| Fri 30 Mar 2001, 0:00 | | Marlin Corporation Ltd/marlin Holdings Ltd - Audit |
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MARLIN CORPORATION LIMITED
(Registration number 1987/000717/06)
Audited results for the year ended 31 December 2000
CONSOLIDATED INCOME STATEMENT
Audited Unaudited
31 Dec 31 Dec % 30 June
Rm's 2000 1999 change 2000
Turnover 620,3 572,1 8 283,2
Operating income 19,6 38,2 (49) 4,5
Dividends received 0,1 0,7 (80) 0,7
Net finance charges (10,2) (10,5) (3) (3,9)
Foreign exchange gain 35,3 0,5 6 967 4,5
Exceptional items (non-recurring) (4,4) (2,7) 64 (0,2)
Income before taxation 40,4 26,2 54 5,6
Taxation (19,9) (3,1) 542 (1,7)
Income after taxation 20,5 23,1 (11) 3,9
Earnings attributable to
outside shareholders 1,6 (0,7) (330) 0,6
Associated company equity
accounted loss (0,8) - 100 0,0
Net profit 21,3 22,4 (5) 4,5
Earnings per share (cents)
- net earnings per share 6,31 6,64 (5) 1,34
- before foreign exchange profit (4,15) 6,50 (164) 0,01
- headline earnings 7,62 7,14 7 1,38
Weighted average ordinary shares
in issue (000's) 337 855 337 855 337 855
CONSOLIDATED BALANCE SHEET
Audited Unaudited
31 Dec 31 Dec % 30 June
Rm's 2000 1999 change 2000
Shareholders' funds
Ordinary shareholders' equity 289,8 265,0 9 279,7
Outside shareholders' interest 14,9 42,3 (65) 40,9
304,7 307,3 (1) 320,6
Deferred Tax 7,4 - 100 -
Interest bearing debt
Long-term borrowings 24,3 34,3 (29) 29,3
Short-term borrowings 14,2 25,4 (44) 16,2
38,5 59,7 (36) 45,5
Total capital employed 350,6 367,0 (4) 366,1
Fixed assets and investments
Operating assets 137,3 141,3 (3) 139,1
Mining/Quarrying rights 29,9 34,3 (13) 33,2
Investments and loans 37,8 38,1 (1) 40,9
205,0 213,7 (4) 213,3
Current assets
Inventories 89,0 80,1 11 90,2
Accounts receivable 206,1 185,1 11 217,8
295,1 265,2 11 308.0
Total assets 500,1 478,9 4 521,3
Less: current liabilities:
Net overdraft (17,4) (6,5) 168 (36,2)
Accounts payable (116,9) (100,9) 16 (113,7)
Taxation (15,2) (4,5) 238 (5,3)
Employment of capital 350,6 367,0 (4) 366,1
CONSOLIDATED CASH FLOW STATEMENT
Audited Unaudited
31 Dec 31 Dec 30 June
Rm's 2000 1999 2000
Cash generated from operations 102,8 84,1 39,5
Working capital movements (17,5) (17,9) (30,1)
Investment income 6,0 6,5 3,4
Interest paid (16,1) (16,3) (6,6)
Preference dividend paid (2,7) (3,4) (1,3)
Taxation paid (1,7) (0,5) (0,9)
Net cash inflow from operations 70,8 52,5 4,0
Investment activities
- maintaining operations (38,8) (12,2) (7,2)
- expanding operations - (22,8) (12,9)
- investment in subsidiaries - (2,1) -
- outside shareholders' interest (21,7) (2,5) 0,6
Net cash outflow from
investment activities 60,5 (39,6) (19,5)
Financing activities
Long-term borrowings (repaid)/raised (10,0) (2,9) (5,1)
Short-term borrowings (repaid)/raised (11,2) (11,1) (9,1)
Net cash outflow from
financing activities (21,2) (14,0) (14,2)
Net increase in overdraft (10,9) (1,1) (29,7)
Overdraft at beginning of period (6,5) (5,4) (6,5)
Net overdraft at end of period (17,4) (6,5) (36,2)
SUPPLEMENTARY INFORMATION
Audited Unaudited
31 Dec 31 Dec 30 June
Rm's 2000 1999 2000
1. Depreciation for the period (39,5) (38,7) (20,3)
2. Calculation of headline earnings
Net profit 21,3 22,4 4,5
Loss on sale and write down
of fixed assets 4,1 0,3 0,2
(Profit)/Loss on disposal of
discontinued operation (4,1) 0,2 (4,1)
Unlisted investment write-off 4,5 1,2 4,1
25,8 24,1 4,7
3. Capital expenditure for the period 38,8 37,1 20,1
- maintaining operations 38,8 12,1 7,2
- expanding operations - 25,0 12,9
4. Number of shares in issue (000's) 337,855 337 855 337 855
5. Net asset value per share (cents) 85,76 78,44 82,79
6. Gearing as % of shareholders' equity 15,03 19,44 14,21
7. Return on average net assets 7,36 8,47 1,61
PRODUCTION AND SALES STATISTICS
8. Tons removed 3 504 423 4 074 573 1 528 666
9. Tons produced 336 251 366 453 147 856
10. Recovery (%) 9,60 8,99 9,67
11. m3 sold 116 457 124 601 56 514
12. Average Landed US$ CIF/m3 price 664 677 667
COMMENTS
FINANCIAL REVIEW
Headline earnings per share increased by 6,78% to 7,62 cents from 7,14 cents in
1999. Group operating income was reduced by 49% to R19,6 million (R38,2 million
1999) mainly as result of the adverse affect of the disruptive rainfall pattern
experienced during the first half of the year.
