| Wed 28 Feb 2001, 0:00 | | Tiger Wheels Ltd - Interim Results For The Six Mon |
|
Tiger Wheels Limited
Registration number (1970/011662/06)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
Income statement - R000's
Unaudited
Audited Six months ended
Year ended 31 December
30 June 2000 2000 1999
1 631 261 Revenue 939 639 764 168
111 605 Profit before interest and taxation 37 104 48 516
(17 221) Discontinued operations - (17 221)
(26 959) Net financing costs (14 927) (11 828)
(4 103) Loss from associates (2 292) (1 980)
63 322 Profit before taxation 19 885 17 487
(16 721) Taxation (5 349) (10 902)
46 601 Profit after taxation 14 536 6 585
(12 938) Minority interest (5 799) (5 536)
Earnings attributable to
33 663 ordinary shareholders 8 737 1 049
Reconciliation of headline
earnings per share (cents)
59,6 Attributable earnings per share 15,1 1,9
30,5 Adjusted for discontinued operations - 30,7
- Goodwill amortised 0,2 -
90,1 Headline earnings per share 15,3 32,6
Ordinary shares (000's)
56 753 - Issued 58 588 56 753
56 500 - Weighted 57 742 56 085
Cash flow statement - R000's
Cash flows from
184 684 Operating activities (44 505) 23 399
(164 850) Investing activities (74 897) (59 161)
57 712 Financing activities (2 251) 62 823
77 546 Movement in cash resources (121 653) 27 061
Cash resources at beginning
(18 175) of period 59 371 (18 175)
59 371 Cash resources at end of period (62 282) 8 886
Supplementary information - R000's
65 517 Depreciation 40 955 31 617
141 724 Capital expenditure 63 911 59 161
92 040 Capital commitments approved 40 649 63 822
727 Net asset value per share (cents) 764 650
Balance sheet - R000's
Audited Unaudited
at at 31 December
30 June 2000 2000 1999
Assets
542 667 Non-current assets 573 430 501 487
494 448 Property, plant & equipment 527 792 450 769
6 703 Investment in associates 4 411 8 826
41 516 Other financial assets 41 227 41 892
664 363 Current assets 748 266 559 505
81 759 Bank and cash 33 519 35 864
582 604 Other current assets 714 747 523 641
1 207 030 Total assets 1 321 696 1 060 992
Equity and liabilities
469 535 Shareholders' equity 503 971 421 440
412 455 Shareholders' funds 447 442 368 645
57 080 Minority interest 56 529 52 795
186 928 Non-current liabilities 178 514 210 004
181 858 Interest bearing debt 172 684 194 520
5 070 Deferred taxation 5 830 15 484
550 567 Current liabilities 639 211 429 548
489 082 Non-interest bearing debt 508 665 371 024
61 485 Interest bearing debt 130 546 58 524
1 207 030 Total equity and liabilities 1 321 696 1 060 992
Statement of changes in equity - R000's
368 869 Equity at beginning of period 412 455 368 869
Changes in
5 340 Share capital, premium & reserves 9 794 (5 881)
15 226 Non-distributable reserves 14 713 3 753
23 020 Accumulated profit 10 480 1 904
Earnings attributable to ordinary
33 663 shareholders 8 737 1 049
(14 746) Capitalisation award and dividend (549) (1 125)
Loss from associates transferred
4 103 to non-distributable reserves 2 292 1 980
412 455 Equity at end of period 447 442 368 645
COMMENTS
Nature of Business
Tiger Wheels Limited, "Tiwheel", is a group of companies focused on the
automotive aluminium wheel and passenger car tyre industries. The group
operates internationally, with wheel manufacturing plants in Germany, Poland
and South Africa, wholesale wheel distribution throughout Europe, North America
and South Africa, and tyre distribution in the United Kingdom and South Africa.
The group's 31 Tiger Wheel & Tyre retail stores in Southern Africa (25 owned
and six franchised) cover all major centres and hold a significant share of the
replacement passenger tyre and wheel business in the region.
Results
Revenue increased by 23% due mainly to the increased output of the wheel
manufacturing plants in Poland and Babelegi, South Africa. The group earnings
of R8,7 million are unacceptably low. As foreshadowed in the Chairmens' review
of 10 October 2000, the losses at the Babelegi plant continued throughout most
of the period under review, which negated much of the income earned elsewhere.
The South African Tiger Wheel & Tyre group performed well below budget, further
minimizing the possibility of reasonable results.
The 74% owned ATS wheel manufacturing group in Germany and Poland increased
sales in line with budget. The extensive casting machinery replacement
programme in Werdohl, Germany, is proceeding in line with budget and with
minimal disruptions. The Polish plant with its new paint facility is operating
effectively. Increased revenue is expected in the second half as European
seasonal demand takes effect particularly in the wheel aftermarket operations.
The return on revenue should also improve.
An unacceptably high reject rate was the main cause of the losses in the
Babelegi wheel manufacturing plant in South Africa particularly in the first
four months of the financial year. The first small profit was achieved in
November, with losses in December and January due to the normal shut down
period. There has since been a significant reduction in the reject rate, which
is still not optimal. A small profit is budgeted for the current six-month
period.
The wholesale wheel distribution businesses traded poorly. However, for
seasonal and product supply considerations, improved results are anticipated
for the second half-year. The results of wholesale tyre distribution in South
Africa were also not impressive.
In line with trends in South Africa, the Tiger Wheel & Tyre retail group was
below budget on sales and even more so on income. A slightly better relative
performance is anticipated for the current period.
At 31 December 2000 there were excess group assets comprising work-in-progress
and retail properties under development. The gearing ratios should again reduce
by year-end.
Prospects
The board has approved the development of an aluminium wheel manufacturing
plant in North America to be operational by July 2003. Initial capacity will be
only 600 000 wheels per annum with phased expansion thereafter. The group is
budgeting to fund this project from internal cash resources together with
acceptable levels of debt within self-imposed gearing constraints.
As outlined above, all group operations are looking to an improved second half
of the financial year, either for seasonal or business reasons. Considering
that Babelegi should no longer be a drag on profits of the other group
businesses, in the absence of unforeseen circumstances, headline earnings per
share should at least exceed those of the previous financial year.
Capitalisation share award and cash dividend
Dividends are only considered at year-end.
By order of the Board
Mark Gardner, Secretary
28 February 2001
Directors: Eddie Keizan (Joint Chairman and Chief Executive),
Martin Glatt (Joint Chairman), Eugene Couzyn, Jacques Desmidt,
Mark Gardner, Rainer Hagemann, Keith Rivers, Dror Sery*, Annette
Stahlschmidt**, Siegfried Teichert**. *Israeli, **German
Available on our website: www.tsw.co.za
