| Mon 11 Jun 2012, 15:16 | | MMP - Marshall Monteagle - Unaudited Interims for 6 Month period ended 31 March |
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MMP
MMP
MMP - Marshall Monteagle - Unaudited Interims for 6 Month period ended 31 March
2012 and Dividend Declaration
MARSHALL MONTEAGLE PLC
(Incorporated in Jersey Registration No. 102785)
(SA Registration No: 2010/024031/10)
JSE CODE: MMP ISIN: JE00B5N88T08
UNAUDITED INTERIMS FOR 6 MONTH PERIOD ENDED 31 MARCH 2012 AND DIVIDEND
DECLARATION
Dear Shareholder,
We report results for the six months to 31 March 2012, a period characterised by
continued economic uncertainty and a challenging trading environment.
Results
- Group revenue is down 3% to US$101,297,000 for the six months to 31 March
2012. In constant currency sales increased by US$10,744,000 (10 %).
- Operating profit decreased by 37% to US$3,737,000 (2011 - US$5,937,000). In
constant currency operating profit increased by US$442,000 (7%).
- Exceptional gain of US$1,090,000 on disposal of equity portfolio owned by
South African subsidiary and increase in deferred taxation of US$168,000
following the early adoption of the revised taxation standard, IAS12.
- Headline earnings per share were maintained at 8.0 cents for the six months
(full year to September 2011 - 16.0 cents).
- An interim dividend of 1.6 cents is to be paid in July (2011 - 1.5 cents).
- Net assets per share US$1.87 (2011 - US$1.73). Net assets per share have
increased 9% from 30th September 2011 when they were US$1.71 per share.
Import and Distribution
Our shipping and distribution business in food and household consumer products
achieved modest growth, during what was a challenging six month period. This
division continues to provide procurement, supply chain and risk management
services to multiple retailers, wholesalers and manufacturers in Southern and
Central Africa, Indian Ocean Islands and Australia. It brings the benefits of
dedicated producers of quality raw materials, skilled technologists, first world
production facilities and well managed warehousing and distribution services to
our customers. We have well established supply partnerships with over 160
production facilities in 28 countries covering a wide range of product
categories and these partnerships are vital to the success of our business. We
continue to operate in an extremely challenging environment with unpredictable
raw material pricing and availability, volatile currency movements and the knock
on effect of lower household consumption. It would appear that these conditions
will remain over the next six months, but this division is well positioned to
operate under these conditions.
Our coffee import and roasting business managed to increase sales during the
period, but lower margins had a negative impact on profits. The business
continues to make progress in establishing itself in the local market and sells
its products to the multiple retailers and the hospitality sector. The business
has some good contracts in place and excess roasting capacity to capitalise on
future opportunities.
Our tool and machinery import and distribution business had another challenging
six months and profits were down on the same period in 2011. The DIY and
hardware industries to which the business markets its products have been weak
for some time and it could be a while before the trading environment shows signs
of improving. Overheads are being contained and the executive team are
constantly looking at ways of securing new business.
Property Portfolio
Rental income from our large multi-tenanted industrial property in San Diego was
broadly in line with the first six months of last year and our vacancy rate is
in line with market norms. Rents in the region appear to be stabilising, but
the commercial and industrial property market in Southern California remains
challenging.
The Group`s South African commercial and light industrial property portfolio had
a satisfactory six months and continues to enjoy very low vacancy levels.
Investment Portfolio
During the six month period equities were very much in demand and our portfolio
appreciated substantially. In early March 2012 a decision was taken to dispose
of the portfolio owned by our South African subsidiary which resulted in a gain
of US$1,090,000. After allowing for local taxes and sundry costs, an amount in
excess of US$3,000,000 was distributed to the parent company pending
reinvestment. We remain invested in quality equities in first world markets and
have a substantial cash balance for future buying opportunities.
Halogen Holdings P.L.C. (unlisted associate)
Halogen Holdings owns 78% of the total issued share capital of Heartstone Inns,
a developing UK group of country pubs specialising in quality food. Heartstone
currently owns and manages five rural pubs. It also manages a further four pubs
which are held through a cost efficient investment company which is looking at
acquiring further units. Heartstone remains cash positive and recently
completed an extension to one of its largest units.
