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DLV
DLV
DLV - Dorbyl Limited - Provisional group results for the year ended 31 March
2011
DORBYL LIMITED
(Incorporated in the Republic of South Africa)
(Company registration number 1911/001510/06)
Share code: DLV ISIN Code: ZAE000002184
("Dorbyl", "the Company" or "the Group")
PROVISIONAL GROUP RESULTS FOR THE YEAR ENDED 31 MARCH 2011
STATEMENT OF COMPREHENSIVE INCOME
Audited Audited Audited
Year to Year to Year to
March 2011 March 2010 March 2009
Represented Represented
R`000 R`000 R`000
Continuing operations:
Revenue 126 959 104 400 122 896
Cost of sales (126 209) (108 154) (160 841)
Gross profit/(loss) 750 (3 754) (37 945)
Other operating income 6 408 2 972 10 073
Administrative expenses (23 880) (19 061) (41 172)
Sales and distribution (3 559) (2 496) (5 009)
expenses
Other operating expenses
Environmental costs (5 199) - -
Reversal/(impairment) - 10 329 (60 193)
of property, plant
and equipment
Employee benefit (2 381) 2 942 (7 909)
Liabilities
(raised)/reversed
Operating loss (27 861) (9 068) (142 155)
Net finance income 5 604 4 596 2 873
Finance income 5 947 5 001 6 648
Finance costs (343) (405) (3 775)
Share of loss of equity - (21 943) (5 741)
accounted investee
Loss before taxation (22 257) (26 415) (145 023)
Income tax expense (4 919) - (67)
Loss after taxation from (27 176) (26 415) (145 090)
continuing operations
Discontinued operations:
Loss from discontinued (2 530) (87 387) (114 755)
operations, net of
taxation
Loss for the year (29 706) (113 802) (259 845)
Other comprehensive
income/(expense)
Revaluation/(devaluation)
of property, plant
and equipment 21 771 (5 000) 102 017
Other comprehensive 21 771 (5 000) 102 017
income/(expense) for the
year, net of income tax
Total comprehensive loss (7 935) (118 802) (157 828)
for the year
Loss attributable to:
Equity holders of (29 224) (94 848) (237 932)
the parent
Minority interest (482) (18 954) (21 913)
Loss for the year (29 706) (113 802) (259 845)
Total comprehensive loss
attributable to:
Equity holders of (7 453) (99 848) (135 915)
the parent
Minority interest (482) (18 954) (21 913)
Total comprehensive loss (7 935) (118 802) (157 828)
for the year
Cents Cents Cents
Loss per share (cents)
Basic and diluted loss (86,1) (279,6) (701,4)
per share
Continuing operations (78,7) (77,9) (427,7)
Discontinued operations (7,4) (201,7) (273,7)
R`000 R`000 R`000
Headline loss
reconciliation
Loss for the year (29 224) (94 848) (237 932)
Adjusted for : 1 010 19 978 130 450
(Profit)/loss on disposal (1 520) (237) 56
of plant, vehicles and
equipment
Loss on sale of - 7 500 -
discontinued operations
(Reversal)/impairment of (750) 9 942 129 139
assets
Less: Minority interest - (862) (10 185)
Impairment/(reversal) of 3 280 (4 865) 11 440
investment in equity
accounted investee
Share of impairment of - 8 500 -
assets of equity
accounted investee
Headline loss (28 214) (74 870) (107 482)
Headline and diluted loss (83,2) (220,7) (316,8)
per share (cents)
Continuing operations (83,2) (108,3) (285,9)
Discontinued operations - (112,4) (30,9)
Dividends paid per
ordinary share (cents)
Special - 22 November 150,0 - -
2010
R`000 R`000 R`000
Depreciation and (615) (2 866) (19 383)
amortisation
Continuing operations (615) (431) (2 774)
Discontinued operations - (2 435) (16 609)
Finance income 5 947 11 780 11 952
Interest received 5 947 4 032 7 274
Foreign exchange gains - 7 748 4 678
Continuing operations 5 947 5 001 6 648
Discontinued operations - 6 779 5 304
Finance cost (343) (16 960) (12 618)
Interest paid (117) (717) (1 363)
Foreign exchange losses (14) (16 031) (11 043)
Interest paid - other (212) (212) (212)
Continuing operations (343) (405) (3 775)
Discontinued operations - (16 555) (8 843)
STATEMENT OF FINANCIAL POSITION
Audited Audited
March March
2011 2010
R`000 R`000
ASSETS
Non-current assets 44 221 103
Property, plant and equipment 44 221 103
Current assets 136 831 346 195
Inventories 25 330 -
Taxation receivable 47 -
Trade and other receivables 28 886 25 598
Employee benefits 1 503 2 821
Cash and cash equivalents 81 065 64 685
Assets classified as held for sale - 253 091
Total assets 181 052 346 298
EQUITY AND LIABILITIES
Total equity 107 565 166 590
Equity attributable to equity 106 941 165 280
holders of the parent
Minority interest 624 1 310
Non-current liabilities 28 954 27 891
Preference share capital 3 980 3 980
Employee benefits 24 974 23 911
Current liabilities 44 533 151 817
Bank overdraft - 22 602
