| Tue 8 May 2001, 0:00 | | Astrapak Results For The Year Ended 28 February 20 |
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Astrapak Limited
(Incorporated in the Republic of South Africa)
(Registration number 1995/009169/06)
RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
Consolidated Income Statements
Audited Audited
R000's 2001 2000
Revenue 697 418 607 895
Continuing operations 678 654 581 502
Discontinued operation - 11 904
Acquired and start up operations 18 764 14 489
Cost of sales 416 549 342 093
Gross profit 280 869 265 802
Net operating expenses 212 507 189 065
Operating income before
interest and taxation 68 362 76 737
Continuing operations 68 362 76 823
Discontinued operation - (86)
Net closure costs on
discontinued operation - 1 642
Net interest paid 13 790 18 087
Income before debenture interest 54 572 57 008
Distribution to linked unitholders
- debenture interest 11 311 13 916
Income before taxation 43 261 43 092
Taxation 7 605 8 374
Income after taxation 35 656 34 718
Aborted bid costs 701 -
Share of associates net
income after taxation 1 170 733
Income attributable to
minority shareholders 1 377 3 847
Attributable income 34 748 31 604
Headline income 47 196 47 477
Earnings per linked unit (cents) 45,9 44,8
Attributable income (cents) 34,6 31,1
Debenture interest (cents) 11,3 13,7
Headline earnings per
linked unit (cents) 47,1 46,7
Headline income (cents) 35,8 33,0
Debenture interest (cents) 11,3 13,7
Weighted average number of
linked units in issue (000's) 100 322 101 724
Reconciliation between attributable
income and headline income
Attributable income 34 748 31 604
Debenture interest 11 311 13 916
Net closure costs on
discontinued operation - 1 642
Amortisation of intangibles 1 137 315
Headline income 47 196 47 477
Weighted number of linked
units in issue (000's) 100 322 101 724
Consolidated Balance Sheets
Audited Audited
R000's 2001 2000
Assets
Non-current assets 208 169 192 062
Property, plant and equipment 179 805 176 737
Deferred taxation 15 635 10 740
Goodwill 10 184 3 210
Loans and investments 2 545 1 375
Currents assets 249 605 225 752
Inventories 73 102 64 189
Trade and other receivables 112 120 101 953
Cash resources 64 383 59 610
Total assets 457 774 417 814
Equity and liabilities
Capital and reserves (Equity) 107 151 76 016
Share capital 108 108
Retained income 116 911 82 336
Non-distributable reserves 8 020 9 358
Treasury shares (17 888) (15 786)
Debentures 78 008 81 008
Linked unitholders' funds 185 159 157 024
Minority interest 15 169 18 184
Non-current liabilities 53 561 65 763
Long-term interest-bearing debt 35 254 52 382
Deferred taxation 18 307 13 381
Current liabilities 203 885 176 843
Trade and other payables 129 353 97 154
Provision for debenture interest 11 311 13 916
Short-term interest-bearing debt 63 221 65 773
Total equity and liabilities 457 774 417 814
Additional information
Capital commitments (Rm)
- contracted not spent 0,4 0,1
- authorised not contracted 8,0 5,7
Finance and operating lease
commitments (Rm) 18,5 13,4
Net asset value per
linked unit (cents) 189,9 155,1
Net interest-bearing debt as a
percentage of linked
unitholders funds (%) 18 37
Net interest-bearing debt (R000's) 34 092 58 545
Long-term interest-bearing debt 35 254 52 382
Short-term interest-bearing debt 63 221 65 773
Cash resources 64 383 59 610
Abridged consolidated
cash flow statements
Audited Audited
R000's 2001 2000
Cash generated from operations 95 138 98 970
Decrease in investment in
working capital 17 751 6 879
Non-cash transactions (194) (5 128)
Net financing costs and
taxation paid (22 271) (33 731)
Net cash inflow before
distribution to linked unitholders 90 424 66 990
Interest distribution to
linked unitholders (13 916) -
Net cash inflow from
operating activities 76 508 66 990
Capital expenditure (30 399) (36 232)
Acquisition of minority
interests and subsidiaries (12 700) (5 672)
Proceeds on the disposal of assets 3 313 27 598
Cash outflow from
investing activities (39 786) (14 306)
Net cash outflow from
financing activities (32 671) (40 757)
Net increase in
cash equivalents 4 051 11 927
statement of changes in equity
Audited Audited
R000's 2001 2000
Equity as at 1 March 76 016 38 481
Non-distributable reserve (1 338) 9 358
Attributable income for the year 34 748 31 604
Costs relating to the
write off of intangibles - (154)
Acquisition of treasury shares (2 102) (3 098)
Net ordinary dividends paid (173) (175)
Equity as at 28/29 February 107 151 76 016
Segmental analysis
R000's Films Rigids Speciality Group
