| Mon 21 May 2001, 0:00 | | Midas - Preliminary Announcement For Year Ended 31 |
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Midas Limited
(Incorporated in the Republic of South Africa)
(Company Registration 1968/002260/06)
Highlights
* Headline earnings per share -
94% of previous year.
* Dividend maintained.
* Strong cash inflow.
* Net assets reduced by 15%.
* Business rationalized.
PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2001
Group Income Statement
Audited Audited
Year ended Year ended
March 2001 March 2000 %
R'000 R'000 Change
Revenue 914 578 1 030 462 (11)
- continuing operations 867 095 896 821 (3)
- discontinued operations 47 483 133 641
Operating income 28 361 37 868 (25)
- continuing operations 31 831 36 696 (13)
- discontinued operations (3 470) 1 172
Net interest paid (520) (5 122)
Income before exceptional items 27 841 32 746 (15)
Exceptional items (11 957) (670)
Income before taxation 15 884 32 076 (50)
Taxation (3 678) (9 244)
Income after taxation 12 206 22 832 (47)
Outside shareholders' interest (36) (4)
Earnings attributable to
ordinary shareholders 12 170 22 828 (47)
Ordinary dividends (7 434) (6 836)
Retained income for the year 4 736 15 992
Earnings per share (cents)
Earnings per share 40.9 76.8
Headline earnings per share 73.0 77.8 (6)
Dividend per share (cents) 25.0 23.0 9
Final No 48 of 9 cents 9.0 7.0
Interim No 49 of 16 cents 16.0 16.0
Dividend cover - headline earnings 2.9 3.4
Exceptional items before taxation
Loss on the disposal and
discontinuation of businesses 11 957 670
Tax relief attributable
to exceptional items (2 117) -
Headline earnings reconciliation
Earnings per the income statement 12 170 22 828
Adjusted for: 9 541 304
Exceptional items 11 957 670
Profit on sale of plant
and equipment (299) (366)
11 658 304
Tax relief attributable
to adjustments (2 117) -
Headline earnings 21 711 23 132
Group Abridged Balance Sheet
Audited Audited
March March
2001 2000
R'000 R'000
Assets
Non-current assets 17 140 22 163
Property, plant and equipment 13 721 19 220
Other investment 2 000 2 000
Deferred taxation 1 419 943
Current assets 283 101 317 209
Inventories 126 296 156 854
Trade and other receivables 112 113 138 887
Cash and cash equivalents 44 692 21 468
Total assets 300 241 339 372
Equity and liabilities
Capital and reserves 158 334 153 650
Ordinary shareholders' funds 157 455 152 719
Outside shareholders' interest 879 931
Non-current liabilities
Long-term borrowings - 246
Current liabilities 141 907 185 476
Trade and other payables 141 907 184 703
Short-term borrowings - 773
Total equity and liabilities 300 241 339 372
Additional financial information
Net cash and cash equivalents 44 692 20 449
Long-term borrowings - (246)
Short-term borrowings - (773)
Cash and cash equivalents 44 692 21 468
Net operating assets 113 642 133 201
Total assets 300 241 339 372
Trade and other payables (141 907) (184 703)
Cash and cash equivalents (44 692) (21 468)
Contingent liabilities 10 364 400
Lease liabilities 10 094 -
Other 270 400
Operating lease commitments 101 809 116 109
Net asset value per share (cents) 530 514
Capital expenditure 7 717 6 173
Replacement 5 539 4 871
Expansion 2 178 1 302
Depreciation of property,
plant and equipment 5 882 8 510
Ordinary shares (000)
Issued 29 734 29 734
Weighted average 29 734 29 722
Statement of Changes in Equity
Audited Audited
Year ended Year ended
March 2001 March 2000
R'000 R'000
Balance at beginning of year 152 719 136 470
Change in accounting policy - 192
Restated opening balance 152 719 136 662
Increase in share capital
and share premium - 65
Attributable earnings for the year 12 170 22 828
Attributable earnings
before the effect of
change in accounting policy 11 426 22 806
Effect of change in
accounting policy 774 22
Dividends (7 434) (6 836)
As previously accounted for (7 434) (7 432)
Effect of change in
accounting policy - 596
Balance at end of year 157 455 152 719
Group Cash Flow Statement
Audited Audited
Year ended Year ended
March 2001 March 2000