Net Assets
Assets outside Africa, net of non-controlling interests and proposed dividends,
stand at US$34,672,000, equal to US$0.96 per share; the balance of
US$32,012,000, equal to US$0.89 per share, is held in South Africa. Our total
net assets, allowing for proposed dividend, amount to US$1.85 per share which
compares to US$1.71 per share at 31 March 2011.
Interim dividend
We are pleased to announce that the Company is to pay an interim dividend of US
1.6 cents per share. The dividend is payable on 13 July 2012 to shareholders on
the register at the close of business on 29 June 2012.
Shareholders on the South African register will receive their dividend in South
African Rand converted from US dollars at the closing rate of exchange on 8 June
2012. In order to comply with the requirements of Strate the relevant details
are as follows
In respect of the normal gross cash dividend, and in terms of the new South
African Tax Act, the following dividend tax ruling only applies to those
shareholders who are registered on the South African register, all other
shareholders are exempt
- the dividend has been declared from income reserves
- the dividend withholding tax rate is 15% resulting in a net dividend of US1.36
cents (11.47133 South African cents) per share to those shareholders who are not
exempt from the dividend withholding tax.
The issued number of shares as at declaration date is 35,857,512
Salient dates for dividend
Last day to trade Friday 22 June 2012
Shares trade ex dividend Monday 25 June 2012
Record date (date shareholders Friday 29 June 2012
recorded in books)
Pay date Friday 13 July 2012
Shareholders are hereby advised that the exchange rate to be used will be USD 1
= ZAR 8.4348. This has been calculated as the average of the bid/ask spread at
16H00 (United Kingdom time) being the close of business on 8 June 2012.
Consequently the dividend of US 1.6 cents will be equal to 13.49568 South
African cents.
No dematerialisation or rematerialisation of share certificates, nor transfer of
shares between the registers in Jersey and South Africa will take place between
Monday 25 June and Friday 29 June 2012, both dates inclusive.
Group Staff
Once again we would like to thank all our employees for their hard work and we
appreciate their efforts and the contribution that they have made during the
period.
Prospects
The Board find these results satisfactory in light of the difficult trading
conditions and global economic uncertainty. Our conservative policies and
diversity within the group give us confidence that we can continue to enhance
shareholder value in the long term.
J.M. Robotham,
Chairman
D.C. Marshall
Chief Executive
CONSOLIDATED STATEMENT OF TOTAL COMPREHENSIVE INCOME
Half years ended Year ended
31 March 30 September
2012 2011 2011
Notes Unaudite Unaudite Audited
d d
US$000 US$000 US$000
Group revenue 2 101,297 104,393 196,391
Operating costs (97,560) (98,456) (185,688)
Operating profit 3,737 5,937 10,703
Share of associated company`s (138) (232) (287)
results
Income from investments - 172 164 532
dividends
- interest 338 170 976
Interest paid (1,025) (1,006) (2,820)
Exchange gains 78 333 218
Other income 3 1,040 37 823
Profit before taxation 2 4,202 5,403 10,145
Taxation (1,642) (1,430) (2,712)
Profit after taxation 2,560 3,973 7,433
Profit attributable to owners 1,859 2,898 5,530
of the parent
Profit attributable to non- 701 1,075 1,903
controlling interests
Exchange differences on 3,067 1,305 (5,274)
translation into US dollars of
the financial statements of
foreign entities
Commercial property - - (351)
revaluations
Unrealised gain on revaluation 2,252 1,221 165
of available for sale
investments
Reclassification of previously (731) (25) 75
recognised (profits)/losses on
disposal of available for sale
investments
Total Comprehensive Income 7,148 6,474 2,048
Total Comprehensive Income 6,445 4,589 893
attributable to owners of the