South African quarrying operations recovered in the second half to show an
improved operating income of R22,7 million for the six months ending December,
compared with R7,4 million for the period to June 2000.
Operating costs were adversely affected by the increase in fuel prices and the
higher cost of US dollar related items of equipment and consumables.
Operating Income: '000 2000 1999 1998
Quarrying 27 767 49 723 24 946
Beneficiation (10 774) (10 984) (15 416)
Distribution 17 124 13 489 30 410
Corporate (14 556) (13 997) (17 324)
Total 19 561 38 231 22 615
Net finance charges paid of R10,2 million matched the 1999 figure although they
reduced significantly towards the end of the year.
An average exchange rate of R6,88 to the USD was achieved for the year with
foreign exchange gains of R35,3 million (R0,5 million 1999) of which R9,6
million was unrealised.
The benefit of foreign exchange gains increased income before taxation by 54%
to R40,4 million (R26,2 million 1999), although net earnings decreased 5% to
R21,3 million (R22,4 million) after taxation of R19,9 million (R3,1 million
1999). R12,9 million relates to taxation payable on this year's profit and R7,0
million is a provision for deferred taxation. The accumulated assessed loss of
the South African quarrying operations have been fully utilised.
Total interest bearing debt, including off-balance sheet debt and net bank
overdrafts, decreased to R60,2 million, down R33,2 million from R93,4 million
in June 2000, (R85,2 million December 1999). The group also redeemed preference
shares in the amount of R19,5 million, previously held by the Groups bankers.
The debt equity ratio, including off balance sheet debt, improved 41% to 16,5%
(28,0% 1999) and the net asset value per share increased 10% to 86 cents per
share.
OPERATIONAL REVIEW
Quarrying & Distribution
The heavy rainfall experienced during the first quarter-prejudiced operations
and production was down 8,24% to 336 251 tons for the year. Sales of the
Southern African materials were correspondingly lower at 94 676m3 (106 251m3
1999). Trading in external materials increased by 65% to 18 958m3 (1 1456m3
1999). Overall sales decreased 6,5% to 116 457m3 (124 601m3 1999). The average
CIF selling price achieved was USD 664 per m3 (USD 677 per m3: 1999).
Demand from key markets exceeded supply and this situation has continued into
the new financial year.
Beneficiation
The groups beneficiation arm, Minaco Granite & Marble Ltd failed to achieve
budgeted turnover mainly in the international and local distribution and sales
of construction slabs produced at the gangsaw plant in Garankuwu (Natural Stone
Processors (Pty) Ltd).
The penetration into key new markets was more difficult than expected although
progress in this highly competitive markets has been pleasing. The construction
division (Minaco Maraisburg (Pty) Ltd) had a full order book including the
cladding of the new JSE and Nedcor buildings.
North America
The quarry operations ("Rockwell") performed satisfactorily against improved
sales.
Stone Connection, the slab warehousing facility situated in Atlanta, is still
showing operating losses but is cash neutral.
PROSPECTS
Prospects for the core quarrying business remain positive with increased
production and sales expected in 2001. The market however remains competive
with USD prices expected to be unchanged in 2001.
The performance of the beneficiation division will depend on the growth of its
construction slab business and the successful outcome of its major contracts.
DIVIDEND
The board remains committed to the reduction of debt and, accordingly, no
dividend is declared.
MARLIN HOLDINGS LIMITED
(Registration number 1984/000634/06)
Audited results for the year ended 31 December 2000
Marlin Holdings Limited's investment in Marcorp is 193 640 806 ordinary shares
being 57,3%. As a consequence, the only source of revenue of the company is
dividend income from Marcorp. No dividend was received from this investment
during this financial period. The results of Marcorp are reported above and
must be read in conjunction with this announcement.
CONSOLIDATED GROUP EARNINGS
Audited Unaudited
31 Dec 31 Dec % 30 June
Rm's 2000 1999 change 2000
Attributable earnings per Marcorp 21,3 22,4 (5) 4,5
Earnings attributable to outside shareholders (9,1) (9,6) (5) (1,9)
Earnings attributable to ordinary shareholders 12,2 12,8 (4) 2,6
Weighted average shares in issue (000's) 370 875 370 875 370 875
Total shares in issue (000's) 370 875 370 875 370 875
Earnings per share (cents) 3,30 3,45 (4) 0,70
Headline earnings per share (cents) 3,99 3,72 6 0,73
After adjustments for
Headline earnings per Marcorp 25,8 24,1 4,7
Earnings attributable to outside shareholders 11,0 (10,3) (2,0)
14,8 13,8 2,7
29 March 2001
Directors:
JRR Koch* (Chairman), MV Marcenaro (CEO)**, GR Treagus (Managing Director), JS
Seymore, DGK Fish*,
*Non-executive **Italian
Marlin Granite
Kudu Granite
Impala Granite
Granite Quarries USA
Minaco Stone
