| Mon 28 Nov 2011, 17:32 | | WNH - Winhold Limited - Statement of results |
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WNH
WNH
WNH - Winhold Limited - Statement of results
WINHOLD LIMITED
(Registration number 1945/019679/06)
Incorporated in the Republic of South Africa
Share code: WNH ISIN: ZAE000033916
STATEMENT OF RESULTS
Preliminary Audited Consolidated Results for the year ended 30 September 2011
Condensed Statement of Comprehensive Income
Year ended Year ended
30 Sept 2011 30 Sept 2010
R000`s R000`s
External revenue 990 308 1 030 918
Operating profit 28 045 51 227
Investment income 15 556 15 556
Impairments (2 500) (1 573)
Net finance costs (22 842) (29 301)
Profit before taxation 18 259 35 909
Taxation (1 301) (8 233)
Share of associates PAT 431 757
Profit for the period 17 389 28 433
Total comprehensive income for the year 17 389 28 433
Attributable to non controlling interests (751) (3 608)
Attributable to equity holders of the parent 16 638 24 825
Earnings and diluted earnings per ordinary share (Cents) 13.26 19.78
Headline and diluted headline earnings
per ordinary share (Cents) 15.22 20.75
Weighted average ordinary shares
adjusted for treasury stock (000` 125 506 125 506
Total ordinary shares issued (000`s) 126 215 126 215
Total depreciation and amortisation 13 736 13 638
EBITDA 41 778 64 865
Reconciliation of headline earnings
- Comprehensive income for the period 16 638 24 825
- Impairments 2 500 1 573
- Profit on disposal of fixed assets (55) (498)
- Taxation effects of the above 15 139
Total headline earnings 19 098 26 039
Condensed Statement of Financial Position
Year ended Year ended
30 Sept 2011 30 Sept 2010
R000`s R000`s
ASSETS
Fixed assets 159 726 149 470
Loans and receivables 138 467 168 103
Investments in associates 2 318 2 265
Goodwill 24 041 26 541
Current assets 371 121 354 444
- Inventory 155 047 148 247
- Receivables 204 894 187 681
- Non current assets held for sale 2 615 5 701
- Bank and cash 8 565 12 815
695 673 700 823
EQUITY AND LIABILITIES
Ordinary share capital and premium 122 793 122 793
Retained earnings 130 757 126 979
Equity attributable to owners of the parent 253 550 249 772
Non-controlling interests 18 372 17 620
Total Equity 271 922 267 392
Non-current liabilities
- Interest-bearing 164 269 187 976
- Interest-free 20 743 15 907
- (Net) Deferred taxation 3 923 5 013
Current liabilities 234 816 224 535
Interest-bearing - Bank overdraft 37 448 18 477
- Short-term borrowings 31 278 19 022
Interest free - Payables and provisions 166 090 187 036
695 673 700 823
Supporting information
Year ended Year ended
30 Sept 2011 30 Sept 2010
- Capital commitments at period end 1 240 4 700
- Capital expenditure during the period 24 594 36 326
- Total interest-bearing borrowings 232 995 225 475
- Total interest-earning deposits 7 315 12 625
- Net asset value per share (cents) 202.0 199.0
- Total intangible assets 24 064 26 570
- Tangible net asset value per share 182.85 177.84
- Return on equity (%) 7.5 10.4
- Return on assets (%) 2.4 3.9
Condensed Statement of Changes in Equity
Equity attributable to holders of the parent
- Opening balance 249 772 237 703
- Total comprehensive income for the year 16 638 24 825
- Dividends paid (12 860) (12 756)
Balance at the end of the year 253 550 249 772
Condensed Statement of Cash Flows
Year ended Year ended
30 Sept 2011 30 Sept 2010
R000`s R000`s
Cash flow from operating activities 8 071 47 912
Profit before interest, tax and non-cash items 57 389 79 874
Changes in working capital (9 907) 23 873
Net finance costs (23 259) (29 752)
Dividends from associates 378 471
Taxation paid (3 670) (13 798)
Dividends paid (12 860) (12 756)
Cash flow from investing activities (20 859) (41 149)
Investment in / (proceeds from) fixed assets (24 594) (33 834)
Investment in loans receivable 3 735 (7 315)
Cash flow from financing activities (10 433) 11 916
Interest-bearing borrowings raised 11 926 26 545
Interest-bearing loans repaid (27 097) (19 960)
Interest-free borrowings raised 4 738 5 331
Net (decrease) /increase in cash (23 221) 18 679
Condensed Statement of Segment Results to 30 September
Mining Consumables Industrial Consumables
2011 2010 2011 2010
R000`s R000`s R000`s R000`s
