| Wed 14 Feb 2001, 0:00 | | Gencor Limited - Interim Report |
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GENCOR LIMITED
INTERIM REPORT for the six months ended 31 December 2000
INCOME STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2000 1999 2000
(R million) Notes Unaudited Unaudited Audited
Ordinary dividend
from Implats 434,6 104,1 538,7
Special dividend from
Implats 918,2 - -
Dividends from
unbundled investments - 14,3 29,7
Dividend income from
investments 1 1 352,8 118,4 568,4
Net interest income 12,2 11,2 23,7
Other income 8,1 4,3 5,9
Unbundling, delisting
and reconversion costs (2,7) (0,5) (10,8)
Net corporate costs (7,5) (9,7) (22,0)
Income before taxation 1 362,9 123,7 565,2
Taxation (3,1) (3,3) (23,3)
Income after taxation 1 359,8 120,4 541,9
Net equity accounted
income 2 (312,9) 257,5 482,8
Share of attributable
income from Implats 1 039,9 361,6 1 021,5
Less: Ordinary dividend (434,6) (104,1) (538,7)
Equity accounted retained
income for period 605,3 257,5 482,8
Less: Special dividend (918,2) - -
Attributable income 1 046,9 377,9 1 024,7
Weighted average number
of shares in issue (m) 348,6 348,6 348,6
Earnings per share (cents)
Attributable earnings 300,3 108,4 294,0
Headline earnings 301,1 108,6 297,1
Dividends per share (cents)
Ordinary 124 34 163
Special 264 - -
BALANCE SHEET
Investments 2 & 3 2 160,9 4 019,3 2 473,8
Other non-
current assets 60,5 58,9 60,8
Current assets 1 569,7 359,0 662,4
Total assets 3 791,1 4 437,2 3 197,0
Capital and reserves 2 355,8 4 235,0 2 661,4
Current liabilities and
provisions 1 435,3 202,2 535,6
Total equity and
liabilities 3 791,1 4 437,2 3 197,0
STATEMENT OF CHANGES
IN SHAREHOLDERS' EQUITY
Opening balance 2 661,4 3 975,6 3 975,6
Cash dividends (1 352,5) (118,5) (568,2)
Dividends in specie - - (1 770,7)
Attributable income 1 046,9 377,9 1 024,7
Total shareholders' equity 2 355,8 4 235,0 2 661,4
CASH FLOW STATEMENT
Cash generated by
operating activities 451,0 249,1 357,7
Dividends paid (449,7) (244,0) (362,5)
Net cash from operating
activities 1,3 5,1 (4,8)
Unbundling, delisting and
reconversion costs (2,7) (0,5) (10,8)
Net change to other
non-current assets 0,3 76,4 74,5
Net (decrease)/increase in cash (1,1) 81,0 58,9
Closing cash balance 209,8 233,0 210,9
VALUATION OF INVESTMENTS
Implats 11 808 7 621 7 719
Unbundled investments - 3 303 -
Market value of listed
investments 11 808 10 924 7 719
Number of shares
in issue (m) 348,6 348,6 348,6
Closing share
price on JSE (cents) 3 100 2 675 1 950
Gencor's market
capitalisation (Rm) 10 806 9 325 6 798
Gencor's discount to
market value of
listed investments (%) 8,5 14,6 11,9
NOTES TO THE FINANCIAL STATEMENTS
1. Dividends are recognised in the accounting period in respect of which they
are declared.
2. Implats is equity accounted, whereas all other investments are cost
accounted.
3. Investments are recorded at book value and, where appropriate, include post
acquisition income and reserves.
4. The company has given certain limited warranties and an indemnity, for five
years and capped at an aggregate amount of US$220 million, to Billiton Plc in
relation to the businesses that were transferred to it in July 1997. Gencor
also has certain obligations relating to the closure of the Prima Lirang gold
mine in Indonesia that expires in 2002. The sales of various other assets carry
warranties and indemnities that should not exceed R10 million. The directors do
not anticipate any losses, additional commitments or claims from these
arrangements. There are no legal or arbitration proceedings including any that
are pending or that Gencor is aware of or any obligations relating thereto,
that have had or that may have, in the opinion of the directors, a material
effect on Gencor's financial position and accordingly no contingencies or
provisions have been raised therefor.
