| Tue 6 Mar 2001, 0:00 | | Bateman Project Holdings Ltd - Results For 6 Month |
|
BATEMAN PROJECT HOLDINGS LIMITED
Registration number 82/03648/06
REVIEWED RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
HEADLINE EARNINGS BEFORE ABNORMAL PROFITS UP 27%
ORDINARY DIVIDEND UP BY 28%
GROUP INCOME STATEMENT
Reviewed Reviewed Audited
Six Months Six Months Year
Ended Ended Ended
31/12/2000 31/12/1999 30/6/2000
R000 R000 R000
Sales revenue * 890 500 517 087 1 569 450
Net operating costs * 878 890 510 216 1 567 511
Profit before abnormal
Items 11 610 6 871 1 939
Abnormal items - 497 497
Profit from operations 11 610 7 368 2 436
Net treasury income
not related to projects 6 893 7 994 15 386
Income from associates 1 200 1 750 913
Profit before tax 19 703 17 112 18 735
Income tax expense (2 697) (2 900) (3 643)
Profit after tax 17 006 14 212 15 092
Minority interests (3 707) (3 207) (4 606)
Net profit for the
period 13 299 11 005 10 486
Number of shares on
which earnings per
share are based (000's) 39 510 38 867 39 061
Earnings per share
(cents) 33.7 28.3 26.9
Headline earnings per
ordinary share (cents) 33.7 27.0 25.6
Dividends per ordinary
share (cents) - Interim 11.5 9.0 9.0
- Final - - 11.0
Reconciliation of
headline earnings
Net profit 13 299 11 005 10 486
Surplus on disposal
of associate - 497 497
Headline earnings 13 299 10 508 9 989
Notes :
1. Accounting policies
The principle accounting policies are consistent with those that were used
during the previous financial year.
2. Profit before abnormal items is arrived at after taking into account :
Depreciation and amortisation
(10 688) (5 352) (22 503)
Surplus on sale of equipment
and vehicles 224 80 208
3. Interest paid included
in net treasury income 660 472 4 595
* Included in the sales revenue and net operating costs are notional sales and
costs respectively.
Notional sales represents the value of contract work handled for clients where
disbursements for the related equipment supply and construction labour are made
by the client.
GROUP BALANCE SHEET
Reviewed Reviewed Audited
Six Months Six Months Year
Ended Ended Ended
31/12/2000 31/12/1999 30/6/2000
R000 R000 R000
ASSETS
Non current assets 103 570 95 598 98 010
Property, equipment and vehicles 75 372 67 953 71 093
Intangible assets 5 291 3 825 3 390
Investments in associates 2 433 2 070 1 233
Other investments 1 187 1 078 1 187
Long term debtors 9 068 13 963 10 888
Deferred tax asset 10 219 6 709 10 219
Current assets 809 186 635 198 794 610
Cash and investments 392 002 277 724 407 971
Other 417 184 357 474 386 639
Total assets 912 756 730 796 892 620
EQUITY AND LIABILITIES
Capital and reserves 122 574 122 197 113 819
Issued capital 23 693 23 693 23 693
Reserves 18 18 18
Accumulated profits 98 863 98 486 90 108
Minority interests 14 380 13 432 10 668
Non current liabilities 2 184 541 1 777
Interest bearing borrowings 58 373 214
Non interest bearing borrowings 1 516 - 1 356
Deferred tax liability 610 168 207
Current liabilities 773 618 594 626 766 356
Interest bearing - bank 40 388 31 816 23 371
Interest bearing - other 1 683 466 1 921
Other 731 547 562 344 741 064
Total equity and liabilities 912 756 730 796 892 620
Capital employed 139 138 136 170 126 264
Net current assets 35 568 40 572 28 254
Ordinary shares in issue (000's) 39 510 39 510 39 510
Net asset value per share(cents) 310.2 309.3 288.1
SEGMENT INFORMATION
South International Consolidation Consolidated
Africa Adjustments
R000 R000 R000 R000
Total Revenue 466 313 428 850 (4 663) 890 500
GROUP CASH FLOW STATEMENT
Reviewed Reviewed Audited
Six Months Six Months Year
Ended Ended Ended
31/12/2000 31/12/1999 30/6/2000
R000 R000 R000
Cash flows from operations 22 074 12 279 24 060
Disposal of interest in
Investments - 497 497
Working capital changes (37 539) (110 315) 40 468
Net treasury income 6 893 7 994 15 386
Equipment and vehicle
Replacements (14 363) (17 812) (37 418)
Income tax paid (2 197) (7 679) (12 121)
(25 132) (115 036) 30 872
Dividends paid * (4 346) (51 093) (59 037)
Cash outflow from operating
Activities (29 478) (166 129) (28 165)
Net increase in investment
Activities (5 337) (1 078) (4 577)
(34 815) (167 207) (32 742)
Net cash inflow/(outflow)
from financing activities 1 829 (186) 4 041
Decrease in cash and cash
equivalents (32 986) (167 393) (28 701)
Cash and cash equivalents
at the beginning of the period 384 600 413 301 413 301
Net cash and cash equivalents
at the end of the period 351 614 245 908 384 600
* Prior periods include a special dividend of R39 212 000
STATEMENT OF CHANGES IN EQUITY
Issued Reserves Accumu- Total
capital lated
profits
R000 R000 R000 R000
Balance at beginning of period 23 693 18 90 108 113 819
Earnings attributable to
shareholders 13 299 13 299
Dividends (4 544) (4 544)
Balance at end of period 23 693 18 98 863 122 574
COMMENTS :
Results
The group produced encouraging results for the six-month period. The income
attributable to ordinary shareholders before abnormal profits increased by 27%
to R13,3 million (1999 : R10,5 million) which is equivalent to headline
earnings of 33,7 cents per share on a fully diluted basis (1999 : 27,0 cents
per share).
