| Tue 29 May 2001, 0:00 | | Intertrading - Audited Results |
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INTERTRADING LIMITED
Registration number 1987/004777/06
("Intertrading" or "the company")
* Turnover up 69%
* Operating income up 20%
* Headline earnings per share up 19%
* Future prospects good
AUDITED RESULTS FOR THE YEAR ENDED 28 FEBRUARY 2001
Consolidated income statements
Audited Audited
Year Year
ended ended
2001 2000
R'000 R'000
Revenue 315 500 186 225
Operating profit before interest and
amortisation of goodwill 9 133 7 586
Net interest paid (1 158) (186)
Amortisation of goodwill (2 048) (2 048)
Net income before taxation 5 927 5 352
Taxation (831) (1 531)
Net income after taxation 5 096 3 821
Income from associated companies 13 133
Net income attributable to shareholders 5 109 3 954
Statement of changes in equity
Audited Audited
Year Year
ended ended
2001 2000
R'000 R'000
Equity at 29 February 2000 57 296 54 842
Net profit for year 5,109 3 954
Dividend declared - (1 500)
Equity at 28 February 2001 62 405 57,296
Financial highlights
Audited Audited
Year Year
ended ended
2001 2000
R'000 R'000
Number of ordinary shares ('000) 50 000 50 000
Weighted average number
of shares in issue ('000) 50 000 50 000
Headline earnings per share (cents) 14,3 12,0
Earnings per share (cents) 10,2 7,9
Net asset value per share
- excluding goodwill (cents) 51,1 36,8
Dividend per share (cents) - 3
Cash flow statements
Audited Audited
Year Year
ended ended
2001 2000
R'000 R'000
Cash utilised by operations (15 553) (5 634)
Net interest paid (1 158) (186)
Taxation paid (757) (4 371)
Dividend paid (1 500) (1 500)
Cash utilised by operating activities (18 968) (11 691)
Net cash flow from investing activities (1 365) (1 500)
Net cash flow from financing activities 405 (34)
Net movement in cash (19 928) (13 225)
Net cash resources at beginning of year (3 046) 10 179
Net cash resources at end of year (22 974) (3 046)
Consolidated balance sheets
Audited Audited
Year Year
ended ended
2001 2000
R'000 R'000
ASSETS
Non-current assets
- tangibles 5 606 5 079
- intangibles 36 863 38 911
- investments 1 773 1 792
Current assets 88 082 41 178
132 324 86 960
EQUITY AND LIABILITIES
Share capital 5 000 5 000
Share premium 44 452 44 452
Distributable reserves 12 953 7 844
Shareholders' interest 62 405 57 296
Long-term liabilities 601 196
Deferred taxation 263 538
Current liabilities 69 055 28 930
132 324 86 960
Nature of business
Intertrading is an international agri-business service company focusing on
two areas of activity, namely:
i. the procurement and global export marketing of Southern African fruit
via sea- and airfreight; and
ii. the international trading of commodities to supplement shortfalls in
South Africa and the sub-Saharan areas.
The shares are listed in the Industrial - "Food" sector of the
JSE Securities Exchange South Africa ("JSE") lists.
Comment on results
Turnover for the year ended 28 February 2001 increased by 69% from R186
million in the previous year to R316 million, the increase deriving largely
from organic growth in the agricultural commodities business that was
successfully initiated by Intertrading last year.
Operating income grew by 20% from R7,6 million to R9,1 million. This result
is commendable in the light of reduced margins arising from an oversupply in
European markets and poor quality of the fruit crop in 2000, particularly in
citrus and avocado pears, and to a lesser extent in mangoes. Headline
earnings per share increased by 19% from 12,0 cents per share to 14,3 cents
per share.
Short-term borrowings increased to R23 million at year-end. Approximately
75% of this debt is "ring-fenced" and is related to structured agricultural
commodity transactions, which have limited recourse to the company.
Intertrading is under no pressure in relation to its borrowing facilities.
Operational review
As stated previously, margins in Intertrading's traditional citrus and
tropical fruit trading divisions were impacted by world oversupply and poor
quality. This situation was more than compensated for by good performance in
the airfreight, international trading, macadamia and commodity trading
divisions. The international trading division, in particular, showed good
profits. Intertrading's joint venture macadamia nut processing facility at
Schagen, Mpumulanga, is performing above expectation.
The expansion of Intertrading's operations in the Western Cape is proceeding
slowly but steadily and is being assisted strongly by good trading
conditions in the current year.
Prospects
In contrast to last year, Southern African fruit quality is good across the
board in the current season. In addition, international demand for quality
fruit is strong, leading to good margins, albeit at lower volumes than last
year.
There is good growth in the commodities trading division business and it is
looking forward to a successful year.
Subject to no unforeseen circumstances, the company expects strong growth in
profits for the financial year ending 28 February 2002.
STRATE
The company joined the STRATE system with effect from 16 October 2000, as
part of the JSE's initiative to move to an electronic settlement system for
share transactions.
Dividend
Notice is given that an annual dividend (No. 3) of 3 cents per share has
been declared for the year ended 28 February 2001. The last day to trade in
order to participate in the dividend will be Friday, 29 June 2001. The
share will start trading "EX" the dividend from Monday, 2 July 2001 and the
record date will be Friday, 6 July 2001. Dividend cheques will be posted on
or about 27 July 2001.
By order of the board
G F M van Rooyen
Managing Director
Johannesburg
29 May 2001
Registered office: Transfer secretaries:
Kuehne and Nagel House Computershare Services
37 Bath Avenue Edura House
Rosebank 2195 41 Fox Street
(PO Box 1720, Parklands 2121) Johannesburg 2001
(PO Box 61051
Marshalltown, 2107)
Directors:
Dr P Deetlefs (Chairman), G F M van Rooyen (Managing Director),
E W Blomkamp, Dr A Hahn, A J de Kovel*, B R J licher.
*Netherlands