5. Comparative figures may not be directly comparable.
Results
Gencor's attributable income at R1 047 million is 177% higher than the R378
million achieved in the corresponding previous six months, and exceeds the R1
025 million reported for the whole of the last financial year. This increase in
profitability is primarily due to firm demand and a tight supply situation
driving up the prices of the platinum group metals produced by Impala Platinum
Holdings Limited ("Implats").
Dividend income comprises an ordinary dividend of R435 million and a special
dividend of R918 million from Implats, in total R1 353 million (R118 million in
December 1999), and is more than double the total dividend income of R568
million posted for the whole of financial year 2000.
Net interest received of R12 million and surpluses on the share incentive trust
of R4 million are largely the same as the amounts earned last year. Income from
dividends forfeited in terms of the new articles of association amounts to R4
million. R3 million was incurred on the delisting from the European exchanges
and on the reconversion of the bearer warrants. Corporate costs of R8 million
were recorded for the six-month period(R10 million in 2000).
Investments
Implats
This half year under review marked another stunning performance by Implats as a
result of robust demand and Russian supply uncertainties continuing to fuel
platinum and palladium prices to record levels. Attributable income of R2 245
million for these six months was consequently some 188% more than the R779
million earned in the first six months of last year and higher than the R2 205
million achieved for the financial year ended June 2000. Aside from the
significant impact of the buoyant platinum group metal prices on tolling income
and the contribution from Implats' 27% investment in Lonplats, an increase in
net interest receipts also added to Implats' superlative earnings.
As a consequence of its sparkling results Implats raised its interim dividend
to 1 420 cents per share (340 cents in the first half of financial year 2000).
Implats also declared a special dividend of 3 000 cents per share in
recognition of the extraordinarily strong cash flows experienced.
Implats remains Gencor's strategic core investment.
Market value
The R11,5 billion market value of the investment in Implats at the end of
December 2000 surpassed the R10,9 billion market value of the whole of Gencor's
portfolio at 31 December 1999, which incorporated the interests in Gold Fields
Limited, Gold Fields of South Africa Limited and Standard Bank Investment
Corporation Limited that were distributed in the second half of the 2000
financial year.
European Listings
On 31 December 2000 Gencor's listings on the London Stock Exchange and
Frankfurt, Paris and Swiss Bourses were terminated and Gencor's share warrants
to bearer were compulsorily reconverted to ordinary shares, all at a cost of R3
million.
Prospects
Another full financial year of record profit lies ahead for Implats. Platinum
group metal prices are forecast to remain firm and the rand is not expected to
strengthen significantly. The implementation of Implats' growth strategy is
well underway, so assuring it an exciting future.
Dividends
In line with the policy of distributing, to the extent possible, all dividend
income received from investments and to recognise the underlying nature of
those receipts, the Board has declared an interim dividend of 124 cents per
share (2000: 34 cents per share) and a special dividend of 264 cents per share,
absorbing R1 353 million in total.
For and on behalf of the Board
JM McMahon (Chairman) Johannesburg
MV Mennell (Director) 14 February 2001
Gencor Limited
Registration number 1895/001232/06
Interim dividend no 150 of
124 cents per share and a Special
dividend of 264 cents per share
An interim dividend no. 150 of 124 cents (2000: 34 cents) per ordinary share
and a special dividend of 264 cents per ordinary share have been declared, both
payable on Wednesday, 11 April 2001 to shareholders registered at the close of
business on Friday, 9 March 2001. The share register will be closed from 16
March 2001 to 30 March 2001, both dates inclusive.
The dividends are payable in the currency of the Republic of South Africa.
Company secretary and registered office
J Marais (B Proc, LLB)
KPMG Crescent, North Wing, First Floor, 85 Empire Road, Parktown 2193.
Postnet Suite 222, Private Bag X30500, Houghton, 2041.
Telephone: +27 11 647 6203 Telefax: +27 11 484 1653
LONDON OFFICE
Project Consultants Limited
Walnut House, Walnut Gardens, Claydon, Banbury, Oxon OX17 1NA
Telephone: +44 1295 690180 Telefax: +44 1295 690182
TRANSFER SECRETARIES
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg 2001
P O Box 1053, Johannesburg 2000
Telephone: +27 11 370 5000 Telefax: +27 11 370 5271/2
