| Fri 23 Mar 2001, 0:00 | | Imperilog Limited - Interim Results |
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Imperilog Limited
Interim results for the six months ended 31 December 2000
Condensed balance sheet
Unaudited Unaudited Audited
31.12.2000 31.12.1999 30.6.2000
R'000 R'000 R'000
Assets
Non-current assets 136 475 121 479 149 587
Fixed assets 36 209 20 045 40 232
Investments and loans 100 266 101 434 109 355
Current assets 20 500 75 756 19 641
Receivables 10 942 44 596 9 169
Inventories - 40 780 -
Cash and cash equivalents 9 558 (9 620) 10 472
Total assets 156 975 197 235 169 228
Equity and liabilities
Shareholders' interest 103 097 93 123 104 523
Non-current liabilities - 3 000 11 042
Current liabilities 53 878 101 112 53 663
Accounts payable 11 743 36 084 8 578
Provisions 42 135 65 028 45 085
Total equity and liabilities 156 975 197 235 169 228
Condensed income statement
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31.12.2000 31.12.1999 30.6.2000
R'000 R'000 R'000
Gross revenue 27 096 178 076 212 336
Net operating costs (16 802) (175 257) (199 882)
Operating profit 10 294 2 819 12 454
Net interest received 4 128 878 3 719
Equity accounted earnings of
associate 6 808 6 227 13 153
Profit before exceptional
items 21 230 9 924 29 326
Exceptional items (3 260) (9 122) (15 270)
Profit before tax 17 970 802 14 056
Tax (3 318) - 52
Net profit for ordinary
shareholders 14 652 802 14 108
Adjusted for:
Exceptional items
- Loss on discontinuance of
operations 15 634
- Investments written down 9 814
- Profit on sale of investments (1 232)
- Profit on sale of properties (550)
- Reversal of non-distributable
reserve (2 438)
- DAWN Limited
(associate company)* 3 810 (692) 3 306
Headline earnings 17 912 9 924 29 378
Number of shares in issue:
Ordinary shares 102 030 610 36 252 090 110 829 710
Preference shares - 4 500 000 4 500 000
Weighted average number of
shares 110 829 710 40 752 090 78 040 900
Basic earnings per share 13,2 2,2 12,7
Headline earnings per
share (cents)
- Basic 16,2 27,4 39,9
- Diluted 16,2 24,3 37,6
* The comparatives have been adjusted to give a more appropriate presentation
of the associate company's results. The effect of this adjustment on basic and
diluted headline earnings per share is a reduction of 1,9 cents and 1,7 cents
respectively.
Statement of changes in equity
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31.12.2000 31.12.1999 30.6.2000
R'000 R'000 R'000
Opening balance 104 523 92 321 92 321
Redemption of preference shares (4 500) -
(Buyback)/issue of ordinary
shares (7 699) - 37 289
Decrease in non-distributable
reserves - - (2 438)
Repayment of share premium (3 879) - -
Share premium written off - - (36 757)
Profit for ordinary
shareholders 14 652 802 14 108
Closing balance 103 097 93 123 104 523
Condensed cash flow statement
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to
31.12.2000 31.12.1999 30.6.2000
R'000 R'000 R'000
Cash flow from operating
activities
Cash generated by operations 6 889 141 923 86 744
Net interest received 4 128 878 3 719
Tax paid - - (16)
Net cash flow from operating
activities 11 017 142 801 90 447
Cash flow from investing
activities
Divestment of operations - - 34 000
Decrease/(Increase) in
investments and loans 7 587 - (4 903)
Additions to fixed assets (2 940) (958) (39 494)
Proceeds on disposal of
investments - 35 190 46 246
Proceeds from disposal of
fixed assets 6 042 409 7 976
Net cash flow from investing
activities 10 689 34 641 43 825
Cash flow from financing
activities
Repayment of share premium (3 879) - -
(Repayment of)/proceeds from
long-term borrowings (11 042) (51 688) 11 042
(Buyback of)/proceeds from issue
of ordinary shares (7 699) - 532
Net cash flow from financing
activities (22 620) (51 688) 11 574
Net (decrease)/increase in cash
and cash equivalents (914) 125 754 145 846
Cash and cash equivalents
at beginning of period 10 472 (135 374) (135 374)
Cash and cash equivalents
at end of period 9 558 (9 620) 10 472
Accounting policies
These consolidated condensed interim financial statements are prepared in
accordance with AC 127. The accounting policies used in the preparation of the
interim financial statements are consistent with those used in the annual
financial statements for the year ended 30 June 2000. These interim financial
statements were not audited. The comparative figures for the year ended 30 June
2000 have been audited.