Trade and other payables 44 227 23 829
Provisions 300 300
Taxation payable 6 -
Liabilities classified as held for - 105 086
sale
Total equity and liabilities 181 052 346 298
Assets classified as held for sale
Property, plant and equipment - 101 161
Investment in equity accounted - 10 118
investee
Inventories - 62 490
Trade and other receivables - 75 120
Tax receivable - 165
Cash and cash equivalents - 4 037
- 253 091
Liabilities classified as held for
sale
Deferred tax liabilities - 156
Minority shareholders for dividends - 2 161
Trade and other payables, including - 102 692
derivatives
Taxation payable - 77
105 086
Capital commitments authorised - -
Authorised and contracted for - -
Authorised but not contracted for - -
Operating lease commitments 3 373 10 340
Operating lease receivables 2 049 191 955
Investment in equity accounted
investee
- prior year classified as held for - 10 118
sale
Net asset value per share (cents) 315 487
Acquisition of property, plant and
equipment
Expansion - 3 990
Replacement 6 134 2 352
Finished goods stated at net 3 752 -
realisable value
Ordinary shares (000)
Issued - net of treasury shares 33 924 33 924
Weighted average number of shares 33 924 33 924
- net of treasury shares
STATEMENT OF CHANGES IN EQUITY
Equity
holders
Stated Retained of the Minority Total
capital Reserves earnings parent interest equity
R`000 R`000 R`000 R`000 R`000 R`000
Balance 1 11 248 106 017 147 863 265 128 20 264 285 392
April 2009
Total
comprehensive
loss for the
year
Loss for the - - (94 848) (94 848) (18 954) (113 802)
year
Total other - (31 551) 26 551 (5 000) - (5 000)
comprehensive
income
Devaluation - (5 000) - (5 000) - (5 000)
of property,
plant and
equipment
Transfer of - (26 326) 26 326 - - -
revaluation
reserve on
sale of
property
Depreciation - (225) 225 - - -
on
revaluation
of property
Balance 31 11 248 74 466 79 566 165 280 1 310 166 590
March 2010
Total
comprehensive
loss for the
year
Loss for the - - (29 224) (29 224) (482) (29 706)
year
Total other - (48 695) 70 466 21 771 - 21 771
comprehensive
income
Revaluation - 21 771 - 21 771 - 21 771
of property,
plant and
equipment
Transfer of - (70 466) 70 466 - - -
revaluation
reserve on
sale of
property
Transactions - - (50 886) (50 886) (204) (51 090)
with owners,
recorded
directly in
equity
Dividends to - - (50 886) (50 886) - (50 886)
shareholders
Disposal of - - - - (204) (204)
minority
interest
Balance 31 11 248 25 771 69 922 106 941 624 107 565
March 2011
STATEMENT OF CASH FLOWS
Audited Audited
Year to Year to
March March
2011 2010
R`000 R`000
Cash utilised by operations (36 260) (81 357)
Loss for the year (29 706) (113 802)
Adjustments for:
Depreciation 615 2 866
(Reversal)/impairment losses on property, (750) 9 942
plant and equipment
Impairment/(reversal) losses on investment 3 280 (4 865)
in associate
Net interest income (5 618) (3 103)
Share of loss of equity accounted investee - 21 943
Gain on sale of property, plant and (1 520) (237)
equipment
Loss on the sale of discontinued operations - 7 500
Income tax expense/(relief) 4 919 (322)
(28 780) (80 078)
Change in inventories (11 767) 51 879
Change in trade and other receivables 6 643 3 982
Change in trade and other payables 510 (53 568)
Change in provisions and employee benefits 2 381 (3 412)
Cash utilised by operating activities (31 013) (81 197)
Interest expense (329) (929)
Income taxes (paid)/received (4 918) 769
Cash flows from investing activities 122 091 68 850
Interest income 5 947 4 032
Proceeds on disposal of property, plant and 77 608 62 922
equipment
Acquisition of property, plant and equipment (6 134) (6 342)
Disposal of discontinued operations, net of 43 479 10 000
cash disposed of
Changes in advances made to associate 1 191 (1 762)
Cash flows from financing activities (50 886) -
Dividends paid (50 886) -
Net change in cash and cash equivalents 34 945 (12 507)
Cash and cash equivalents at beginning of 42 083 51 431
year
Classified as held for sale at beginning of 4 037 7 196
year
Classified as held for sale - (4 037)
Cash and cash equivalents at end of year 81 065 42 083
REVIEW OF OPERATIONS
Net cash position
The net cash position at R81,1 million, is R35 million higher than the position
at 31 March 2010 of R46,1 million mainly due to the receipt of the proceeds on
the disposal of Guestro Forging and Machining, Dorbyl Automotive Systems and the
proceeds on the disposal of the Uitenhage, Struandale and Rosslyn properties,
less the special dividend paid in November 2010.
