|
DLV
DLV
DLV - Dorbyl Limited - Interim group results for the six months ended 30
September 2011
Dorbyl Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1911/001510/06)
Share Code: DLV ISIN Code:ZAE000002184
("the Company" or "the Group")
INTERIM GROUP RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2011
Income Statement
Unaudited
Unaudited 6 months to Audited
6 months to September Year to
September 2010 March
2011 Represented 2011
R`000 R`000 R`000
Continuing operations:
Revenue 71 751 72 719 126 959
Cost of sales (82 647) (66 722) (126 209)
Gross (loss)/profit (10 896) 5 997 750
Other operating income 888 4 357 6 408
Administrative expenses (10 247) (9 723) (23 880)
Sales and distribution expenses (1 848) (1 382) (3 559)
Other operating expenses
Environmental costs (4 173) - (5 199)
Pattern testing costs (7 354) - -
Employee benefit liabilities - - (2 381)
Operating loss (33 630) (751) (27 861)
Net finance income 1 604 2 806 5 604
Finance income 1 711 2 912 5 947
Finance costs (107) (106) (343)
(Loss)/profit before taxation (32 026) 2 055 (22 257)
Income tax expense (13) - (4 919)
(Loss)/profit after taxation (27 176)
from continuing operations (32 039) 2 055
Discontinued operations:
Loss from discontinued (2 530)
operations, net of taxation - (2 530)
Loss for the period (32 039) (475) (29 706)
Other comprehensive expense
Revaluation of property, plant - 21 771
and equipment 4 173
Other comprehensive income for - 21 771
the period, net of income tax 4 173
Total comprehensive loss for the (475) (7 935)
period (27 866)
Loss attributable to:
Equity holders of the parent (32 039) (475) (29 224)
Minority interest - - (482)
Loss for the period (32 039) (475) (29 706)
Total comprehensive loss
attributable to:
Equity holders of the parent (27 866) (475) (7 453)
Minority interest - - (482)
Total comprehensive loss for the (27 866) (475) (7 935)
period
Loss per share (cents)
Basic and diluted loss per share (94.4) (1.4) (86.1)
Continuing operations (94.4) 6.1 (78.7)
Discontinued operations - (7.5) (7.4)
Headline loss reconciliation:
Loss for the period (32 039) (475) (29 224)
Adjusted for: - 1 242 1 010
Profit on disposal of plant, - (1 288) (1 520)
vehicles and equipment
Reversal of impairment of assets - (750) (750)
Impairment of investment in - 3 280 3 280
equity accounted investees
Headline (loss)/earnings (32 039) 767 (28 214)
Headline and diluted (94.4) 2.3 (83.2)
(loss)/earnings per share (cents)
Continuing operations (94.4) 2.3 (83.2)
Discontinued operations - - -
Dividends paid per ordinary share
(cents)
Special - 22 November 2010 - - 150.0
R`000 R`000 R`000
Depreciation and amortization (448) (52) (615)
Finance income 1 711 2 912 5 947
Interest received 1 558 2 912 5 947
Foreign exchange gains 153 - -
Finance cost (107) (106) (343)
Interest paid (1) - (117)
Foreign exchange losses - - (14)
Interest paid - other (106) (106) (212)
Balance Sheet
Unaudited
Unaudited 6 months to Audited
6 months to September Year to
September 2010 March
2011 Represented 2011
R`000 R`000 R`000
ASSETS
Non-current assets 49 186 - 44 221
Property, plant and equipment 49 186 - 44 221
Current assets 104 091 231 472 136 831
Inventories 24 573 - 25 330
Taxation receivable 47 - 47
Trade and other receivables 34 204 2 929 28 886
Employee benefits 1 503 2 821 1 503
Cash and cash equivalents 43 764 154 680 81 065
Assets classified as held for sale - 71 042 -
Total assets 153 277 231 472 181 052
EQUITY AND LIABILITIES
Total equity 79 699 166 115 107 565
Equity attributable to equity 79 075 164 805 106 941
holders of the parent
Minority interest 624 1 310 624
Non-current liabilities 28 954 27 893 28 954
Preference share capital 3 980 3 980 3 980
Employee benefits 24 974 23 913 24 974
Current liabilities 44 624 37 464 44 533
Trade and other payables 44 616 14 698 44 227
Provisions - 300 300
Taxation payable 8 - 6
Liabilities classified as held for 22 466 -
sale -
Total equity and liabilities 153 277 231 472 181 052
Assets classified as held for sale
Property, plant and equipment - 19 861 -
Investment in equity accounted 5 718 -
investee -
Inventories - 14 460 -
Trade and other receivables - 28 659 -
