| Wed 24 Aug 2011, 7:05 | | TPC - Transpaco Limited - Reviewed condensed consolidated results for the |
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TPC
TPC
TPC - Transpaco Limited - Reviewed condensed consolidated results for the
year ended 30 June 2011 and dividend announcement
Transpaco Limited
Reg. No. 1951/000799/06
ISIN: ZAE000007480
Share Code: TPC
REVIEWED CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 JUNE 2011 AND
DIVIDEND ANNOUNCEMENT
A leading manufacturer, recycler and distributor of plastic and paper
packaging products
HEADLINE EARNINGS PER SHARE up 11%
DILUTED HEADLINE EARNINGS PER SHARE up 14%
DIVIDEND PER SHARE UP 14%
INTRODUCTION
The board is pleased to report on the year ended 30 June 2011 ("the year")
in which Transpaco maintained its good growth and again delivered a solid
performance. Improved operating efficiencies and stringent control of group
operating expenses, supported by a reduction in net interest paid,
contributed to the group`s performance. As anticipated, the acquisition of
Disaki Cores and Tubes (Pty) Ltd ("Disaki") with effect from 1 November 2010
impacted positively on the group`s results.
Transpaco`s economic activity (defined as total turnover including inter-
company turnover) reached the R1 billion mark for the year, a milestone for
Transpaco.
Financial Results
Headline earnings per share (HEPS) increased by 11% to 214,0 cents (June
2010: 192,7 cents) and earnings per share (EPS) increased by 12% to 216,5
cents (June 2010: 193,4 cents).
Diluted HEPS increased 14% to 195,7 cents (June 2010:171,0 cents).
In comparing results year-on-year, cognisance must be taken of 3 312 126
additional shares issued during the year under review following Transpaco`s
BEE shareholder converting their preference shares into ordinary shares. The
weighted average number of shares in issue affecting HEPS and EPS was 1 333
925. In the absence of this, Transpaco`s increase in HEPS would have been
16% and in EPS 17% compared to the previous year.
Operating profit rose 14% to R95,2 million (June 2010: R83,5 million) on a
turnover of R954,0 million (June 2010: R786,3 million) notwithstanding that
market conditions in the plastic division led to margin compression
resulting in a decline in operating profits in that division.
The operating profit in the paper division increased as a result of the
Disaki acquisition.
Interest cover improved to 33,3 times (June 2010: 16,0 times).
The group`s level of working capital remains well-managed. Cash generated
from operations amounted to R129,1 million (June 2010: R99,0 million), an
increase of 30%. Consequently Transpaco`s net interest-bearing debt-to-
equity position remains cash positive. Although the Disaki acquisition was
funded out of existing cash resources, the group remains in a highly liquid
position to take advantage of opportunities that may arise in the future.
Net asset value per share increased by 12% to 866 cents (June 2010:772
cents).
Prospects
The group will continue its proven strategy, endeavouring to achieve growth
by maintaining a strict financial policy (including stringent management of
working capital) and by organically expanding existing businesses.
Transpaco will continue to identify and pursue appropriate acquisitions.
Transformation
An independent accredited verification agency has assessed Transpaco as a
Level 5 B-BBEE contributor. Improving this rating is a strategic and
operational imperative for sustainability, and to this end Transpaco
continues to promote comprehensive transformation strategies throughout the
group at all levels. Focus during the year on community development saw the
group make substantial contributions to corporate social responsibility
projects.
Dividend
The board has declared a final cash dividend of 43 cents per share. This has
resulted in a total dividend for the year of 72 cents per share (June 2010:
63 cents), an increase of 14%.