Revenue - 2001 432 457 107 019 157 942 697 418
Revenue - 2000 370 430 96 421 141 044 607 895
Operating income
before interest
and taxation - 2001 34 489 11 424 22 449 68 362
Operating income
before interest
and taxation - 2000 46 250 13 000 17 487 76 737
Depreciation - 2001 15 875 5 850 4 616 26 341
Depreciation - 2000 14 691 5 138 3 731 23 560
Capital
expenditure - 2001 15 753 6 807 7 839 30 399
Capital
expenditure - 2000 17 422 7 901 10 825 36 232
Total assets - 2001 287 699 68 447 101 628 457 774
Total assets - 2000 247 154 66 595 104 065 417 814
Total
liabilities - 2001 177 023 29 561 50 862 257 446
Total
liabilities - 2000 162 258 28 001 52 347 242 606
commentary
Group Profile
Astrapak Limited ("Astrapak", "the Company" or "the Group") is focused on the
manufacture and supply of plastic packaging.
The Group consists of 17 operating companies, employs approximately
1 800 people and operates nationally via three divisions, namely Films, Rigids
and Speciality products. These companies supply plastic packaging to the food,
beverage, confectionery, fruit, consumer, petrochemical and industrial markets.
The companies are all focused in specific areas from high-volume, low-cost
producers to high-tech, specialised companies.
Astrapak invests in businesses that manufacture and develop packaging products,
which exploit the global trend towards plastic packaging through innovation and
technology; and intends to develop dominant positions in its chosen markets.
The objective of the Group is to achieve sustainable growth in earnings and
value, through organic development of its existing businesses together with the
acquisition of companies that meet Astrapak's investment criteria.
Message to investors
Trading conditions in the second half of the financial year were somewhat
better than those experienced in the first half. As a result, the Group managed
to recover the 9,9% deficit in headline earnings per linked unit reported at
half year. Headline earnings per linked unit for the full year are 0,9% higher
than last year.
The ongoing raw material price increases, which commenced in the previous
financial year have continued to impact negatively on margins in the current
year. The redirection of private consumer expenditure to the mobile phone and
gambling industries during the year has resulted in a measurable reduction in
retail spending, which has also had a negative influence on the results.
Both the Films division and the Rigids division (albeit to a lesser extent)
have been adversely affected by these factors, placing margins under pressure.
The Specialty division has performed well, with the grass roots projects
started in the previous year - namely Tamperpak (Proprietary) Limited, Astra
Repro (Proprietary) Limited and Astrapak Exports (Proprietary) Limited -
contributing positively.
Acquisitions and developments
In two separate transactions, which both became effective on 1 March 2000,
Astrapak acquired the shares belonging to the minority shareholders in:
- Pak 2000 (Proprietary) Limited ("Pak 2000"), representing 14,67% of the
issued share capital of Pak 2000; and
- Diverse Labelling Consultants (Proprietary) Limited ("DLC"), representing
9,91% of the issued share capital of DLC.
Consequently, Pak 2000 and DLC are now wholly owned subsidiaries of Astrapak.
Astrapak converted a portion of the funding provided to International Tube
Technologies (Proprietary) Limited ("ITT") in the previous financial year to
equity. As a result Astrapak now owns 60% of the equity in ITT, which is
involved in the manufacture of paper cores and tubes for the industrial and
textile markets and is a supplier to the Group.
The Group acquired 60% of the issued share capital of Packline Holdings
(Proprietary) Limited, an existing operation manufacturing and distributing
plastic film packaging in the Eastern Cape. The Group has had limited
representation in this region in the past and this venture allows it to access
the territory through well-established distribution channels. The transaction
became effective on 1 July 2000.
Changes to the board of directors during the year
Appointments
- G Petzer - 18 April 2000
- CA Jadwat - 10 July 2000
- RAP Upton (Chairman) - 1 January 2001
Resignations
- JH Vorster - 9 May 2000
- NO Davies - 31 December 2000
Financial results
Group turnover increased to R697,4 million (2000: R607,9 million), 14,7% ahead
of the previous year. Much of this increase was price-related, with a decline
in volumes experienced in certain subsidiaries.