Tax receivable - 165 -
Cash and cash equivalents - 2 179 -
- 71 042 -
Liabilities classified as held for
sale
Trade and other payables including 22 461 -
derivatives -
Taxation payable - 5 -
- 22 466 -
Capital commitments authorised - - -
Authorised and contracted for - - -
Authorised but not contracted for - - -
Operating lease commitments 1 349 5 593 3 373
Operating lease receivables 842 3 228 2 049
Investments in equity accounted 5 718 -
investee - prior year classified -
as held for sale
Net asset value per share (cents) 233 486 315
Acquisition of property, plant and
equipment
Expansion 1 240 3 194 6 134
Replacement 4 101 - 3 752
Ordinary shares (000)
Issued - net of treasury shares 33 924 33 924 33 924
Weighted average number of shares 33 924 33 924
- net of treasury shares 33 924
Cash Flow Statement
Unaudited
Unaudited 6 months to Audited
6 months to September Year to
September 2010 March
2011 Represented 2011
R`000 R`000 R`000
Cash utilised by operations (43 266) (11 328) (36 260)
Loss for the period (32 039) (475) (29 706)
Adjusted for:
Depreciation 448 52 615
Reversal of impairment on (750) (750)
property, plant and equipment
Impairment losses on investment 3 280 3 280
in associate -
Net interest income (1 451) (2 806) (5 618)
Gain on sale of property, plant (1 288) (1 520)
and equipment -
Income tax expense 13 - 4 919
(33 029) (1 987) (28 780)
Change in inventories 757 (897) (11 767)
Change in trade and other (1 706) 6 643
receivables (10 965)
Change in trade and other (6 632) 510
payables 389
Change in provisions and employee - 2 381
benefits (300)
Cash utilised by operating (11 222) (31 013)
activities (43 148)
Interest expense (107) (106) (329)
Income taxes paid (11) - (4 918)
Cash flows from investing 122 067 122 091
activities 5 965
Interest income 1 558 2 912 5 947
Proceeds on disposal of property, 77 588 77 608
plant and equipment -
Acquisition of property, plant (3 194) (6 134)
and equipment (1 240)
Disposal of discontinued 43 641 43 479
operations, net of cash disposed 5 647
of
Changes in advances made to 1 120 1 191
associate -
Cash flows from financing - (50 886)
activities -
Dividends paid - - (50 886)
Net change in cash and cash 110 739 34 945
equivalents (37 301)
Cash and cash equivalents at 42 083 42 083
beginning of period 81 065
Classified as held for sale at 4 037 4 037
beginning of period -
Classified as held for sale - (2 179) -
Cash and cash equivalents at end 43 764 154 680 81 065
of period
Statement of changes in equity
Stated Reserves Equity Minority
capital Retained holders of interest Total
earnings the parent equity
R`000 R`000 R`000 R`000 R`000 R`000
Balance at 1 11 248 74 466 165 280 1 310
April 2010 79 566 166 590
Total
comprehensive
loss for the
period
Loss for the - - (475) -
period (475) (475)
Total other - (69 716) - -
comprehensive 69 716 -
income
Transfer of - (69 716) - -
revaluation
reserve on sale 69 716 -
of property
Balance 30 11 248 4 750 164 805 1 310
September 2010 148 807 166 115
Total
comprehensive
loss for the
period
Loss for the - - (28 749) (482)
period (28 (29
749) 231)
Total other - 21 021 21 771 -
comprehensive 750 21 771
income
Revaluation of - 21 771 21 771 -
property, plant - 21 771
and equipment
Transfer of - (750) - -
revaluation 750 -
reserve on sale
of property
Transactions with - - (50 886) (204)
owners, recorded (50 (51
directly in 886) 090)
equity
Dividends to - - (50 886) (204)
shareholders (50 (204)
886)
Disposal of - - - (204)
minority interest - (204)
Stated Reserves Equity Minority
capital holders interest Total
Retaine of the equity
d parent
earning
s
R`000 R`000 R`000 R`000 R`000 R`000
Balance at 31 11 248 25 771 69 922 106 941 624
March 2011 107 565
Total
comprehensive
loss for the
period
Loss for the - - (32 (32 039) -
period 039) (32
039)
Total other - 3 934 239 4 173 -
comprehensive 4 173
income
Revaluation of - 4 173 - 4 173 -
property, plant 4 173
and equipment
Depreciation on - (239) 239 - -
revaluation of -
property
Balance 30 11 248 29 705 38 122 79 075 624
September 2011 79 699
REVIEW OF OPERATIONS AND INTERIM GROUP RESULTS
The results for the period under review were unsatisfactory and disappointing.