The salient dates for the dividend are as follows:
Last date to trade shares cum dividend Friday, 16 September 2011
Shares trade ex dividend Monday, 19 September 2011
Record date Friday, 23 September 2011
Payment date Monday, 26 September 2011
Share certificates may not be dematerialised or rematerialised between
Monday, 19 September 2011 and Friday, 23 September 2011, both days inclusive
Basis of Preparation and Accounting Policies
The reviewed condensed consolidated annual financial results have been
prepared in accordance with the recognition and measurement criteria of
International Financial Reporting Standards (IFRS), its interpretations
adopted by the International Standards Board (IASB) and the presentation and
disclosure requirements set out in IAS 34 - Interim Financial Reporting and
comply with the Listings Requirements of the JSE Limited and the South
African Companies Act No 71 of 2008. The accounting policies are consistent
in all material respects with those applied in the preparation of the
group`s annual financial statements for the previous year ended 30 June
2010. Transpaco adopted all applicable new and amended standards, the effect
of which had no material impact on the reviewed condensed consolidated
annual financial results.
Review of Independent Auditors
The group`s auditors Ernst & Young Inc. have reviewed the condensed
consolidated financial information for the year. Their review report is
available for inspection at Transpaco`s registered office.
ON BEHALF OF THE BOARD
AJ Aaron PN Abelheim L Weinberg
Non-executive Chairman Chief Executive Financial Director
DIRECTORS
AJ Aaron (Chairman)*; PN Abelheim (Chief Executive); L Weinberg (Financial
Director); HA Botha*; SR Bouzaglou; SI Jacobson*; D Thomas*; SP van der
Linde*
*non-executive
Date 24 August 2011
Auditors Ernst & Young Incorporated
Sponsor Investec Bank Limited
Registered Office 331 6th Street, Wynberg, Sandton
Transfer Secretaries Computershare Investor Services (Pty) Limited,
70 Marshall Street, Johannesburg
Website www.transpaco.co.za
SEGMENTAL ANALYSIS
R`000 Plastic Paper and Properties Total
Products Board and Group
Products Services
Turnover - 2011 626 324 327 665 - 953 989
Turnover to customers 666 422 342 830 - 1 009 252
Less turnover to 40 098 15 165 - 55 263
internal customers
Turnover - 2010 591 148 195 192 - 786 340
Turnover to customers 631 217 209 158 - 840 375
Less turnover to 40 069 13 966 - 54 035
internal customers
Operating profit - 52 449 41 531 1 230 95 210
2011
Operating profit - 57 648 24 027 1 812 83 487
2010
STATEMENT OF COMPREHENSIVE INCOME
Reviewed Audited
12 months % 12 months
R`000 June 2011 change June 2010
Turnover 953 989 21 786 340
Cost of sales 592 081 484 881
Profit before operating 361 908 20 301 459
costs and depreciation
Operating costs 240 126 192 816
Depreciation 26 572 25 156
Operating profit 95 210 14 83 487
Net interest paid 2 860 5 214
Profit before taxation 92 350 18 78 273
Taxation 28 261 23 843
Profit after taxation 64 089 18 54 430
Other comprehensive income - -
Total comprehensive income 64 089 18 54 430
Weighted average number of 29 606 28 144
shares in issue (`000)
Diluted weighted average 32 398 31 882
number of shares in issue
(`000)
Earnings per share (cents) 216,5 12 193,4
Headline earnings per share 214,0 11 192,7
(cents)
Diluted earnings per share 198,0 15 171,6
(cents)
Diluted headline earnings 195,7 14 171,0
per share (cents)
Dividend per share (cents)* 72,0 14 63,0
Reconciliation of headline
earnings (R`000)
Basic earnings 64 089 54 430
Negative goodwill (191) -
Profit on disposal of (551) (202)
property, plant and
equipment
Headline earnings 63 347 17 54 228
*Includes interim dividend of 29 cents (June 2010: 25 cents) and a dividend
declared after the year of 43 cents (June 2010: 38 cents)
CAPITAL COMMITMENTS Reviewed Audited
