| Fri 11 May 2001, 0:00 | | Cargo Carriers Limited - Audited Results |
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Cargo Carriers Limited
(Registration number 1959/003254/06)
Audited results for the year ended 28 February 2001
2001 2000
INCOME STATEMENT R000 R000
Transport revenue 318 810 291 509
Other revenue 8 168 7 982
Operating and administrative costs (289 359) (257 409)
Operating profit 37 619 42 082
Profit on sale of non-vehicle assets 124 305
Investment amortisation (203) (189)
Depreciation (23 293) (20 885)
Operating profit before interest 14 247 21 313
Finance costs (12 373) (15 958)
Profit from operations 1 874 5 355
Impairment/writedown of assets (4 387) 0
(Loss)/profit before tax (2 513) 5 355
Taxation (57) (1 615)
(Loss)/profit attributable to shareholders (2 570) 3 740
FINANCIAL INFORMATION
Dividend per share (cents) 1,5 4,5
Earnings per share (cents) (12,9) 18,7
Adjustments:
- Profit on sale of non-vehicle assets (0,4) (1,0)
- Impairment/writedown of assets 22,0 0,0
- Investment amortisation 1,0 0,9
Headline earnings per share (cents) 9,7 18,6
Borrowings
Net interest-bearing borrowings to total
shareholders' interest (%) 41,3 59,8
Capacity utilised (%) 82,5 119,6
Total borrowing capacity (R000) 52 278 48 948
Net asset value per share (cents) 523 486
Ordinary shares in issue (000) 20 000 20 000
Movement in equity
Foreign currency translation movement 48 73
Revaluation of land and buildings 10 082 0
(Loss)/profit for the year (2 570) 3 740
Dividends paid during the year (900) (300)
6 660 3 513
BALANCE SHEET
2001 2000
R000 R000
Non-current assets
Property, plant and equipment 172 956 180 105
Deferred tax asset 553 0
Loan 476 1 368
Unlisted investment 1 116 1 319
Current assets
Current assets 48 076 46 281
Bank 12 984 4 297
236 161 233 370
Equity
Shareholders' interest 104 555 97 895
Non-current liabilities
Deferred tax liability 14 156 13 822
Interest-bearing long-term loans 29 293 23 335
Current liabilities
Current liabilities 61 648 59 583
Interest-bearing borrowings 26 509 38 735
236 161 233 370
CASH FLOW STATEMENT
Operating profit after non-cash flow items 35 271 39 134
Change in working capital 717 18 040
Cash generated by operations 35 988 57 174
Interest paid (12 373) (15 958)
Dividends paid (900) (1 300)
Taxation paid (723) (1 445)
Cash from operating activities 21 992 38 471
Net loans raised 9 232 6 628
Net cash flow from investing activities (7 037) (40 374)
- acquisition of fixed assets (12 860) (47 334)
- proceeds on sale of fixed assets 5 833 6 888
- (increase)/repayment on loan (10) 72
Cash generated during period 24 187 4 725
Cash and borrowings at beginning of year (30 703) (35 428)
Cash and borrowings at end of year (6 516) (30 703)
Commentary
Review
Transport revenue has increased by 9,4% in the year but regional conflict,
climatic factors and unrecoverable fuel price increases have resulted in a
significant decline in the profit from operations.
The continuing conflict in the Democratic Republic of Congo and the political
upheavals in Zimbabwe have seriously impaired transport services into those
countries. The high rainfall in the sugar cane harvesting season continuously
disrupted transport operations, resulting in considerably higher operating
costs. The change in consumption expenditure patterns in South Africa also
decreased the levels of activity in the transport of beverages. Profit margins
are narrowed by the ever-increasing cost of fuel.
These trading difficulties necessitated the curtailment of capital expenditure
which resulted in a reduction in gearing.
Pursuant to the provisions of South African Statements of Generally Accepted
Accounting Practice (AC123) any impairment in assets must be recognised as a
charge to the income statement, however, increases in the value of assets must
be taken directly to the non-distributable reserves. As a result the
impairment/writedown of assets cost of R4,39 million reflected in the income
statement relates to the writing down of the carrying value of certain
properties that were revalued at year-end (R3,49 million) and the writedown of
the current value of the loan to the share incentive trust (R0,9 million). The
carrying value of other properties was increased by an amount of R10,08
million, and this amount was taken directly to reserves and not credited in the
income statement. The net increase in reserves relating to property
revaluations is R6,59 million. The logic of this apparent incongruency is
difficult to follow and results in presenting a distorted view of a company's
profitability.
Prospects
The company's significant and ongoing investments in supply chain information
technology and supply chain collaborations are beginning to bear fruit in
improving internal trucking efficiencies and in repositioning the company to
provide greater value to clients.
The prospects for the agricultural sector seem promising as predictions are
that last year's rainfall pattern will not recur and, as a consequence,
acceptable profits should be made.
Dividend
No final dividend has been declared by the board (2000: 3,0 cents per share).
By order of the board
M J Bolton
Secretary
11 May 2001
Directors
G H Stein (Chairman), S G Chilvers, G D Bolton (Joint Chief Executive), M J
Bolton (Joint Chief Executive)
Registered office
140 North Reef Road
Elandsfontein, 1406
Transfer secretary and central share depository participant
Mercantile Registrars Limited
7th Floor, 11 Diagonal Street
Johannesburg, 2000
E-mail address: www.cargocarriers.co.za
