| Thu 15 Feb 2001, 0:00 | | Delta Headline Earnings Per Share Up 40% |
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Delta Electrical Industries Limited
(Reg. No. 1919/006020/06)
Directors:
PG Joubert (Chairman), EW van Zyl (Joint Managing), BR Wright (Joint Managing),
PL Campbell, DJ Gleeson, BG Hitchcock, ME Ramano, JP Scott-Maxwell*, PMAM Smits
*British #Netherlands
HEADLINE EARNINGS PER SHARE UP 40%
OPERATING PROFIT UP 36%
DIVIDENDS PER SHARE UP 43%
CASH RETAINED FROM OPERATING ACTIVITIES R170,6 MILLION, UP 52%
Audited group results for the year ended 27 December 2000
Group income statement
2000 1999 %
R000 R000 Change
REVENUE 1 100 975 975 963 13
OPERATING PROFIT 247 877 181 804 36
EXCEPTIONAL ITEMS (55 957) (3 680)
PROFIT BEFORE INTEREST 191 920 178 124
NET INTEREST RECEIVED 3 070 4 154
PROFIT BEFORE TAXATION 194 990 182 278
TAXATION 86 217 60 821
PROFIT AFTER TAXATION 108 773 121 457
OUTSIDE SHAREHOLDERS'
INTEREST 4 161 10 609
ATTRIBUTABLE NET PROFIT 104 612 110 848
DIVIDENDS 63 915 44 741
RETAINED PROFIT 40 697 66 107
Shares in issue and
on which earnings per
share are based 49 166 49 166
Attributable earnings
per share (cents) 212.8 225.5 (6)
Headline earnings
per share (cents) 326.2 232.6 40
Dividends per share (cents) 130.0 91.0 43
Dividend cover (times) 2.5 2.5
Depreciation (R000's) 33 976 30 865
RECONCILIATION OF
HEADLINE EARNINGS
Attributable income
for the period 104 612 110 848
Exceptional items
after tax & minorities:
Goodwill on acquisitions
written off 56 302 3 100
Amortisation of trademarks 412 412
Profit on the
disposal of property,
plant & equipment (199) -
Other (736) (9)
Headline earnings 160 391 114 351 40
Group balance sheet
2000 1999
R000 R000
ASSETS
NON-CURRENT ASSETS 331 517 278 977
CURRENT ASSETS 539 361 536 514
TOTAL ASSETS 870 878 815 491
EQUITY AND LIABILITIES
ORDINARY SHAREHOLDERS'
EQUITY 466 931 410 837
OUTSIDE SHAREHOLDERS'
EQUITY 17 607 39 251
TOTAL EQUITY AND RESERVES 484 538 450 088
CURRENT LIABILITIES 345 522 331 406
NON-CURRENT LIABILITIES 40 818 33 997
TOTAL EQUITY AND
LIABILITIES 870 878 815 491
NET ASSET VALUE PER
SHARE (CENTS) 950 836
NET GEARING (%) nil nil
STATEMENT OF CHANGES IN EQUITY
2000 1999
R000 R000
SHARE CAPITAL AND PREMIUM 117 445 117 445
NON-DISTRIBUTABLE RESERVES 30 295 14 898
BALANCE AT BEGINNING OF YEAR 14 898 6 805
CURRENCY TRANSLATION MOVEMENT 15 397 8 093
DISTRIBUTABLE RESERVES 319 191 278 494
BALANCE AT BEGINNING OF YEAR 278 494 212 387
PROFIT FOR THE YEAR 104 612 110 848
DIVIDENDS PAID AND DECLARED (63 915) (44 741)
TOTAL EQUITY AND RESERVES 466 931 410 837
segmental analysis
2000 1999 %
R000 R000 Change
Revenue
Electrolytic
Manganese Dioxide 474 109 417 287 14
Repairs and Services 515 296 449 874 15
Replacement Parts 111 570 108 802 3
1 100 975 975 963 13
Operating Profit
Electrolytic
Manganese Dioxide 171 560 124 515 38
Repairs and Services 61 439 40 286 53
Replacement Parts 14 878 17 003 (12)
247 877 181 804 36
Segment Assets
Electrolytic
Manganese Dioxide 505 286 445 536 13
Repairs and Services 196 128 177 059 11
Replacement Parts 57 354 53 560 7
Other 10 896 19 470 (44)
769 664 695 625 11
Group cash flow statement
2000 1999
R000 R000
CASH GENERATED
FROM OPERATIONS 279 201 215 326
DECREASE/(INCREASE) IN
WORKING CAPITAL 14 487 (23 058)
TAXATION PAID (68 147) (37 424)
CASH AVAILABLE FROM OPERATING
ACTIVITIES 225 541 154 844
DIVIDENDS PAID (54 951) (42 809)
CASH RETAINED FROM
OPERATING ACTIVITIES 170 590 112 035
INVESTMENT IN BUSINESSES (79 620) (9 524)
REPLACEMENT OF PROPERTY,
PLANT & EQUIPMENT (33 075) (26 590)
EXPANSION OF PROPERTY,
PLANT & EQUIPMENT (47 601) (10 618)
DISPOSAL OF PROPERTY,
PLANT & EQUIPMENT 789 1 302
NET CASH FLOW FROM
INVESTING ACTIVITIES (159 507) (45 430)
REPAYMENT BY/(LOANS TO)
SHARE INCENTIVE SCHEMES 220 (6 541)
NET CASH FLOW FROM
FINANCING ACTIVITIES 220 (6 541)
MOVEMENT IN CASH AND CASH
EQUIVALENTS 11 303 60 064
TRANSLATION DIFFERENCE
ON CASH AND
CASH EQUIVALENTS 1 487 (4 720)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 26 380 (28 964)
CASH AND CASH