At 31 March 2011, the only outstanding sale agreement proceeds related to the
disposal of the 50% interest in Dorbyl Magnetto Wheels to the joint venture
partner, Magnetto Wheels S.p.A., for a consideration of R5,6m. The proceeds were
received subsequent to 31 March 2011.
Change in accounting treatment
Guestro Castings and the Benoni property are no longer accounted for as being
held for sale. In respect of the Benoni property the carrying value has been
increased to reflect the fair market value, net of certain rehabilitation costs
still to be incurred. This results in a direct increase in reserves, thereby not
having an effect on the basic or or headline earnings.
Net asset value as at 31 March 2011
The net asset value per share as at 31 March 2011 of 315 cents per share is
comparable to the 487 cents per share as at 31 March 2010. The decrease in the
net asset value per share included a special dividend paid of 150 cents per
share.
The net asset value at 31 March 2011 can be summarised as follows:
Benoni property R36,8 million or 108 cents per share
Casting business R26,0 million or 77 cents per share
Cash R81,1 million or 239 cents per share
Less:
Net employee fund liabilities R23,5 million or -69 cents per share
Other net corporate liabilities R13,5 million or -40 cents per share
Total net asset value R106,9 million
The net asset value does not include the possible impact of Secondary Tax on
Companies (STC). Due to the assessed tax losses and capital losses within the
relevant corporate entities, the Group is not expected to pay Income Tax or
Capital Gains Tax in the foreseeable future.
Results
As stated in the Group`s Interim Results, the results in respect of the prior
periods, related to the Group`s businesses which operated mainly in the
automotive industry. Pursuant to the several business disposals now concluded,
the remaining operating business is Guestro Castings, which operates in the
automotive aftermarket and general engineering sectors.
The total comprehensive loss for the year was R7,5 million or 22 cents per
share, which was mainly attributable to the remaining operations being, Guestro
Castings, the Benoni Property and the Corporate Head Office.
As Guestro Castings and the Benoni property are no longer accounted for as being
held for sale, the prior two years statement of comprehensive income has been
represented for comparative purposes.
Prospects
Management`s initiatives to improve operational efficiencies at Guestro
Castings have started to bear fruit in the last year and Guestro Castings can
now increasingly compete in a challenging imported product environment. These
initiatives are continuing. The main focus of management has now moved to
broadening and diversifying the customer base and has achieved encouraging
results from this drive in recent months. Although operating conditions are
expected to remain challenging, management believes that Guestro Castings is
well positioned to gain from this slow recovery in general market conditions
with its improved efficiencies and expanded wider broadened market scope.
With all the other business and property disposals now concluded, further
measures to further reduce corporate head office costs can now be implemented.
Segmental reporting
The primary segment during the period was automotive component manufacturing and
general engineering. In terms of the geographical segment, automotive component
manufacturing and general engineering is considered to be a South African
operation. As the entire business is considered to be one segment, no segmental
reporting has been provided.
Subsequent events
There have been no matters which are material to the financial affairs of the
Company or the Group that have occurred between the balance sheet date and the
date of the approval of these provisional results.
Basis of preparation
The Provisional results for the year ended 31 March 2011 have been prepared
in accordance with the recognition and measurement criteria of International
Financial Reporting Standards (IFRS), the presentation and disclosure
requirements of IAS 34 - Interim Financial Reporting and the AC500 series as
issued by the Accounting Practices Board, the Companies Act of South Africa,
1973 and the Listings Requirements of the JSE Limited. They do not include all
of the information required for the full annual financial statements, and should
be read in conjunction with the consolidated financial statements for the Group
as at and for the year ended 31 March 2011.The accounting policies applied are
consistent with those applied in the prior comparative year and in the financial
statements for the year ended 31 March 2011.
The unmodified audit reports of KPMG Inc. included in the financial statements
and on the summarised financial statements contained in this Provisional Report
are available for inspection at the Company`s registered office.
Directorate
Mr T van Wyk retired from the Board effective 31 January 2011. As indicated in
the SENS announcement released on 11 May 2011, Mr BP Wood resigns from the Board
effective 30 June 2011.
Dividend
In view of the adverse results for the year under review, no ordinary dividend
has been declared.
On behalf of the board
J B Magwaza (Chairman)
R F Rohrs (Chief Executive Officer)
28 June 2011
Transfer secretaries:
Computershare Investor Services (Pty) Limited
70 Marshall Street, Johannesburg 2001
(P O Box 61051, Marshalltown, 2107).
Company secretary and registered office: BD Bhikha,
13 Lincoln Road, Industrial Sites, Benoni South, 1501. (PO Box 5500, Benoni
South, 1502).
Sponsor:
PSG Capital (Proprietary) Limited, DM Kisch House, Inanda Greens Business Park,
54 Wierda Road West, Sandton, 2196.
(PO Box 987, Parklands, 2121).
Directors:
JB Magwaza (Chairman)**, RF Rohrs (Chief Executive Officer)*, PM Bester**, JW
Dreyer***, TA Morkel**, BP Wood*
* Executive directors ** Independent non-executive directors *** Non-executive
directors
Date: 28/06/2011 16:00:05 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,
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howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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