| Fri 16 Mar 2001, 0:00 | | Bell Equipment Ltd - Audited Results |
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BELL EQUIPMENT LTD
(Incorporated in the Republic of South Africa)
(Registration number 1968/013656/06)
("Bell")
* Revenue up 23,6%
* Net asset value per share up 24,4%
* Profit after tax up 75,2%
* Dividend per share up 66,7%
Audited results for the year ended 31 December 2000
CONSOLIDATED INCOME STATEMENT
For the year ended
31 Dec 31 Dec
R'000 2000 1999
Revenue 1 438 507 1 163 526
Cost of sales 1 032 289 840 670
Gross income 406 218 322 856
Other operating income 52 742 52 447
Distribution costs (232 688) (208 238)
Administration costs (69 866) (49 102)
Other operating expenses (38 477) (29 055)
Profit from operating activities 117 929 88 908
Net finance costs (Note 2) 11 538 30 363
Profit before taxation (Note 3) 106 391 58 545
Taxation 25 077 12 134
Profit after taxation 81 314 46 411
Number of shares in issue (000) 93 634 93 248
Weighted average number
of shares in issue (000) 93 429 83 248
Earnings per share
(basic) (cents) (Note 4) 87 56
Earnings per share
(diluted) (cents) (Note 4) 86 55
Dividend per share (cents) 10 6
CONSOLIDATED BALANCE SHEET
at 31 Dec at 31 Dec
R'000 2000 1999
ASSETS
Non-current assets 115 584 83 878
Property, plant and equipment 102 892 82 485
Investments and long term
receivables 12 692 1 393
Current assets 784 825 524 281
Inventory 513 638 333 366
Trade and other receivables 236 248 162 911
Prepayments 3 627 4 993
Taxation 3 053 219
Cash resources 28 259 22 792
TOTAL ASSETS 900 409 608 159
EQUITY AND LIABILITIES
Capital and reserves 496 689 397 202
Stated capital (Note 5) 222 822 221 761
Non-distributable reserves 48 458 31 314
Retained earnings 225 409 144 127
Non-current liabilities 36 411 37 392
Long-term borrowings 31 700 30 717
Deferred taxation 4 711 6 675
Current liabilities 367 309 173 565
Trade and other payables 206 254 118 871
Warranty provision 25 407 -
Current portion of long-term
borrowings 1 915 874
Proposed dividend - 5 595
Taxation 33 702 5 350
Short-term interest bearing debt 100 031 42 875
TOTAL EQUITY AND LIABILITIES 900 409 608 159
Net asset value per share (cents) 530 426
ABBREVIATED CASH FLOW STATEMENT
For the year ended
31 Dec 31 Dec
R'000 2000 1999
Operating profit before
working capital changes 172 957 97 762
Cash invested in working capital (164 860) (3 559)
Net finance costs paid (14 079) (32 477)
Taxation paid (4 955) (1 358)
Net cash (applied to)/from
operating activities (10 937) 60 368
Dividend paid (5 595) -
Invested in property, plant,
equipment, investments and long-term
receivables (40 783) (32 047)
Net cash (outflow)/surplus (57 315) 28 321
Proceeds from shares issued 1 061 180 120
Net increase in/(repayment of)
borrowings 56 254 (208 441)
Cash deficit funded/
(surplus applied) 57 315 (28 321)
Proceeds from s
STATEMENT OF CHANGES IN EQUITY
At At
31 Dec 31 Dec
R'000 2000 1999
Equity at the beginning
of the year 397 202 162 117
Changes in share capital 1 061 180 120
Issue of share capital 1 061 180 120
Changes in non-distributable
reserves 17 144 14 149
Surplus on revaluation of properties - 11 441
Deferred tax on revaluation
of properties (3 432) -
Increase in legal reserve of
foreign subsidiary 32 -
Increase in currency translation
reserve 20 655 2 733
Exchange differences on
foreign reserves (111) (25)
Changes in retained earnings 81 282 40 816
Net profit for the year 81 314 46 411
Transfer to legal reserve of
foreign subsidiary (32) -
Dividend - (5 595)
Equity at end of the year 496 689 397 202
ABBREVIATED NOTES TO AUDITED RESULTS
For the year ended
31 Dec 31 Dec
R'000 2000 1999
1. ACCOUNTING POLICIES
The principal accounting policies have been
consistently followed in all material respects,
with the exception of the accounting policies for
- deferred taxation, which has been amended to
conform with the requirements of
South African Statement of Generally Accepted
Accounting Practice AC102, Income Taxes.
- warranty costs, which has been changed
prospectively. The group now provides for the cost
of making good warranty products sold before the
balance sheet date. Warranty costs were previously
charged against income when incurred.
