| Wed 13 Jun 2001, 0:00 | | Gundle Limited - Financial Report |
|
(Registration number 1942/015274/06)
(Incorporated in the Republic of South Africa)
Statement of results
The board announces the unaudited consolidated results of the group for the
six months ended
31 March 2001.
Consolidated Income Statement
Year ended Six months ended
30 September 31 March
2000 2001 2000
R000 R000 R000
207 420 Revenue 112 732 97 774
8 609 Operating profit 3 102 4 185
(6 465) Net finance costs (2 904) (2 561)
2 144 Profit before taxation 198 1 624
(100) Taxation (177) (325)
2 044 Net profit after taxation 21 1 299
2 044 Headline earnings 21 1 299
10,1 Earnings and headline earnings
per share (cents)* 0,1 6,4
243,4 Net asset value per share (cents) 243,5 239,7
20 227 Shares in issue (000's) 20 227 20 227
Supplementary information
3 175 Capital commitments 2 499 -
6 244 Capital expenditure 3 266 2 599
6 539 Depreciation 3 666 3 243
Interest bearing borrowings
9 187 - land and buildings 9 292 9 356
28 790 - other 27 277 29 223
515 Interest earning deposits 906 3 295
*Headline earnings are calculated as income attributable to ordinary
shareholders before dividends, after excluding exceptional items.
Summarised Consolidated Balance Sheet
Year ended Six months ended
30 September 31 March
2000 2001 2000
R000 R000 R000
Assets
18 199 Land and buildings 18 347 18 199
42 555 Fixed and other non-current assets 41 888 43 057
948 Deferred taxation 1 774 -
78 156 Current assets 78 506 81 574
139 858 Total assets 140 515 142 830
Equity and liabilities
45 390 Share capital and premium 45 390 45 390
3 276 Non-distributable reserves 3 276 3 276
568 Retained earnings/(accumulated
deficit) 589 (177)
49 234 Ordinary shareholders' interest 49 255 48 489
Non-current liabilities
800 Interest free 860 750
Interest bearing
4 605 - land and buildings 4 682 4 746
10 263 - other 7 835 11 535
1 437 Deferred taxation 1 545 1 213
Current liabilities
4 582 - land and buildings* 4 610 4 610
68 937 - other 71 728 71 487
139 858 Total equity and liabilities 140 515 142 830
*R4,5 million of this amount is rolled on a short-term notice period with
interest paid monthly.
Summarised Consolidated Statement of Changes in Equity
Shareholders' funds at
47 190 beginning of year 49 234 47 190
Changes in distributable
2 044 reserves 21 1 299
49 234 Shareholders' funds at end of year 49 255 48 489
Summarised Consolidated Cash Flow Statement
Year ended Six months ended
30 September 31 March
2000 2001 2000
R000 R000 R000
6 531 Cash flow from operating activities 3 849 5 292
(5 862) Cash flow used in investing activities (2 868) (2 520)
(2 769) Cash flow used in financing activities (1 525) (1 560)
(2 100) (Decrease)/increase in cash and
cash equivalents (544) 1 212
(10 303) Cash and cash equivalents at beginning
of year (12 403) (10 303)
(12 403) Cash and cash equivalents at end
of year (12 947) (9 091)
Review of results
Revenue increased by 15%, mainly attributable to price increases. Upward
volatility in raw material prices could not be totally recovered due to
extreme competitive conditions, which resulted in a significant decrease in
operating margins.
Seasonal demand in the construction and agricultural markets was
substantially lower than the available industry capacity resulting in under
utilisation of manufacturing capacity, leading to increased competitor
activity and lower margins.
The decline in net disposable income due to adverse economic conditions,
coupled with increased gambling and cellphone expenditure caused consumer
spending to decline steeply. This had a very negative impact on the
packaging industry.
Regional instability, particularly in Zimbabwe forced trading to be ceased
forthwith which further impacted negatively on the volume demand of
agricultural products.
All the above contributed to disappointing results.
Accounting policies
The accounting policies of the group are consistent with those applied in
the most recent annual financial statements and with South African
Statements of Generally Accepted Accounting Practice.
Prospects
More spending was approved on research and development of new generation
competitively priced value added products. Overlapping plant capabilities
are being eliminated and a total plant and product rationalisation is
currently being investigated and implemented. Cost reductions will take
place as well as greater emphasis on asset management. Costs relating to
these processes will be borne during the second half of the current
financial period. These actions should culminate in improved profitability
during the next financial year.
STRATE
In accordance with the new listing requirements of the JSE Securities
Exchange of South Africa, the company went onto the STRATE (Share
Transactions Totally Electronic) system with effect from
30 April 2001. A circular in this regard was posted to shareholders on 26
March 2001.
Cautionary announcement
The boards of directors of the Winbel Group, which includes Winbel Limited,
Winhold Limited, Gundle Limited and Inmins Limited, have for some time been
considering proposals to unbundle/restructure the Winbel Group in order to:
(1) simplify the group structure;
(2) effect a reduction in the significant costs associated with maintaining
multiple listings; and
(3) fall in line with the JSE guidelines on pyramid company structures.
In addition, it is expected that the proposed restructure will enhance the
liquidity in trading in the shares of the Winbel Group.
The directors have now decided to proceed with the implementation thereof.
Accordingly, shareholders are advised to exercise caution in dealing in
their shares.
Shareholders will be notified shortly of the intended processes.
On behalf of the board
WAR Wenteler CJ Pallas
Chairman Group Chief Executive Officer
13 June 2001
Directors
WAR Wenteler (Chairman), CJ Pallas (Group Chief Executive Officer),
DG Clarke#, W Fourie, PJ Kruger#, M Zbinden*
(#Non-executive) (*Swiss)
E-mail: winbel@pixie.co.za
Company secretaries and registered office
Winhold Limited (Registration number 1945/019679/06)
Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
E-mail: winsec@pop.co.za
Transfer secretaries
Mercantile Registrars Limited
8th Floor, 11 Diagonal Street, Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
E-mail: it@registrars.co.za