parent
Total Comprehensive Income 703 1,885 1,155
attributable to non-
controlling interests
Interim dividend per share (US 1.6c 1.5c 1.5c
cents)
Recommended final dividend (US - 1.6c
cents)
Reconciliation between basic
and headline earnings
Basic earnings 4 1,859 2,898 5,530
Adjusted for :
Reclassification of previously 731 25 (75)
recognised profits/(losses) on
disposal of available for sale
investments
(Profit)/Loss on disposal of - (18) 113
non-current tangible assets
Headline earnings 4 2,590 2,905 5,568
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary
share Share Other Retained
capital Premium reserves earnings
US$000 US$000 US$000 US$000
Year ended 30 September 2011
Balances at start of year 26,893 4,905 7,468 19,659
Shares cancelled on re- (26,893) (4,905) - -
organisation
- - 7,468 19,659
Transactions with shareholders
Dividends paid - - - (1,074)
Shares issued 8,964 23,606 - -
Acquired from non-controlling - - (438) 2,307
interests
Total transactions with 8,964 23,606 (438) 1,233
shareholders
Total comprehensive income - - (4,637) 5,530
Balances at end of year 8,964 23,606 2,393 26,422
Half year ended 31 March 2012
Balances at start of period 8,964 23,606 2,393 26,422
Transactions with shareholders
Dividends paid - - - (574)
Total comprehensive income - - 4,360 2,085
Balances at end of period 8,964 23,606 6,753 27,933
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
Non-
Total Controlling Group
shareholde Interests total
rs
US$000 US$000 US$000
Year ended 30 September 2011
Balances at start of year 58,925 11,816 70,741
Shares cancelled on re-organisation (31,798) - (31,798)
27,127 11,816 38,943
Transactions with shareholders
Dividends paid (1,074) (817) (1,891)
Shares issued 32,570 - 32,570
Acquired from non-controlling 1,869 (1,869) -
interests
Total transactions with 33,365 (2,686) 30,673
shareholders
Total comprehensive income 893 1,155 2,048
Balances at end of year 61,385 10,285 71,670
Half year ended 31 March 2012
Balances at start of period 61,385 10,285 71,670
Transactions with shareholders
Dividends paid (574) (384) (958)
Total comprehensive income 6,445 703 7,148
Balances at end of period 67,256 10,604 77,860
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 March 30
September
2012 2011 2011
Unaudited Unaudited Audited
US$000 US$000 US$000
Non-current assets
Investment property 30,642 28,681 29,065
Property, plant and equipment 9,501 14,246 9,912
Goodwill 553 - 525
Investments
Associate 1,738 1,603 1,511
General portfolio - (note 5) 14,208 17,274 16,252
56,642 61,804 57,265
Current assets
Inventories 27,970 27,900 25,521
Accounts receivable 43,069 33,144 30,570
Other financial assets 1,403 62 1,341
Tax recoverable 551 29 294
Cash 12,528 18,101 14,406
85,521 79,236 72,132
Current liabilities
Accounts payable (46,539) (44,789) (42,781)
Tax payable (1,309) (932) (599)
Net current assets 37,673 33,515 28,752
Total assets less current 94,315 95,319 86,017
liabilities
Non-current liabilities
Accounts payable (13,470) (16,724) (11,531)
Deferred taxation (2,985) (3,516) (2,816)
77,860 75,079 71,670
Capital and reserves
Called up share capital 8,964 8,965 8,964
Share premium account 23,606 23,606 23,606
Other reserves 6,753 8,160 2,393
Retained earnings 27,933 21,446 26,422
Equity attributable to owners 67,256 62,177 61,385
of the parent
Non-controlling interests 10,604 12,902 10,285
77,860 75,079 71,670
Net assets per share US$ (note 6) 1.87 1.73 1.71
Consolidated Statement of Cash Flow
Half years ended Year ended
31 March 30
September
2012 2011 2011
Unaudited Unaudited Audited
US$000 US$000 US$000
Revenue 101,297 103,893 196,391
Operating costs (97,560) (97,956) (185,688)
Operating activities
Operating profit 3,737 5,937 10,703
Adjusted for:
Depreciation 717 294 715
Changes in working capital:
Increase in inventories (2,449) (5,063) (1,695)
Increase in debtors (11,563) (10,703) (4,793)
(Decrease)/Increase in (977) 13,634 7,359
