| Mon 12 Mar 2001, 0:00 | | Howden Africa - Preliminary Results |
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HOWDEN AFRICA HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1996/002982/06)
("Howden Africa" or "the Group")
PRELIMINARY RESULTS
for the year ended 31 December 2000
The summarised audited results for the year ended 31 December 2000 are as
follows:
ABRIDGED CONSOLIDATED INCOME STATEMENT
Year ended Year ended
31 December 2000 31 December 1999
(Audited) (Audited)
R'000 R'000
REVENUE 336 440 370 598
Operating profit 7 453 5 543
Net financial revenue 2 403 3 506
Profit before taxation 9 856 9 049
Taxation (3 687) (4 889)
Profit after taxation 6 169 4 160
Outside shareholders' interest (1 253) (1 630)
Net profit for the year 4 916 2 530
Number of shares:
In issue ('000) 65 729 64 215
Weighted average ('000) 64 695 64 215
Earnings per share: (cents) 7,60 3,94
Dividends per share: (cents) 14,00 14,00
Interim 5,00 5,00
Final 9,00 9,00
ABRIDGED CONSOLIDATED BALANCE SHEET
ASSETS
Non-current assets 43 181 39 639
Property, plant and equipment 34 729 32 550
Long-term loan 8 452 7 089
Current assets 165 130 179 994
Inventories 52 405 52 653
Receivables and pre-payments 81 842 77 288
Amounts owing by fellow subsidiaries 576 809
Cash and cash equivalents 30 307 49 244
Total assets 208 311 219 633
EQUITIES AND LIABILITIES
Capital and reserves 103 083 106 245
Outside shareholders' interest 9 978 9 113
Non-current liabilities 1 692 467
Loan from holding company - 260
Deferred tax 1 692 207
Current liabilities 93 558 103 808
Accounts payable 85 806 94 621
Taxation 1 023 2 902
Amounts owing to fellow subsidiaries 814 505
Shareholders for dividend 5 915 5 780
Total liabilities 95 250 104 275
Total equity and liabilities 208 311 219 633
OTHER GROUP SALIENT FEATURES
Year ended Year ended
31 December 2000 31 December 1999
(Audited) (Audited)
R'000 R'000
Depreciation 4 459 4 415
Capital expenditure 4 153 6 308
Capital commitments
Authorised and contracted 1 095 -
Authorised not contracted 650 19
Net asset value per share (cents) 156,83 165,45
ABRIDGED CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Opening balance 106 245 112 671
Currency translation differences (375) 34
Net profit for the year 4 916 2 530
Issue of shares on share options 1 363 -
Revaluation of land and buildings
net of deferred taxation 136 -
Dividends (9 202) (8 990)
Closing balance 103 083 106 245
ABRIDGED CONSOLIDATED CASH FLOW STATEMENT
Cash flow from operating activities
Cash generated by operations 11 741 9 444
Utilised to (increase)/decrease
working capital (12 579) 29 146
Cash (utilised in)/generated by
operating activities (838) 38 590
Financial revenue 2 403 3 506
Dividends paid (9 067) (8 989)
Taxation paid (7 045) (12 311)
(14 547) 20 796
Cash utilised in investing activities (4 130) (4 628)
Cash effects of financing activities (260) (1 663)
(Decrease)/Increase in cash and
cash equivalents (18 937) 14 505
This is the sixth preliminary statement of Howden Africa following the listing
on the JSE Securities Exchange South Africa on 3 May 1996.
RESULTS
Depressed conditions in the markets traditionally served by capital equipment
suppliers resulted in another difficult year of trading being experienced by
Group companies. The standard product companies in particular found conditions
to be extremely trying, with consequent reductions in orders receivable
compared to that achieved in 1999. It is a concern that the volumes necessary
to support the operations base in the standard products companies were not
forthcoming from the local market, and a number of options are being explored
in terms of generating this required critical mass of business.
It is, however, pleasing to report that results achieved over the second half
of the year represent a healthy improvement over both the second half of last
year and the first half of 2000. Actions taken over the latter part of 1999,
and through the financial year, to right size operations in accordance with
available markets have begun bearing fruit in the form of improved
profitability.
Group turnover from continuing operations at R324,1 million represents a
reduction of 12,4% compared to the full year to 31 December 1999. The floods in
the early part of the year impacted negatively on sales in the pump company, it
recording levels 18,4% lower than last year. The year also witnessed the last
of the long-term Majuba baghouse contract being completed, resulting in
turnover of R30,9 million compared to R55,4 million in 1999.
The comparisons below refer to the corresponding 12-month period to 31 December
1999:
* order intake amounted to R315 million compared to R332 million in the
corresponding period;
* turnover was R336 million compared to R371 million;
* operating profit of R7,5 million compared to R5,5 million, an increase of
34,5%;
* earnings per share of 7,6 cents compared to 3,9 cents;
* at 31 December 2000 the Group had a net positive cash position of R30 million
compared to R49 million;
* exports, as a percentage of total sales, increased to 15,6% compared to 9,8%
; and
* dividends totalling 14 cents per share have been declared for the period.
OUTLOOK
There is increasing evidence that business conditions will improve over the
coming year, lead by developments on the export front and growth in fixed
capital formation. The Group continues to establish itself in markets outside
of South Africa and is well-positioned to take advantage of any improvements
forthcoming in the capital equipment market. To the extent that predictions on
these two fronts are confirmed, Group results should be favourably affected.
The past two years have, however, witnessed a spate of economic forecasts which
have not materialised. The board remains cautiously optimistic that results for
the coming year should present an improvement on that reported for 2000.
BOARD OF DIRECTORS
During the year under review Bob Cleland, Chief Executive of Howden Group
internationally, was appointed to the board of directors on 2 March 2000. His
appointment underlines the importance given to making Howden Africa an
inclusive part of the larger Howden Group and his presence is most welcome.
There were no other changes to the board.
DIVIDEND
An interim dividend of 5 cents per share was paid out on 27 October 2000
(October 1999: 5 cents). The directors have recommended a final dividend of 9
cents per share payable on 25 May 2001 to members registered as such on 4 May
2001. This will result in a total dividend for the year of 14 cents per share
(December 1999: 14 cents).
For and on behalf of the board
Dr JW Herbert
Chairman
13 March 2001
DIRECTORS: JW Herbert (Chairman)#**, RJ Cleland#**, CJ Ferreira (Managing
Director), S Meyer, TV Maphai**, R Mokate**, JC Moodie**, NWR Smith#**
(# British ** Non-executive)
COMPANY SECRETARY: MJM Lake
REGISTERED OFFICE: 1a Booysens Road, Booysens, 2091
POSTAL ADDRESS: PO Box 2239, Johannesburg, 2000
TRANSFER SECRETARIES: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg, 2001
