| Wed 13 Jun 2001, 0:00 | | Winhold Limited - Financial Report |
|
WINHOLD LIMITED
(Registration number 1945/019679/06)
(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
515 153 Revenue 281 864 239 499
17 995 Operating profit 8 540 7 836
(528) Goodwill amortised (366) (356)
(7 187) Net finance costs (3 088) (2 935)
4 165 Exceptional items - -
14 445 Net profit 5 086 4 545
(1 165) Taxation (903) (393)
13 280 Profit after taxation 4 183 4 152
Attributable to:
(5 915) - outside shareholders (1 950) (1 814)
7 365 Net shareholders' profit 2 233 2 338
5 125 Headline earnings 2 373 2 518
Headline earnings per ordinary
7,8 share (cents) 3,6 3,8
Earnings per ordinary
10,9 share (cents) 3,4 3,5
Net asset value per
78,6 ordinary share (cents) 82,0 73,2
65 943 Ordinary shares in issue (000's) 65 943 65 943
Dividend per ordinary
1,9 share (cents) - -
Reconciliation of headline earnings
7 365 Shareholders' profit 2 233 2 338
Exceptional items profit on redemption of
(4 165) convertible debentures - -
- minority share of profit
2 003 on redemption - -
528 Amortisation of goodwill 366 356
Minority share of goodwill
(426) amortisation (226) (176)
(180) Preference dividend - -
5 125 2 373 2 518
Supplementary information
3 175 Capital commitments 2 499 -
7 724 Capital expenditure 4 217 3 556
8 409 Depreciation 4 611 4 159
39 875 Interest bearing borrowings 48 117 40 826
6 508 Interest earning deposits 2 866 7 590
Summarised Consolidated Balance Sheet
Year ended Six months ended
30 September 31 March
2000 2001 2000
R000 R000 R000
Assets
Fixed and other
73 080 non-current assets 72 520 75 154
1 399 Deferred taxation 2 225 -
166 511 Current assets 179 800 161 108
240 990 Total assets 254 545 236 262
Equity and liabilities
Ordinary share capital
59 437 and premium 59 437 59 437
Preference share capital
2 000 and premium 2 000 2 000
17 838 Non-distributable reserves 17 838 17 838
(25 416) Accumulated deficit (23 183) (29 010)
53 859 Shareholders' interest 56 092 50 265
- Convertible debentures - 10 227
36 975 Outside shareholders' interest 38 757 35 223
90 834 Total equity 94 849 95 715
Non-current liabilities
16 166 - interest bearing 14 006 17 770
910 - interest free 860 860
1 443 Deferred taxation 1 551 1 218
Current liabilities
23 709 - interest bearing 34 110 22 946
107 928 - interest free 109 169 97 753
240 990 Total equity and liabilities 254 545 236 262
Summarised Consolidated Statement of Changes in Equity
Shareholders' funds at
47 927 beginning of year 53 859 47 927
Changes in non-
- distributable reserves - -
7 365 Changes in accumulated deficit 2 233 2 338
(180) Preference dividend declared - -
(1 253) Ordinary dividend declared - -
53 859 Shareholders' funds at end of year 56 092 50 265
Summarised Consolidated Cash Flow Statement
Cash flow (used in)/
17 695 from operating activities (8 670) 8 607
Cash flow used in
(7 822) investing activities (3 880) (3 440)
Cash flow used in
(8 663) financing activities (1 447) (2 343)
Net (decrease)/increase in
1 210 cash and cash equivalents (13 997) 2 824
Cash and cash equivalents at
(7 582) beginning of period (6 372) (7 582)
Cash and cash equivalents
(6 372) at end of period (20 369) (4 758)
Review of results
Revenue increased by 17,7% and operating profit by 9,0%. Profit after
taxation remained basically unchanged in comparison to the corresponding
period of the previous financial year. Net asset value per share increased
to 82,0 cents.
The Inmins subsidiary results were very rewarding and it produced its best
ever half year results.
The Gundle subsidiary results were disappointing as severe market
deterioration took its toll on the financial results. Certain divisions in
Gundle produced satisfactorily profits which were unfortunately offset by
losses in the underperforming divisions.
Inmins
Best ever results were achieved for the first six months of the financial
year. Revenue increased by 19%, operating profit increased by 55% and
headline earnings per share increased by 47%.
The value added division, as well as the trading branches who both deal in
the mining industry, continued to do well in an extremely competitive
environment. Low cost structures and excellent service levels produced
excellent results.
In the industrial division certain promising improvements were obtained.
However, the Natal and Western Cape regions continued to operate under very
depressed conditions. Corrective actions have been implemented.
Gundle
Revenue increased by 15%, mainly attributable to price increases. Upward
volatility in raw material prices could not be totally recovered due to
extremely high competitive conditions, which resulted in a significant
decrease in operating margin.
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,
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.
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.
Post-balance sheet event
Subsequent to the reporting period the company acquired 19,9% of its 9%
convertible redeemable preference shares, in terms of a general authority
for the repurchase of its shares. An announcement in this regard was
published in the press on 14 May 2001.
Accounting policies
The accounting policies of the group are consistent with those applied in
the most recent annaul financial statements and with South African
Statements of Generally Accepted Accounting Practice.
Dividends
In line with group policy, no interim dividends have been declared.
Prospects
Inmins profitability should continue during the second half of the financial
year unless economic conditions deteriorate dramatically. No major
improvements are expected on a short term basis in Gundle, but all the
corrective actions should contribute positively during the next financial
period.
STRATE
In accordance with the new listing requirements of the JSE Securities
Exchange of South Africa, the company will convert to the STRATE (Share
Transactions Totally Electronic) system with effect from 9 July 2001. A
circular in this regard was posted to shareholders on 4 June 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 JH Henderson
Chairman Non-executive Director
13 June 2001
Directors
WAR Wenteler (Chairman), W Fourie, JH Henderson*
PJ Kruger (*Non-executive)
E-mail: winbel@pixie.co.za
Company secretary and registered office
DJ de Villiers
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