creditors
Cash (absorbed)/generated by (10,535) 4,099 12,289
operations
Interest paid (1,025) (1,006) (2,820)
Taxation paid (924) (836) (2,988)
Net cash (outflow)/inflow (12,484) 2,257 6,481
from operating activities
Investment activities
Purchase of, and (250) (557) (2,023)
improvements to, tangible
non-current assets
Proceeds of disposal of - 46 116
tangible assets
Acquisition of investments (60) (1,226) (4,015)
Increase in investment in (365) - -
associate
Proceeds on disposal of 4,621 468 3,275
investments
Dividends received 172 164 532
Interest received 338 334 976
Net cash inflow/(outflow) 4,456 (771) (1,139)
from investment activities
Net cash (outflow)/inflow (8,028) 1,486 5,342
before financing
Financing activities
Net increase in long term 1,939 6,271 1,078
debt
Cost of non-controlling - - (1,439)
interests acquired
Dividends paid - Group (574) - (1,074)
shareholders
Dividends paid - non- (384) (799) (817)
controlling interests of
subsidiaries
Net cash 981 5,472 (2,252)
inflow/(outflow)from
financing activities
Net (decrease)/increase in (7,047) 6,958 3,090
funds
Net funds at start of period 11,538 8,587 8,587
Effect of foreign exchange 458 154 (139)
rates
Net cash and cash 4,949 15,699 11,538
equivalents at end of period
Notes to the interim statement
1. The results and the cash flow statement for the half-year ended 31 March 2012
are unaudited and comply with IAS 34 - Interim Financial Reporting. They have
been prepared on the basis of accounting policies adopted in the accounts for
the year ended 30th September 2011, other than the early adoption of IAS12
regarding provision for deferred taxation (which has no material effect on the
results). They comply with International Financial Reporting Standards and JSE
listing requirements. The results for the year to 30 September 2011 are an
abridged version of the former Group`s full accounts for that year, which have
been filed with the relevant authorities.
2. The segmental analysis of revenue and operating profit is as follows:
Half years ended 31 March Year ended 30
September
2012 2011 2011
US$000 US$000 US$000
Revenue Result Revenue Result Revenue Result
Analysed by
activity:-
Import/distribut 98,910 3,308 101,954 5,190 191,548 9,240
ion
Property 2,387 949 2,398 907 4,833 1,730
Other - 68 41 507 10 1,460
101,297 4,325 104,393 6,604 196,391 12,430
Share of (138) (232) (287)
associated
company`s
results
Interest paid (1,025) (1,006) (2,821)
3,162 5,366 9,322
Other income 1,040 37 823
(note 3)
Profit before 4,202 5,403 10,145
tax
3. The other income arises from the following.
31 March 30
September
2012 2011 2011
US$000 US$000 US$000
Investment property revaluations - - 918
Profit on disposal of investments 1,056 25 24
Fair value adjustments on derivative - (6) 12
instruments
Profit/(Loss) on disposals of non- - 18 (113)
current tangible assets
Re-organisation costs (16) - (18)
Other income 1,040 37 823
4. Basic earnings per share are based on results attributable to members and
on 35,857,512 shares in issue (2011; - 35,711,082). A reconciliation of basic
and headline earnings is shown above.
5. A geographical analysis of the General Portfolio of investments is as
follows:-
United Kingdom 3,326 3,669 3,802
United States of America 3,811 4,980 4,668
Europe, excluding the U.K. 3,612 4,068 4,210
Switzerland 2,215 3,494 2,278
Japan 958 777 887
13,922 16,988 15,845
Unlisted - Europe and other 286 286 407
14,208 17,274 16,252
6. Net assets per share are based on equity attributable to owners of the
Company.
7. There was capital expenditure of US$250,000 during the period (2011 -
US$557,000). There was no contracted or outstanding authorised capital
expenditure at the reporting date.
11 June 2012
Sponsor
Sasfin Capital
(a division of Sasfin Bank Limited)
Date: 11/06/2012 15:16:46 Produced by the JSE SENS Department.
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