The adverse gross margin of R10,9m is mainly attributable to an unfavourable
stock variance, disruptions in production and consequent excessive overtime due
to strike actions, the costs of new pattern testing as noted below and a
national shortage of bentonite (a key input in the castings process).
The protracted strike occurred at a critical stage of supply of new products to
new customers. The need to meet the company`s obligation for reliable delivery
and quality necessitated extended overtime amounting to R6,2m.
The stock take at 30 September 2011 revealed an unexpected adverse stock
variance of 500 tons of produced goods to a value of R5,4m. Management, together
with the internal auditors are investigating the reasons and causes of the
variance, including the possibility of theft.
During the period under review, 106 new patterns compared to a norm of 3 to 4
per month were requested, made and delivered, highlighting the success of the
drive to broaden the product and customer base. New patterns demand extensive
management time and testing on the production line, representing an investment
for the future viability of the business. The research and development costs and
the cost of lost time for normal production as a result of this process amount
to some R7,4m.
Prospects/The future of Guestro
Despite the setbacks described above, the board continues to believe that,
amongst the options available to the company, the strategy adopted to
reconfigure the product and customer base holds the greatest prospect for
preserving value for shareholders in the medium term. The turn-around, which
envisages a broader customer base, requiring quality products, capable of
efficient manufacture at high utilisation of existing capacity, is underway and
is closely monitored.
Net asset value as at 30 September 2011
The net asset value per share as at 30 September 2011 at 233 cents per share is
82 cents lower than the 315 cents per share as at 31 March 2011.
The net asset value is mainly attributable to cash, Guestro Castings, the Benoni
Property, Corporate Head Office less the historical employee benefit
liabilities.
The net asset value at 30 September 2011 can be summarised as follows:
Benoni property R40, 6 million or 120 cents per share
Casting business R32, 2 million or 95 cents per share
Cash R43, 8 million or 129 cents per share
Less:
Net employee fund liabilities R23, 4 million or -69 cents per share
Other net corporate liabilities R14, 1 million or -42 cents per share
Total net asset value R79, 1 million
The net asset value does not consider 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.
Segmental reporting
The primary segment during the period was general engineering. In terms of the
geographical segment, general engineering is considered to be a South African
operation. Due to the fact that the whole business is considered as 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 the interim results.
Basis of preparation
The results for the six months ended 30 September 2011 have been prepared in
accordance with International Financial Reporting Standards (IFRS), IAS 34 -
Interim Financial Reporting, the AC 500 Standards, the Companies Act and the
Listings Requirements of the JSE Limited. The accounting policies are consistent
with those applied in the prior comparative period.
The preparation of the group`s consolidated results for the six months ended 30
September 2011, was supervised by BD Bhikha, the Financial Director.
Directorate
Mr BP Wood, the Financial Director, resigned from the Board effective 30 June
2011 in order to take up a position in his home town of Port Elizabeth. Mr BD
Bhikha was appointed as Financial Director in an interim position effective 29
August 2011.
Dividend
No ordinary dividend has been declared in respect of the period under review.
On behalf of the board
JB Magwaza (Chairman)
RF Rohrs (Chief Executive)
17 November 2011
Registered Office:
13 Lincoln Road, Industrial Sites, Benoni South, 1501
Transfer Secretaries:
Computershare Investor Services (Pty) Ltd
70 Marshall Street, Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Company Secretary: BD Bhikha
Sponsor: PSG Capital (Pty) Ltd
Auditors: KPMG Inc
Directors: JB Magwaza (Chairman)***, RF Rohrs (Chief Executive)*, BD Bhikha
(Financial Director)*, JW Dreyer**, PM Bester***, TA Morkel***
*Executive director **Non-executive director ***Independent Non-executive
director
Date: 17/11/2011 16:45:01 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,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