Highlights
The group's order book is strong as a result of new projects secured during the
period. Oil & Gas and Energy activities in the Commonwealth of Independent
States continue to be exciting. Strong performances were also achieved by the
group's activities in R.S.A. The group's good performance was achieved despite
a sluggish minerals market in Australia.
Prospects
The group's American operations have been restructured and negotiations have
been finalised to merge our Oil & Gas activities with those of Merrick &
Company, a similar sized Denver based corporation. This should enhance the
prospects in that region. In general, future prospects look promising and
barring any unforeseen developments in global markets, the group is well
positioned to return to normal historic levels of profitability.
On behalf of the board
AG Fletcher (Chairman) Dr JP Herselman (Chief Executive)
Declaration of dividend
Notice is hereby given that Ordinary Dividend No. 19 of 11,5 cents per share
has been declared payable on Friday 6 April 2001 to shareholders registered in
the books of the company at the close of business on Friday 23 March 2001. On
the due date, dividends will, where applicable, be electronically transferred
to shareholders' bank accounts. In the absence of suitable mandates, dividend
cheques will be posted to shareholders.
By order of the board
Elbex (Pty) Limited Sponsor Share Transfer Secretaries
Secretaries Investec Bank Ltd Mercantile Registrars Limited
Per : HAC Poole 100 Grayston Drive 8th Floor, First National House
5 March 2001 Sandown 11 Diagonal Street
Sandton 2196 Johannesburg 2001
PRESS RELEASE
Bateman increases profits as new orders boost future prospects
Johannesburg 6 March 2001
Bateman Project Holdings (Batepro) today reported a healthy increase in
half-year earnings as delayed orders which affected financial performance last
year turned into contracts ensuring a strong order book for several years.
Batepro is a solutions provider to the natural resource industry worldwide.
Much of its process orientated engineering contracts are outside of South
Africa and most of its earnings are now in hard currencies.
Headline earnings for the six months to December 2000 are already ahead of the
figure for the previous full year, and the group says prospects for this year
are promising.
Headline earnings before abnormal profits were R13,3 million, 27% up on the
R10,5 million in the same period the previous year. At the operating level
profits are up by 5,8 % compared to the same period in the previous year.
An interim dividend of 11,5 cents has been declared, a 28 % increase on the 9,0
cents declared for the comparative period last year.
"We have secured some very big projects recently and this work will contribute
significantly over the next few years," said CEO John Herselman.
"There are other major projects in the offing and the prospects are
encouraging, particularly for dollar-denominated earnings from abroad.
"Our order book is robust and our cash position is strong - our balance sheet
reflects nearly R350 million in cash and investments."
Recent orders include the $150 million Shurtan gas compression project in
Uzbekistan. Another project in the Commonwealth of Independent States - an area
in which Bateman specialises - is expected to be finalised in the second half
of this calendar year.
The group has already done nearly R3 billion worth of work in the former Soviet
Union, in the extraction of gas, oil, diamonds, and precious and base metals.
It is currently negotiating significant work for Alrosa, the Russian
Federation's largest diamond exploration, mining and marketing company
Last week Bateman Titaco was awarded a lump-sum turnkey project by SA Chrome
and Alloys for its new smelter, pelletising and sintering plant near
Rustenburg. Bateman's share of the capital expenditure on the plant will be in
the region of R475 million.
Work has started on the $450 million Skorpion zinc mine in Namibia, where
Bateman is in a joint venture with SNC-Lavelin of Canada.
Bateman has also been commissioned to do a study for the Corridor Sands heavy
minerals plant in Mozambique.
"The business we already have will contribute to earnings over the next two or
three years. Barring unforeseen circumstances, we are confident about our
prospects," Herselman said.
Herselman also announced the formation of a joint venture company in the United
States which will focus on the oil and gas market there.
For further information, please contact:
John Herselman, CE, Bateman, tel (011) 899 2544, cell 082-490-1268.
Roger Falls, Deputy CE, Bateman, tel (011) 899 3305, cell 082 441 1706
Stan Yach, Financial Director, Bateman, tel (011) 899 3305, cell 082-492-4922
Michael Acott, Baird's tel (011) 886 2440, cell 082 821 5656
