| Thu 22 Mar 2001, 0:00 | | Basil Read - Audited Results For The Year Ended 31 |
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Basil Read Holdings Limited
(Registration number 1984/007758/06)
("Basil Read" or "the company" or "the group")
AUDITED RESULTS FOR THE YEAR ENDED 31 DECEMBER 2000
Consolidated Income Statement
Audited Audited
2000 1999
R'000 R'000
Revenue 825 042 891 008
(Loss)/profit for the year (33 326) 21 324
Finance income 3 439 8 914
(Loss)/profit before tax (29 887) 30 238
Taxation 6 818 (6 593)
(Loss)/profit after tax (23 069) 23 645
Ordinary dividends - (11 571)
(Accumulated loss)/
retained profit (23 069) 12 074
Consolidated Balance Sheet
Audited Audited
2000 1999
R'000 R'000
Assets
Non-current assets 141 992 117 575
Fixed assets 98 108 90 146
Investments 38 299 26 409
Deferred taxation 5 585 1 020
Current assets 271 857 203 860
413 849 321 435
Equity and Liabilities
Capital and reserves 57 997 76 187
Issued capital 58 264 58 264
(Accumulated loss)/retained
profit (8 325) 15 183
Non-distributable reserves 8 058 2 740
Non-current liabilities 17 935 9 303
Interest-bearing borrowings 17 935 9 303
Current liabilities 337 917 235 945
413 849 321 435
Supplementary Information
Number of shares in issue ('000) 55 100 55 100
(Loss)/earnings per share (cents) (41,9) 42,9
Dividends per share (cents) - 21,0
- interim - 15,0
- final - 6,0
Headline (loss)/earnings
per share (cents) (50,6) 42,9
Net asset value per share (cents) 105,3 138,3
Capital expenditure for the period 47 740 40 492
Depreciation for the year 26 747 28 003
Consolidated Abridged Cash Flow Statement
Audited Audited
2000 1999
R'000 R'000
Net cash flow utilised by activities (1 588) (39 350)
Taxation paid (4 902) (22 181)
Dividends paid (3 306) (19 285)
Net finance income 3 439 8 914
Net cash utilised by investment
activities (30 349) (50 574)
Net cash generated from
financing activities 20 329 9 803
Movement in cash and cash
equivalents (16 377) (112 673)
Cash and cash equivalents at
beginning of year 77 182 189 855
Cash and cash equivalents at
end of year 60 805 77 182
The preliminary consolidated financial statements are prepared on the
historical cost basis. Accounting principles and policies used in preparing
this report comply with South African Statements of Generally Accepted
Accounting Practice which are consistent with those of the previous year.
Comments
The past year's results were most unsatisfactory. Despite turnover remaining at
reasonable levels throughout the year, the company has reported a loss for the
year. As indicated in the profit warning in December 2000, technical and
contractual difficulties that occurred on two contracts abroad had a
significant impact on the earnings of the group. Management have made
provisions for what they consider to be the full exposure on these contracts.
Operating profits in both the Building and Civils divisions were disappointing.
Both divisions have gone through restructuring and both divisions are now
adequately resourced to take advantage of the expected upturn in the
construction industry. The Opencast Mining division maintained a satisfactory
level of activity.
Losses for the year were 41,9 cents per share. This is marginally better than
the headline loss per share of 50,6 cents because of the profits made on the
sale of excess property within the group. The loss was reduced by deferred
taxation reversals resulting from both the conservative approach taken in the
prior year and current year losses in foreign subsidiaries.
The overall cash position of the group has remained positive despite poor
results. Current contracts, including the N4 and the Nedcor contract in Sandton
have proved to be successful. Management expects the year ahead to produce more
promising results although on a reduced turnover for 2001. The company has
already completed measures to adapt to the expected lower turnover. Seventy
percent of the group's targeted turnover for the year is secure.
In addition to the current order book:
- a subcontract for the road works for a sports complex in Abuja, Nigeria, has
been secured with Bouygues Nigeria Limited;
- the Opencast Mining division, in joint venture, is the preferred contractor
on the opencast pre-strip mining contract at the proposed Gamsberg project,
Northern Cape;
- the Civil Engineering division, in joint venture, is the scheme developer
for the N1/N2 road contract in the Western Cape; and
- the Building division, together with a Bouygues subsidiary, Exprimm, is
finalising its first property facility management agreement. Further contracts
are expected to be awarded in this sector.
The overall outlook for the year ahead looks encouraging. Improving conditions
within South Africa, including the increased fixed investment on infrastructure
and industrial projects forecast, together with Basil Read's continued focus
into Africa, are expected to have a positive impact on the bottom line in
future years.
DIVIDENDS
Owing to the loss incurred for the year, a dividend has not been declared for
the period.
STRATE
The JSE Securities Exchange South Africa has informed the company that
electronic settlement of its shares held in custody via the Share TRAnsactions
Totally Electronic ("STRATE") system will commence as from 7 May 2001. Trading
for electronic settlement will commence on 28 May 2001. The first electronic
settlement will take place on 4 June 2001. Shareholders are advised to acquaint
themselves with the requirements and implications of this change and to consult
their stockbroker, advisor or the company for assistance.
On behalf of the board of directors
JMPaoli Bedfordview
Chief executive officer 23 March 2001
Directors: R Bailey (Chairman), JM Paoli*, B Colledge, B Johansson HP Maury*, G
Mille*, I Replumaz*, P Sanders *French
Company secretary: H Power
Registered office: Block D, Gillooly's View Office Park, 5 Osborne Road
Bedfordview 2007
Transfer secretaries: Mercantile Registrars Limited, 11 Diagonal Street
Johannesburg 2000. PO Box 1053, Johannesburg 2000