EQUIVALENTS AT END
OF PERIOD 39 170 26 380
CAPITAL COMMITMENTS 231 405 26 431
AUTHORISED BUT
NOT CONTRACTED 185 740 14 092
CONTRACTED 45 665 12 339
LEASE COMMITMENTS 26 655 26 711
MINORITY CONTINGENT
LIABILITIES 10 481 7 887
COMMENTS ON RESULTS
FINANCIAL
Headline earnings per share for the year to December 2000 increased by 40% to
326,2 cents from 232,6 cents earned to December 1999. Improved efficiencies as
well as better trading conditions in all operations except Replacement Parts
contributed to the 36% increase in operating profit.
Included in Electrolytic Manganese Dioxide operating profit is a gain of R19,2
million resulting from the revaluation of foreign currency debtors to year end
spot rates as required by Generally Accepted Accounting Practice Statement
AC112.
Cash retained from operating activities increased by 52% to R170,6 million. As
a result of the excellent cash generation the group remained ungeared at year
end despite spending R80,7 million on capital expenditure and R79,6 million on
purchasing minority shareholders interests in Delta (E.M.D.) (Proprietary)
Limited ("Delta EMD").
OPERATIONS
Delta EMD continued to benefit from increased volumes to the world's major
battery producers and improved efficiencies in operations. The company gained
from the weakness of the South African Rand towards the end of the year once
the currency hedges had been utilised.
Repairs and Services were successful in developing new markets in Africa and
the Middle East. This together with increased volumes locally and improved
operating efficiencies resulted in the division achieving excellent growth in
operating profit for the year.
Replacement Parts experienced a decrease in operating profit against the prior
year due to difficult trading conditions in its major markets particularly the
construction industry.
As announced on 8 March 2000, the group acquired an 8.82% minority shareholding
in Delta EMD effective 28 December 1999. This brings the group's holding in
Delta EMD to 97,48%. The shareholding was acquired for a cash consideration of
R79,6 million. The initial impact on earnings for the group is not material in
the short term but will have a positive influence in the medium to long term.
On 31 May 2000, the group announced an expansion of its EMD plant at
Nelspruit, Mpumalanga, by 11 000 tonnes. This is the first stage in the
expansion of its South African plant to its ultimate capacity of 50 000 tonnes.
The cost of this first stage expansion is expected to be in excess of R200
million and will include an ore reduction facility in the Northern Cape and the
installation of infrastructure and technological improvements to boost
efficiency. The expansion, which is expected to be commissioned towards the end
of 2001, will be financed internally and from existing facilities.
Shortly after the year end Delta EMD purchased land adjacent to its Australian
plant which will ensure that the company is also able to expand this plant to
its ultimate capacity of approximately 50 000 tonnes.
PROSPECTS
The Group is unhedged on its South African export sales but has hedged its
Australian exports for the forthcoming year at a favourable rate relative to
the previous year. This together with the anticipated upturn in the South
African economy should ensure that the group achieves strong earnings growth in
2001.
DIVIDEND NO. 58
Notice is hereby given that a final dividend number 58 of 92,0 cents per share
has been declared by the directors and is payable to holders of ordinary shares
registered in the books of the company at the close of business on 2 March 2001
The dividend is declared in the currency of the Republic of South Africa and
dividend warrants will be posted in South Africa to shareholders on or about 23
March 2001.
PG Joubert (Chairman)
EW van Zyl (Joint Managing)
BR Wright (Joint Managing)
16 February 2001
Registered Office Transfer Secretaries
11th Floor, Office Tower Mercantile Registrars Limited
Sandton City 11 Diagonal Street
Rivonia Road Johannesburg
Sandown 2146 2001