R'000 R'000
Net cash inflow from
operating activities 12 362 27 529
Operating cash flow 24 127 46 012
Movement in working capital (3 126) 2 164
Net interest paid (520) (5 122)
Taxation paid (696) (8 707)
Dividends paid (7 423) (6 818)
Net cash effect from
investing activities 11 969 (2 137)
Capital expenditure (7 717) (6 173)
Proceeds on disposal of
plant and equipment 1 939 3 865
Proceeds on disposal of businesses 17 747 171
Net cash effect from
financing activities (334) 30
Increase in share capital
and share premium - 65
(Decrease)/increase in outside
shareholders' interest (88) 52
Net repayment of long-
term borrowings (246) (87)
Net cash inflow 23 997 25 422
Cash and cash equivalents at
beginning of year 20 695 (4 727)
Cash and cash equivalents
at end of year 44 692 20 695
Change in accounting policy
In order to comply with South African Statements of Generally Accepted
Accounting Practice, accounting policies were changed as follows:
Leave pay - now comprehensively raised
Dividends - now accounted for as and when declared
Comments
Activity levels in the automotive replacement market were flat with price
increases minimal and margins under pressure. As a result, sales in respect
of continuing operations declined from R897 million to R867 million for the
year under review. Proactive steps were taken to reduce the cost base in
order to align it more closely with the reduced sales levels and lower
margins, thereby affording some protection against the decline in
profitability. The EBITDA margin nevertheless declined to 3,7% of turnover
(2000 - 4,5%) and the operating profit margin fell to 3,1% (2000 - 3,7 %).
Headline earnings declined accordingly by 6% to 73 cents per share.
The exceptional item reflects the loss on the disposal of the commercial
vehicle workshop businesses of CBS, many of which were incurring losses.
These operations were sold to the management of those operations and a CBS
Franchise was established.
The cash position continues to improve with cash on hand of
R45 million comparing favourably to the figure of R21 million at
31 March 2000. Though tight working capital management was required to
achieve this, it was not at the expense of inventory availability, which
continued to improve throughout the group.
Prospects
The investment made to improve service levels and inventory availability
during the year should result in improved results in the year ahead, despite
the fairly flat economic outlook for the forthcoming year. In particular,
investments made in e-business (both business to business and business to
franchise) should underpin and provide growth into the future. Non-value
adding costs continue to be eliminated and efficiencies are being improved
in this competitive industry.
The Group has acquired the exclusive rights to certain original equipment
product and is sourcing higher margin imported product which will improve
the margins and underpin sales.
Declaration of Dividend No. 50
A final ordinary dividend for the year ended 31st March 2001 of 9,0 cents
per share has been declared payable to members registered in the share
register of the company at the close of business on Friday, 8th June 2001.
The dividend will be payable in South African currency on or about 18th June
2001.
By order of the Board
W W Cooper (Chairman)
G L Odgers (Chief Executive Officer)
Johannesburg
21 May 2001
Midas Limited
(Registration number 1968/002260/06)
Registered Office
Midas Building, 294 Brickfield Road, Meadowdale, Germiston
Postal Address
Private Bag X10028, Edenvale 1610
Transfer Secretaries
Mercantile Registrars Limited, PO Box 1053, Johannesburg 2001
Group Secretary
J G de Swardt
Directors
W W Cooper (Chairman), E J Vorster (Vice Chairman),
G LOdgers (Chief Executive Officer), S J Connelly, ND Dyer,
W D Galloway, R D Gudegast (German), D C Hill, D Orwin,
M J Self (British), I W Espinoza (Alternate), S Le Roux (Alternate).
E-mail
group@midas.co.za
Website
www.midas.co.za
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