Revenue 280 913 327 835 133 965 140 167
Operating profit (3 644) 12 197 2 867 4 813
Depreciation 981 919 621 686
Impairments 2 500 - - -
Taxation (1 804) 1 524 845 815
Capital expenditure 1 330 800 513 449
Total assets 110 866 125 471 49 480 45 047
Total liabilities 67 758 54 251 26 577 17 174
Flexible Plastics
2011 2010
R000`s R000`s
Revenue 567 625 664 203
Operating profit 27 091 34 427
Depreciation 11 983 10 641
Impairments - -
Taxation 2 154 2 993
Capital expenditure 22 641 34 783
Total assets 328 569 312 306
Total liabilities 194 418 201 007
Note - The "property and other" segment does not trade and comprises the balance
of the disclosure items disclosed above.
- There are no inter-segment revenues.
GROUP PROFILE
Winhold Limited ("Winhold") is a holding company with its main investments being
in its subsidiaries Gundle Limited ("Gundle") and Inmins Limited ("Inmins").
Gundle comprises of two manufacturing and distribution operations in Gauteng and
one in Swaziland, as well as a further five distribution centres in the main
coastal cities, Bloemfontein and Mbombela.
Gundle manufactures polyethylene and polypropylene bags, construction sheeting,
consumer and industrial packaging, agricultural film and dam linings and
distributes to the agricultural, chemical, construction, food processing,
industrial and consumer markets, as well as installing dam linings in sub-
Sahara Africa.
Inmins comprises 19 strategically located operations servicing the mining and
industrial sectors with a wide range of consumable and maintenance products, and
includes divisions specialising in hose, mining pipe systems, chain and sprocket
systems and conveyor belting.
REVIEW OF RESULTS
After a very positive and encouraging first half of the financial year, the
group had disappointing results in the second half resulting in a reduction of
26,6% in headline earnings per share on a decrease of 3,9% in revenue. This was
mainly caused by the extraordinary number of holidays in April, as well as the
industrial action during July 2011.
The Novara compounding division was sold during the period and losses prior to
sale were contained.
Group inventory levels have increased marginally as reductions in the Inmins
Division were offset by increases in Gundle stocks, which increased as a result
of a 30% rise in raw material prices.
Receivables have decreased over last year as a consequence of Gundle`s strategic
focus in this area. Bank borrowings have increased to fund fixed assets
additions and long-term debt repayments in Gundle.
OPERATIONAL REVIEWS
Gundle
The attributable earnings of Gundle reduced by R4,1 million. Raw material prices
and availability were unstable leading to a loss of sales and margin erosion.
The industry wide strike caused a loss of production which could not be
recouped. Demand was further negatively affected when the strikes were extended
to include the customer base. The building and construction industry remained
subdued, with the building of new houses, particularly, being at very low
levels.
The dam lining operation improved on its record performance of 2010. It is now
one of the leaders in South Africa with a stable footprint in Africa.
Plant modernisation continued and modern extruders were commissioned during the
financial year in order to produce improved products as required by the market
place, the last of which was commissioned in September.
Downstream efficiencies were improved leading to a reduction in overtime worked
and improved customer service.
The Swaziland business stabilised during the year. Volumes have returned to
normal and costs are under control. The political instability makes trading
conditions in Swaziland difficult.
Fortunately a major portion of the Swaziland factory`s revenue is derived from
South Africa.
Inmins
The trading operations maintained its profit levels although the mining supplies
component experienced difficult trading conditions. Business was lost due to
some suppliers deciding to deal directly with the end users. The cross- selling
of products to existing customers has commenced and further opportunities are
being pursued. The process of finding alternative suppliers and products
continues.
