| Fri 16 Mar 2001, 0:00 | | Gubb & Inggs Limited - Interim Results |
|
GUBB & INGGS LIMITED
(REGISTRATION NUMBER 1916/001495/06)
INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2000
CONSOLIDATED Income Statement
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
R'000 31/12/00 31/12/99 30/06/00
Revenue 187 256 137 916 334 492
Cost of sales 159 354 117 078 285 634
Gross profit 27 902 20 838 48 858
Other operating income 2 018 1 002 5 937
29 920 21 840 54 795
Operating expenses 16 226 13 406 30 680
Results from operating activities 13 694 8 434 24 115
Financing costs 7 686 5 382 12 743
Profit before taxation 6 008 3 052 11 372
Taxation 609 - 1 134
Profit after taxation 5 399 3 052 10 238
Minority interest 2 (49) 494
Profit for the period 5 397 3 101 9 744
Shares issued 2 031 2 031 2 031
Earnings per ordinary share (cents) 265,7 152,7 479,8
Dividend per ordinary share (cents) 15,0 15,0 50
Dividend cover per share (times) 17,7 10,2 10,2
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
R'000 31/12/00 31/12/99 30/06/00
Assets
Non-current assets
Property, plant and equipment 33 863 33 349 34 482
Investment properties 13 300 6 151 13 300
Unlisted investments 954 710 954
Loans 5 5 5
Deferred taxation 1 226 - 1 326
49 348 40 215 50 067
Current assets
Inventories 133 999 106 385 129 243
Trade and other receivables 75 917 71 984 78 291
209 916 178 369 207 534
Total assets 259 264 218 584 257 601
Equity and liabilities
Capital and reserves
Share capital 1 015 1 015 1 015
Share premium 277 277 277
Non-distributable reserves 21 823 16 323 21 823
Distributable reserves 66 460 52 537 61 063
Ordinary shareholders' interest 89 575 70 152 84 178
Outside shareholders' interest 1 069 528 1 070
90 644 70 680 85 248
Non-current liabilities
Deferred taxation 2 453 - 2 269
Long-term liabilities 1 112 686 686
3 565 686 2 955
Current liabilities
Trade and other payables 11 841 22 207 20 882
Amount owing to
group companies 3 577 4 577 4 302
Bank overdrafts 149 637 120 434 144 214
165 055 147 218 169 398
Total equity and liabilities 259 264 218 584 257 601
STATEMENT OF CHANGES IN EQUITY
Non-
Share Share distributable Accumulated
capital premium reserves profit Total
R'000 R'000 R'000 R'000 R'000
Balance at
1 July 1999 1 015 277 13 425 52 335 67 052
Net profit
for the year 9 744 9 744
Surplus on
translation of
foreign subsidiaries 1 249 1 249
Surplus on
revaluation of
investment
properties 7 149 7 149
Dividends (1 016) (1 016)
1 015 277 21 823 61 063 84 178
Net profit
for the period 5 397 5 397
Balance at
31 December 2000 1 015 277 21 823 66 460 89 575
REVIEW OF ACTIVITIES
The long-awaited recovery in world wool markets seem to be at last under way. A
steady improvement in prices and trading conditions has been evident since the
beginning of the current season, reflected by better utilisation of processing
capacities worldwide.
While the improvement in wool prices must be seen against a backdrop of a
genuine recovery in world wool demand during 2000 (of which China accounted for
over 24%), it is likely that fears of a shortage of wool supply in 2001 has
contributed to driving the market forward. After years of 'just in time' buying
policies, pipelines have been allowed to run dry at a time when world wool
production has reached its lowest point in 15 years. In addition, the
'infamous' stockpile in Australia which stood at 4,1 Million bales in 1991 and
impacted so negatively on confidence in the wool industry during much of the
90's, has virtually disappeared as have 'on farm' wool stocks in Australia
which had reached over 800,000 bales a year ago.
Your Group has benefited from these improved trading conditions. With machinery
running at full capacity, turnover has increased by 35% compared to the same
period last year. On the other hand your directors are concerned by the
continuing decline of the wool clip in South Africa, which is expected to
register a further low point during the current season. Such dwindling supply
of raw material in South Africa tends to make local wool processing less
competitive in world markets, particularly as far as topmaking is concerned,
where margins continue to be under pressure. Fortunately scoured and carbonised
business has seen an improvement in margins over the past six months.
Mohair continued to make a major contribution during the period under review,
both with respect to mill throughput and positive trading margins. While there
are no indications that the demand for mohair will materially reduce in the
short-term, one must be aware that this special fibre has been enjoying a
longer than usual fashion cycle. As in the case of wool, world mohair
production has also reached a long-term low with South Africa's share of a much
reduced world production of around 60%. With South Africa's and your Group's
leading position in the world mohair industry, the additional value-added
activity of our subsidiary, Mohair Spinners SA, will be of strategic importance
in the future.
The improved market conditions have seen a follow through into the second half
of the Group's trading period with wool prices having further increased early
in the new year. As mentioned above, the dwindling raw supplies remain a
serious concern. Nevertheless, with an encouraging increase of commission
processing activity as a result of the overall better trading conditions and a
very positive level of labour relations enhancing productivity in the mill to
the benefit of all role-players, one must be reasonably optimistic that a
satisfactory result will be achieved for the financial year ending June.
However, in view of the necessity of future capital expenditure, the directors
will continue to pursue a conservative dividend policy.
DECLARATION OF DIVIDEND NO. 101
Notice is hereby given that interim dividend no. 101 of 15c per share has been
declared in respect of the year ending 30 June 2001, payable to shareholders
registered in the books of the company at the close of business on 6 April
2001. Dividend warrants will be posted on or about 4 May 2001. The transfer
books and register of members will be closed from 7 April to 13 April 2001,
both days inclusive, for the purpose of compiling the list of shareholders
entitled to dividend no. 101.
By order of the Board 15 March 2001
H.N. Bonner Secretary
Transfer Secretaries: Computershare Services Limited, PO Box 61051,
Marshalltown 2107.
Registered Office: Hendrik van Eck Drive, Uitenhage. PO Box 23, Uitenhage 6230.
Directors: JP Stucken (Chairman) HN Bonner RC Haw* OEW Isenbeck* (German) RA
Kirsten W MacDonald* KD Mielke* (German) DJ Van Deemter.
* (Non-executive)
