| Thu 8 Mar 2001, 0:00 | | Masnite - Preliminary Statement |
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MASONITE (AFRICA) LIMITED
Registration number 1942/015502/06
RESULTS
Audited group earnings for the year to December 31, 2000 and group balance
sheet as at December 31, 2000 together with comparatives for 1999 are reflected
hereunder
GROUP TRADING RESULTS
(R000's)
YEAR TO
DECEMBER 31
2000 1999
GROUP INCOME STATEMENT
Revenue 255,202 246,663
Cost of sales (182,027) (175,942)
Gross profit 73,175 70,721
Other operating income (plantation and 1,403 5,429
miscellaneous income)
Distribution expenses (55,564) (53,070)
Selling and administrative expenses (16,433) (18,757)
Profit from operations 2,581 4,323
Finance cost (1,547) (2,656)
Profit before tax 1,034 1,667
Income tax expense:
Current (1,187) (15)
Transfer from (to) deferred taxation 967 (167)
Transfer from deferred investment allowances 87 90
Secondary tax on companies - (111)
(133) (203)
Net profit 901 1,464
HEADLINE EARNINGS RECONCILIATION
Total net profit 901 1,464
Adjusted for:
Profit on sale of assets (150) (352)
Tax effect of adjustments 45 106
Head line earnings 796 1,218
Number of shares in issue 6 817 558 6 817 558
Earnings per share
Attributable basis 13c 21c
Headline basis 12c 18c
Fully diluted basis 13c 21c
Dividend per share
-Interim - -
-Final - 13c
GROUP BALANCE SHEET
ASSETS
Non-current assets
Property, plant and equipment 78,726 82,358
Current assets
Inventories 38,287 36,685
Trade receivables and other receivables 44,856 32,854
Amounts due by fellow subsidiary 2,423 3,418
Cash and cash equivalents 5,641 3,586
Total current assets 91,207 76,543
Total assets 169,933 158,901
EQUITY AND LIABILITIES
Capital and reserves
Share capital 5,471 5,471
Non-distributable reserves 700 700
Distributable reserves 97,129 96,228
103,300 102,399
Non-current liabilities
Interest-bearing borrowings 314 3,688
Deferred taxation 7,088 8,055
Deferred investment allowances 249 336
Retirement benefit obligation 11,812 10,116
Total non-current liabilities 19,463 22,195
Current liabilities
Trade and other payables 31,657 29,779
Bank overdrafts 14,910 5,947
Taxation 438 (2,393)
Payable to holding company 165 88
Shareholders for dividends 0 886
Total current liabilities 47,170 34,307
Total equity and liabilities 169,933 158,901
GROUP STATEMENT OF CHANGES IN EQUITY
Ordinary shareholders' equity at the beginning
of year
As previously reported 109,480 106,987
Changes in accounting policies (7,081) (5,166)
Restated 102,399 101,821
Changes in distributable reserves
Profit attributable to ordinary shareholders 901 1,464
Ordinary dividends - (886)
901 578
Ordinary shareholders' equity at the end of
the year 103,300 102,399
CASH FLOW INFORMATION
Cash flows from operating activities
Operating profit 2,581 4,323
Depreciation 10,055 10,287
Profit on sale of assets (150) (352)
Increase in liability for retirement
benefit obligation 1,696 2,736
(Utilised)generated by working capital (10,654) 4,293
Net borrowing costs (1,547) (2,656)
Taxation 1,644 (627)
Cash available from operating activities 3,625 18,004
Ordinary dividends (886) (1,432)
Net cash inflow from operating activities 2,739 16,572
Cash flows from investing activities
Additions to plant and equipment (2,756) (3,328)
Replacement of plant and equipment (3,780) (5,602)
Proceeds from disposal
of property, plant and equipment 263 529
Net cash outflow from investing activities (6,273) (8,401)
Cash flows from financing activities
Decrease in long-term borrowings (3,374) (7,582)
Net cash outflow from financing activities (3,374) (7,582)
Net (increase) decrease in bank overdrafts (6,908) 589
Net overdraft at beginning of year (2,361) (2,950)
Net overdraft at end of year (9,269) (2,361)
COMMENTS
Business conditions in the Company's markets remained depressed in the second
half of the year.
The poor growth in local demand continued the trend of the past few years.
This has entrenched the view that consumption patterns have been changing.
Capacity to finance purchases such as furniture has been greatly reduced by the
need to raise money for cellphones and gambling. Future growth for durable
goods is dependant upon the reversal of this trend.
While exports increased,commodity prices were highly competitive and the
significant freight rate increase which occurred at the beginning of the year
negated the benefit of the weakening Rand.
Costs were once again well contained and further improvements in productivity
and efficiencies were achieved.
International Paper (ultimate holding company) announced that it was disposing
of its ownership of Masonite Corporation. An agreement with a prospective buyer
is still under review in the U.S.A.
The group trading results have been prepared in accordance with the South
African statements of Generally Accepted Accounting Practice.Where applicable
comparative figures have been restated.
In view of the results, the Directors have decided not to declare a dividend.
For and on behalf of the Board
MJ Slater Managing Director
DS Cooper Financial Director
March 8 , 2001