The attributable earnings of Inmins reduced by R9,564 million mainly due to the
underperformance of the value added division. This division experienced a 29%
drop in revenue due to stock-outs and contract suspensions. The steel industry
strike lead to a loss in production and sales. It was further necessary to make
significant stock and contract write-offs.
PROSPECTS
Inmins
The sale of the specialist products of the group through the whole network is
gaining momentum. It is expected to increase both the revenue and margins in the
year ahead. The efforts to find additional products continue.
The new management team at the value added division have settled in well. The
sales and marketing effort has been improved and should lead to better market
penetration. Facilities to fabricate lined steel pipe have been commissioned and
the first orders have been received. Delivery of the first product should be in
January 2012.
Gundle
Gundle has positioned itself as a market leader in many of the products it
provides, and has created niches with specialised products. Due to the capital
expenditure incurred over the last three years, new products have and are being
developed to service existing and new markets which should improve the
profitability of the group. The emphasis internationally on water preservation
continues and Gundle GeoSynthetics should therefore continue to grow.
The Gundle share of the consumer packaging market is small.
Improvements in the production facilities provide the opportunity
to grow in this market and some success has already been achieved.
CAPITAL COMMITMENTS
The amount of R1,24 million (2010: R4,7 million) reflected in the supplementary
information, relates to plant upgrades and vehicles (2010: plant and equipment)
for existing operations.
BASIS OF PREPARATION AND AUDIT OPINION
These condensed consolidated preliminary group results have been prepared in
accordance with the framework concepts and measurement recognition requirements
of International Financial Reporting Standards ("IFRS") and the AC 500 standards
and contain the information required by International Accounting Standard 34
("IAS 34"), the Listings Requirements of the Johannesburg Stock Exchange ("the
Listings Requirements") and comply with the South African Companies Act (2008).
The accounting policies applied are consistent with those used in the prior
year. The preparation of the preliminary financial information has been
supervised by the CFO, Mr GM Scrutton CA(SA). BDO South Africa Inc has audited
the preliminary financial information and their unmodified report is available
for inspection at the companies registered office. The group Integrated Annual
Report will be distributed to shareholders in December 2011.
CORPORATE GOVERNANCE
The Group subscribes to the value of good corporate governance and, where
appropriate, is committed to continued implementation of the recommendations of
the King III Report and the Listings Requirements. The Group continues to
endeavour to conduct its business in accordance with the principles of
accountability, transparency and integrity.
CONTINGENT LIABILITY,LITIGATION AND SUBSEQUENT EVENTS
There has been no change in the previously reported contingent liabilities.
There is no material pending litigation and the directors are not aware of any
material post-balance sheet events between the balance sheet date and the date
of this report.
DIRECTORATE
There has been no change in the board of directors during the year under review.
DECLARATION OF DIVIDEND
Notice is hereby given that an ordinary dividend of 0.07 cents per share
(2011:10.0 cents) for the year ended 30 September 2011 has been declared to
holders of ordinary shares recorded in the share register of the company on the
close of business on 17 February 2012.
The key STRATE dates are: Last day to trade "cum" dividend is Friday, 10
February 2012, shares trade "ex" dividend on Monday, 13 February 2012, the
record date is Friday, 17 February 2012, and the payment date is Monday, 20
February 2012.
Share certificates may not be dematerialised / rematerialised between Monday,
13 February 2012 and Friday 17 February 2012, both dates inclusive.
Ordinary individual shareholders to whom a dividend of less than R10,00 (ten
rand) has been declared, are reminded that in terms of a special resolution
registered on 26 March 2003, such amounts shall not be paid to the individual
shareholders concerned but shall be donated to an independent charity chosen by
the directors.
For and on behalf of the board
WAR WENTELER DB MOSTERT W Fourie
Chairman Deputy Chairman Chief Executive Officer
24 November 2011
Winhold Limited
Share code: WNH
ISIN ZAE000033916
Registration number 1945/019679/06
Incorporated in the Republic of South Africa
884 Linton Jones Street, Industries East, Germiston
Tel +2711 645 9800.
Directors
WAR Wenteler (Chairman)*, DB Mostert (Deputy Chairman*+),W Fourie,