Operating income before interest declined 10,9% against the previous year,
reflecting the impact of reduced margins on profitability during the review
period. Despite this shortfall there has been significant improvement since the
half-year when the operating income before interest was 22,5% down against the
comparable period in the previous year.
Net financing costs decreased by 23,7% to R13,8 million (2000: R18,1 million)
due to a decline in the average interest rate over the period as well as a
reduction in net interest-bearing debt. The taxation charge for the year is
less than in the previous year following the utilisation of assessed losses
against which deferred taxation assets had not been raised in previous years.
The net cash inflow before distribution to linked unitholders at R90,4 million
(2000: R67,0 million) improved by 34,9% year-on-year. This improvement was
primarily attributable to a reduction in working capital of R17,7 million and a
net reduction in financing costs and taxation paid of R11,4 million.
Notwithstanding the difficult trading conditions during the year, capital
expenditure of R30,3 million and an interest distribution to linked unitholders
of R13,9 million, net interest-bearing debt reduced by R24,4 million.
Prior year results have been restated as outlined below:
- The Astrapak Linked Unit Trusts have been consolidated as Special Purpose
Entities into the Group results for the first time; this accounting treatment
is in compliance with AC 412.
- To achieve compliance with AC 130, the Group has raised a provision for
bonuses, which were previously expensed in the year that bonuses were paid.
Prospects
The improved trading experienced in the second half of the financial year
reflects an improvement in consumer spending - a trend that has continued into
the next financial year. Furthermore, raw material prices are expected to
increase at manageable levels in the foreseeable future. These factors should
allow Astrapak to achieve growth in the next financial year.
Interest distribution to linked unitholders
Notice is hereby given that a distribution of 11,6 cents (2000: 13,7 cents) per
linked unit has been declared, payable on or about 31 May 2001, to linked
unitholders registered in the linked unit register of the company at the close
of business on 11 May 2001. The distribution of 11,6 cents per linked unit
represents debenture interest and approximates the average prime rate of
interest for the financial year ended 28 February 2001.
Post balance sheet event - partial redemption of debentures
The board of directors has resolved to propose a partial redemption of
debentures, by the payment of 30 cents per debenture to debenture holders
registered on 1 June 2001. This is subject to debenture holder and shareholder
approval in a general meeting to be held on 25 May 2001 as announced in the
press on 3 May 2001.
On behalf of the board
R Crewe-Brown H J Jacobs Sandton
Chief Executive Officer Financial Director 9 May 2001
Registered Office:
1st Floor Wierda Court
Johan Avenue
Wierda Valley, Sandton.
P.O. Box 652740, Benmore 2010,
South Africa.
Tel +27 11 784 5577/8/9
Fax +27 11 784 1569
Operating companies
Films division
- City Packaging (Proprietary) Limited
- Durpak (Proprietary)Limited
- East Rand Plastics (Proprietary)Limited
- Packaging Consultants (Proprietary)Limited
- Packline Holdings (Proprietary)Limited
- Peninsula Packaging (Proprietary) Limited
- Tristar Plastics (Proprietary) Limited
RIGIDS division
- Emcape Thermopak (Proprietary) Limited
- International Tube Technologies (Proprietary)Limited
- JJ Precision Plastics (Proprietary)Limited
- PAK 2000 (Proprietary)Limited
SPECIALITY division
- Astrapak Exports (Proprietary)Limited
- Astra Repro (Proprietary)Limited
- Diverse Labelling Consultants (Proprietary) Limited
- Packaging Converters (Proprietary)Limited
- Saflite Cape (Proprietary)Limited
- Tamperpak (Proprietary) Limited
These results will be posted to investors today, 9 May 2001.
Copies of the results may be obtained from the Company Secretary.
Board of Directors: R A P Upton* (Chairman), R Crewe-Brown (Chief Executive
Officer), R T Dalais*, D T du Toit, W F Hirzebruch*, H J Jacobs, C A Jadwat*, G
Petzer.
*Non executive
Registrars: Computershare Services Limited, Edura House, 41 Fox Street,
Johannesburg 2001. P.O. Box 61051, Marshalltown 2107, South Africa.
