (1,889)
Taxation paid (1,656) (981) (1,520)
Net cash outflow from operating (42) (1,710) (3,570)
activities
Investment activities
Purchase of property, plant and (24) (492) (647)
equipment
Purchase of investments (2,101) (7,243) (5,369)
Cash acquired with subsidiary, net of - - 689
costs
Disposal of property, plant and 103 1 -
equipment
Disposal of investments 1,088 4,712 9,395
Interest received and other investment 336 397 809
income
Net cash (outflow)/inflow from (598) (2,625) 4,877
investment activities
Net cash outflow before financing (640) (4,335) 1,307
Financing activities
Net increase in long term debt 1,285 4,096 3,435
Dividends paid (305) - (571)
Net cash inflow from financing 980 4,096 2,864
activities
Net increase/(decrease) in funds 340 (239) 4,171
Net funds at start of period 3,209 (1,045) (1,045)
Effect of foreign exchange rates (78) 75 83
Net funds at end of period 3,471 (1,209) 3,209
NOTES TO THE INTERIM STATEMENT
1. The results and the cash flow statement for the half-year ended 31st March
2008 are unaudited and comply with IAS 34 - Interim Financial Reporting. They
have been prepared on the basis of accounting policies adopted in the accounts
for the year ended 30th September 2007 which comply with International Financial
Reporting Standards and Luxembourg law. The results for the year to 30th
September 2007 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: -
Half years ended 31st March Year ended 30th
September
2008 2007 2007
US$000 US$000 US$000
Revenu Resul Reve Resul Reven Result
e t nue t ue
Analysed by activity:-
Import/distribution 54,416 2,735 40,4 2,643 88,14 6,492
53 1
Property 1,935 543 699 110 2,308 635
Other - (211) - (245) - (579)
56,351 3,067 41,1 2,508 90,44 6,548
52 9
Share of associated (389) (118) 24
companies results:-
Interest paid (678) (439) (1,889)
2,000 1,951 4,683
Exceptional items 1,556 2,978 10,452
Profit before tax 3,556 4,929 15,135
3. The exceptional items arise from the following.
31st March 30th
September
2008 2007 2007
US$000 US$000 US$000
Surplus on disposal of listed and 258 4,776 4,237
unlisted investments
Property revaluations 93 - 4,541
Loss on disposals of tangible fixed (141) - (19)
assets
Release of/(Charge for) provisions 1,346 (1,521) 508
against associates
Negative goodwill written off - - 1,471
Costs for restructuring long term finance - (277) (286)
Net exceptional items 1,556 2,978 10,452
4. Earnings per share are based on profits attributable to members and on the
average of 16,536,717 shares in issue during the period. Headline earnings per
share exclude extraordinary items after tax net of minority interests.
5. A geographical analysis of the General Portfolio of investments is as
follows:-
United Kingdom 7,840 6,735 7,928
United States of America 4,624 6,139 5,245
Europe, excluding the U.K. and 5,484 5,689 5,419
Switzerland
Switzerland 5,355 4,411 5,172
Japan 1,142 1,174 1,193
South Africa - 674 -
24,445 24,822 24,957
6. Net assets per share are based on Shareholders` funds after allowance for
proposed dividends, divided by the number of shares in issue of 16,536,717 at
the period end (2007: March - 13,440,000; September - 16,536,717).
7. There was capital expenditure of US$24,000 during the period (2007 -
US$492,000). There was no contracted or outstanding authorised capital
expenditure at the balance sheet date.
Date: 02/06/2008 17:56:03 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.