12 months 12 months
R`000 June 2011 June 2010
Capital expenditure authorised and
contracted
Property, plant and equipment 24 178 4 469
STATEMENT OF FINANCIAL POSITION
Reviewed Audited
12 months 12 months
R`000 June 2011 June 2010
ASSETS
Non-current assets 167 862 150 635
Property, plant and equipment 159 231 146 830
Intangibles 482 482
Goodwill 3 204 3 204
Unlisted investments 33 33
Deferred taxation 4 912 86
Current assets 319 815 281 342
Inventories 89 422 82 848
Trade and other receivables 148 729 117 970
Taxation receivable 1 171 3 804
Cash at bank and in hand 80 493 76 720
TOTAL ASSETS 487 677 431 977
EQUITY AND LIABILITIES
Capital and reserves 274 480 226 993
Issued share capital 317 282
Share premium 11 019 -
Preference shareholders` interest - 9 273
Other reserve 1 204 469
Distributable reserve 261 940 216 969
Non-current liabilities 43 766 55 358
Preference share liability - 2 122
Interest-bearing borrowings 25 894 37 373
Deferred taxation 17 872 15 863
Current liabilities 169 431 149 626
Trade payables and accruals 128 805 114 588
Provisions 16 443 11 838
Current portion of interest-bearing 20 438 22 286
borrowings
Taxation payable 3 745 914
TOTAL EQUITY AND LIABILITIES 487 677 431 977
Number of shares in issue (`000)
(net of treasury shares) 28 192 28 078
Shares issued 3 312 -
Net movement in treasury shares 187 114
Ranking number of shares 31 691 28 192
Salient features
Net asset value per share (cents) 866 772
Operating margin % 10,0% 10,6%
Net interest-bearing debt:equity ratio % Cash Positive Cash Positive
Interest cover (X) 33,3 16,0
STATEMENT OF CASH FLOW
Reviewed Audited
12 months 12 months
R`000 June 2011 June 2010
Cash flow from operating activities
Cash generated from operations 129 070 98 866
Dividends paid (19 906) (15 911)
Net interest paid (2 860) (5 214)
Taxation paid (15 288) (19 049)
Net cash inflow from operating activities 91 016 58 692
Cash flow from investing activities
Proceeds on disposal of property, plant and 1 543 408
equipment
Expansion and replacement of property, (31 979) (27 413)
plant and equipment
Acquisition of business (43 107) -
Decrease in unlisted investments - 4 090
Net cash outflow from investing activities (73 543) (22 915)
Cash flow from financing activities
Net movement in treasury shares 790 80
Decrease in preference share liability (343) (927)
Decrease in long-term borrowings (11 479) (18 665)
Decrease in short-term borrowings (2 668) (5 010)
Net cash (outflow) from financing (13 700) (24 522)
activities
Net movement in cash for the year 3 773 11 255
Cash and cash equivalents at the beginning 76 720 65 465
of the year
Cash and cash equivalents at the end of the 80 493 76 720
year
STATEMENT OF CHANGES IN EQUITY
Preference
Share Share Shareholder`s
R`000 Capital Premium Interest
Balance at 1 July 2009 281 - 9 273
Net profit for the year - - -
Share-based payments - - -
Dividend paid - - -
Net movement in treasury 1 - -
shares
Balance at 30 June 2010 282 - 9 273
Net profit for the year - - -
Share-based payments - - -
Dividend paid - - -
Shares issued 33 11 019 (9 273)
Net movement in treasury 2 - -
shares
Balance at 30 June 2011 317 11 019 -
STATEMENT OF CHANGES IN EQUITY (continued)
Other Distributable
R`000 Reserves Reserve Total
Balance at 1 July 2009 341 178 371 188 266
Net profit for the year - 54 430 54 430
Share-based payments 128 - 128
Dividend paid - (15 911) (15 911)
Net movement in treasury - 79 80
shares
Balance at 30 June 2010 496 216 969 226 993
Net profit for the year - 64 089 64 089
Share-based payments 735 - 735
Dividend paid - (19 906) (19 906)
Shares issued - - 1 779
Net movement in treasury - 788 790
shares
Balance at 30 June 2011 1 204 261 940 274 480
Date: 24/08/2011 07:05:14 Produced by the JSE SENS Department.
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