| Fri 8 Jun 2001, 0:00 | | Ozz Limited - Audited Results |
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OZZ LIMITED
Incorporated in the Republic of South Africa
Registration No 1946/024058/06
Audited group results
For the year ended 31 March 2001
Income statement
2001 Change 2000
Rm % Rm
Turnover 466,7 +10 425,3
Operating income 54,2 -14 62,8
Net finance income 3,2 7,3
Income before taxation 57,4 70,1
Taxation (14,3) (17,0)
Headline earnings 43,1 -19 53,1
Revaluation of properties to selling price (22,2)
Premium paid on acquisition of business (6,0)
Ordinary earnings 20,9 47,1
Shares in issue (weighted number) (million)* 20,9 24,2
Headline earnings per share
(fully diluted) (cents)* 205,8 -6 218,9
Ordinary earnings per share
(fully diluted) (cents)* 100,0 194,2
Interim ordinary dividend per share (cents) 18,0 18,0
Final ordinary dividend per share (cents) 72,0 72,0
Total ordinary dividend per share (cents) 90,0 90,0
Dividend cover (times) 2,3 2,4
Balance sheet
2001 2000
Rm Rm
ASSETS
Non-current assets 194,2 222,8
Tangible fixed assets 164,2 192,8
Financial assets 30,0 30,0
Current assets 211,8 235,2
Inventories 80,3 71,5
Trade and other receivables 109,1 105,0
Cash and cash equivalents 22,4 58,7
Total assets 406,0 458,0
EQUITY AND LIABILITIES
Equity capital and reserves 309,1 361,5
Stated capital 92,3 121,7
Non-distributable reserves 37,6 59,6
Distributable reserve
- retained income 199,9 177,8
329,8 359,1
Shares repurchased, held by subsidiary (25,5) (2,7)
Ordinary shareholders' interest 304,3 356,4
Preference share capital and premium 4,8 5,1
Non-current liabilities 35,5 5,7
Long term liabilities 26,0
Deferred taxation 9,5 5,7
Current liabilities 61,4 90,8
Taxation 4,6 6,1
Trade and other payables 56,8 76,3
Current portion of long-term liabilities 8,4
Total equity and liabilities 406,0 458,0
Number of shares in issue (millions)
- ordinary* 18,3 23,7
- convertible preference 0,5 0,5
Net asset value per share (cents)* 1 646 1 492
Current asset ratio 3,5 2,6
*After taking into account buyback of shares
Cash flow statement
2001 2000
Rm Rm
Cash generated by operating activities 59,0 99,9
Cepcor acquisition (15,0)
Finance costs (4,3) (4,3)
Taxation paid (12,0) (23,3)
Cash available from operating activities 27,7 72,3
Dividends paid
- preference (0,6) (0,5)
- ordinary (20,4) (21,1)
Net cash flow from operating activities 6,7 50,7
Net cash outflow from investing activities (8,0) (84,7)
Maintain operations (5,6) (9,1)
Expand operations (2,4) (45,6)
Unlisted investment (30,0)
Financing activities (35,0) (3,9)
Preference shares (redeemed)/issued (0,3) 4,2
Borrowings raised/(repaid) 17,5 (5,4)
Buyback of shares (52,2) (2,7)
Net cash outflow (36,3) (37,9)
Comparatives have been restated to conform with the new South African
Statement of Generally Accepted Accounting Practice whereby dividends
declared after year end are no longer accrued.
Segmental analysis
2001 Change 2000
Rm % Rm
Turnover
- Engineering 452,8 +10 410,2
- Property investment 13,9 -8 15,1
466,7 +10 425,3
Operating income
- Engineering 50,6 -11 56,7
- Property investment 3,6 -41 6,1
54,2 -14 62,8
Statement of changes in equity
Non-
Preference distri-
Stated share butable Retained
capital capital reserves income Total
Balance at 31 March 1999 121,7 0,9 58,5 152,3 333,4
Shares issued 4,2 4,2
Shares purchased by
Subsidiary (2,7) (2,7)
Surplus on revaluation
of fixed property 1,1 1,1
Net profit for the year 47,1 47,1
Dividends paid:
- ordinary (21,1) (21,1)
- preference (0,5) (0,5)
Balance at 31 March 2000 119,0 5,1 59,6 177,8 361,5
Shares issued 0,1 0,1
Shares repurchased (29,4) (29,4)
Shares redeemed (0,4) (0,4)
Shares purchased by
Subsidiary (22,8) (22,8)
Transfer (22,2) 22,2
Surplus on revaluation of
fixed property 0,2 0,2
Net profit for the year 20,9 20,9
Dividends paid:
- ordinary (20,4) (20,4)
- preference (0,6) (0,6)
Balance at 31 March 2001 66,8 4,8 37,6 199,9 309,1
Comments
Financial results
1. Salient features of the results are:
(a) Headline earnings per share declined by 6% to 206 cents (2000 - 219
cents).
(b) The dividend per ordinary share was maintained at 90 cents, covered 2,3
times by headline earnings per share.
(c) Net finance income was lower by R4,1 million due to the payment for
Cepcor, share buybacks and the financing of the new Sinto Plant.
2. Our engineering businesses were buoyed by strong demand in the domestic
market, but this was more than offset by level demand for exports and
tighter margins. Of the 14% decrease in operating income, 11% was
attributable to engineering.
Share buybacks
Our buyback programme was continued with a further repurchase of 5,4 million
shares for R52,2 million at an average cost of R9,68 per share. An annual
buyback of up to 40% of outstanding shares is permissible and we will be
seeking shareholder approval at the forthcoming annual general meeting to
continue this process.
Sale of Randburg Waterfront and Bruma Boardwalk
Subject to the fulfilment of suspensive conditions, we have disposed of our
major property investments, Randburg Waterfront (75% owned) and Bruma
Boardwalk (25% owned) to Allan Gray Property Trust ("Grayprop") for R58,3
million with effect 31 March 2001. Ozz will receive 24 million units in
Grayprop as settlement of the purchase consideration. Grayprop units are
listed on the JSE Securities Exchange South Africa under Real Estate -
Property Unit Trusts.
Prospects
The group manufactures and distributes wearparts in South Africa and exports
these products to seventeen countries around the globe. Significant progress
has been made through continued development of these engineering businesses
through organic growth and focused acquisitions. The utilisation of new
production capacity and further initiatives to promote cost savings and
efficiency gains across all divisions will contribute to renewed growth.
Market conditions at the start of the new financial year are more favourable
than last year and, together with our recent investments and full year's
benefit of share buybacks, are expected to produce growth in headline
earnings and dividends in the year ahead.
A review of the 2001 results and prospects for year ending 31 March 2002
will be dealt with in the 2001 annual report which will be mailed to
shareholders in due course.
Dividend declaration
Notice is hereby given that a final ordinary dividend of 72,0 cents per
share has been declared in respect of the year ended 31 March 2001, payable
on 3 August 2001. The last day to trade to participate in the dividend will
be 13 July 2001 and will commence trading ex the dividend from the
commencement of business 16 July 2001 and the record date will be 20 July
2001.
By order of the board
I H STERN
Secretary
Friday, 8 June 2001
Directors: G Zulberg (Chairman), J Becker, M Becker, B J R Burt, K E
Haskell, C L Lambooy, E Magid JP, I H Stern, C Zulberg
Secretary: I H Stern
Registered office: 53 Central Street, Houghton Estate, 2198
Transfer secretaries: Mercantile Registrars Limited, 10th Floor, 11 Diagonal
Street, Johannesburg, 2001