Comparatives
The income statement comparative figures for the six months ended 31 December
1999 relate solely to the discontinued operations which were sold on 31
December 1999 and consequently are not comparable apart from earnings derived
from the associate company, DAWN Limited.
Business review
ImperiLog Limited is a focused provider of logistics services to the technology
sector and companies involved in high value consumer and industrial goods.
Earnings and cash flow for the six months ended 31 December 2000 were most
satisfactory. Profits from the Group's logistics operations exceeded
expectations and the budgeted forecast for the period. This was achieved mainly
as a result of the two new contracts we concluded during the latter part of the
year and the establishment of ImperiLog Botswana. The volumes handled by our
different divisions increased despite the general business slowdown experienced
in the technology sector.
Financial review
A share buyback programme was completed during the period under review. A total
of 8799100 shares were purchased under the general authorities granted by the
shareholders. This includes shares, which were indirectly owned by a former
director of the Company. The redeemable preference shares were also redeemed
with effect from 1 July 2000.
The Group's investment in associated company, DAWN Limited, returned headline
earnings of R6,808 million (1999: R6,227 million) during the period under
review. The Group's holding in DAWN Limited was diluted from 30,5% to 28,7% due
to an increase in the issued share capital of DAWN Limited.
During the period certain non-core assets were sold and a long-term liability
was settled with the proceeds generated from the sale.
The Group's property and financial assets are achieving acceptable returns and
potential contingencies are adequately provided for.
Taxation
The Group has substantial tax losses brought forward from previous years.
Certain of these losses have not yet been assessed by the South African
Revenue Services, but the Group has no reason to believe that these losses will
not be allowed in full. It is therefore the Group's intention to raise a
deferred tax asset in the annual financial statements for the year ended 30
June 2001 in accordance with AC 102. It is estimated that the Group will not
incur any normal tax for the 2001 financial year but the Group will reflect a
tax charge in the 2001 annual financial statements (representing a reduction in
the deferred tax asset) to the extent of the tax losses offset against the
current taxable income.
A notional tax charge has accordingly been raised against the Group results for
the six-month period ended 31 December 2000.
Contingent liabilities
The company has received a summons from Corpgro Limited relating to a dispute
over a business (which was sold in 1998) seeking damages of R40 million for
alleged breach of warranty and non-disclosure. The directors and the Group's
legal advisors are of the opinion that the claim can be successfully defended.
Dematerialisation
Shareholders are advised that the company's shares will be dematerialised with
effect from 16 April 2001. This indicates the date from which investors' shares
can be converted into an electronic record in order to become eligible to
settle in the STRATE environment. Trading for electronic settlement begins on 7
May 2001.
On behalf of the Board
RL Hiemstra DP de Kock
Chairman Managing Director
23 March 2001
Directors: Tak Hiemstra* (Chairman), Deon de Kock (Managing Director),
Phineas Baloi, Alan Lishman, Bill Lynch* (Irish), Rob Matthews*, Eric Molobi*,
Philip Maisel*, Ashley Mabogoane*, Johnson Njeke* (Alternate)
* Non-executive
Registered office: Unit 7, Gallagher Place South, cnr. Richards Drive and
Suttie Road, Midrand
Transfer secretaries: Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg
Website: www.imperilog.co.za