2. NET FINANCE COSTS
Net interest paid 7 684 18 466
Net currency exchange losses 6 395 14 011
Net finance costs paid 14 079 32 477
Financial instrument income 2 541 2 114
Net finance costs 11 538 30 363
3. PROFIT BEFORE TAXATION
Profit before taxation is arrived at after taking into account:
Income
Export incentives - gross 35 900 29 465
Net surplus on disposal of property,
plant and equipment - 2 717
Expenditure
Depreciation of property, plant and equipment 9 411 8 321
Operating lease charges
- equipment and motor vehicles 9 464 10 596
- properties 7 724 12 541
Staff costs 244 694 209 258
Warranty provision 25 407 -
4. EARNINGS PER SHARE
The calculation of earnings per share is based on
profit after taxation and the weighted average
number of ordinary shares in issue during the year.
The weighted average number of shares in issue for
the year under review was
93 429 484 (1999: 83 248 200). On a diluted basis,
the fully converted weighted average number of
shares is 94 769 134 (1999: 84 998 350).
Headline earnings per share were equivalent to
basic earnings per share.
5. STATED CAPITAL
Authorised
100 000 000 (1999: 100 000 000) ordinary shares of no par value
Issued
93 634 200 (1999: 93 248 200) ordinary shares of
no par value 222 822 221 761
6. CAPITAL EXPENDITURE
Authorised, but not contracted 31 207 22 981
7. SEGMENTAL ANALYSIS
Geographical segments
The group operates in two geographical areas.
R'm Revenue Operating Assets Liabilities
profit
2000
South Africa 703,0 60,9 658,3 287,9
Rest of the world 735,5 57,0 242,1 91,0
Total 1 438,5 117,9 900,4 378,9
1999
South Africa 467,9 11,1 473,2 154,7
Rest of the world 695,6 77,8 134,9 49,5
Total 1 163,5 88,9 608,1 204,2
Assets in South Africa are assets used to generate rest of the world revenue.
8. CONTINGENT LIABILITIES
An action has been instituted against a subsidiary of the company for a
substantial amount.
The action is being defended and the continuing view of the company's legal
advisers is that the claim has no substance. After consideration and based on
this legal advice, the Board is satisfied that the company will not suffer any
material loss.
COMMENTARY ON THE RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000
Once again I am privileged to be able to inform all Bell stakeholders of
another momentous year for our Group with the profits for the year exceeding
anything we have achieved in the past. Profit from operating activities
increased 33% over the previous year and similarly basic earnings increased 55%
to 87 cents per share from 56 cents the previous year. Equity was further
increased by R18,2 million due to a small increase in capital arising from
share options being exercised and a substantial currency gain on foreign assets
and trading, less the deferred tax adjustment following the adoption of AC 102,
Income Taxes. Net asset value per share increased by 104 cents to 530 cents
from 426 cents the previous year, a 24% increase.
Profit before taxation increased by 82% over the previous year after adopting a
more conservative accounting policy by creating a provision for warranty costs.
The effect of this decision has resulted in a reduction in earnings per share
and net asset value of 27 cents per share.
The improvement in profitability arises from a substantial drop in net finance
costs because of average lower debt and interest rates. Secondly, sales
improvements in Europe together with sales improvements in the African markets,
particularly the Southern African mining sector and increased sales arising
from our partnership with John Deere and Hitachi, has resulted in record
turnover. The weakening SA Rand relative to US$ and Euro has greatly assisted
profitability and trading conditions this year.
During December 2000, we concluded the sale of our Australian and Singaporean
company assets to Hitachi Construction Machinery Company. We will continue to
look at ways of further enhancing our association and partnership with leading
construction equipment manufacturers and distributors around the world.
The increased working capital requirement towards the end of the year was as a
result of a deliberate stock build up to cater for Northern Hemisphere demand.
2001 will be a difficult year dependent on the price of commodities and the
strength of US$ and Euro to the SA Rand, but we are better placed than before
to make the best of changing circumstances.
H J BUTTERY
Group Chairman
16 March 2001
DECLARATION OF DIVIDEND
Notice is hereby given that a dividend of ten (10) cents per ordinary share of
no par value payable in the currency in the Republic of South Africa will be
paid to shareholders registered as at 30 March 2001.
The dividend will be paid on or about 17 April 2001.
By order of the board.
D P MAHONY
Company Secretary
Registered office: Transfer secretaries:
13 - 19 Carbonode Cell Mercantile Registrars Limited
Alton PO Box 1053
Richards Bay 3900 Johannesburg 2000
Directors: G W Bell, H J Buttery (Chairman), P C Bell, M A Campbell, J M Field
(USA)*, M A Guinn (USA)*, P J C Horne*, D J J Vlok*, T D Kgobe*, M W Arnold
(USA)*, B B Brock (USA)*
Alternate Directors: P A Bell, D I Campbell, D B Rhind, T J Graff*, G P Harris,
D C Manhart*, J W Bloom*
* Non-executive
