| Wed 13 Jun 2001, 0:00 | | Argent Industrial Limited - Final Audited Results |
|
MARCH 2001
Reg no 1993/002054/06
Final Audited Results
for the year ended 31 March 2001
REVENUE UP 33%
OPERATING INCOME UP 32%
HEADLINE EARNINGS PER SHARE UP 19%
Abridged Consolidated
Balance Sheet Audited at Audited at
as at 31 March 2001 31 March 31 March
2001 2000
R000
ASSETS
Non-current assets
Property, plant and equipment 97 434 96 723
Intangibles 675 750
Employee share incentive scheme 987 0
99 096 97 473
Current assets
Inventories 45 025 36 975
Trade and other receivables 57 897 52 251
Taxation 67 0
Bank balance and cash 358 0
103 347 89 226
Total assets 202 443 186 699
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 3 023 1 966
Reserves 113 666 106 832
Ordinary shareholders' funds 116 689 108 798
Minority interest 5 325 4 662
Total shareholders' funds 122 014 113 460
Non -current liabilities
Long-term borrowings 18 856 21 344
Deferred taxation 3 550 2 021
22 406 23 365
Current liabilities
Trade and other payables 48 961 42 539
Taxation 0 1 105
Shareholders for dividends 2 429 786
Bank overdraft 0 404
Current portion of long-term
borrowings 6 633 5 040
58 023 49 874
Total equity and liabilities 202 443 186 699
Net asset value per share (cents) 288,2 276,8
Statement of Changes in Equity for the year ended 31 March 2001
Share Share Accum- Revalu- Total
capital Premium ulated ation
Profit Reserve
R000
Balance at
31 March 1999 1 966 0 66 279 35 093 103 338
Reversal of
revaluation of
properties (3 826) (3 826)
Net profit for the
year ended
31 March 2000 14 003 14 003
Dividends (4 717) (4 717)
Balance at
31 March 2000 1 966 0 75 565 31 267 108 798
Shares issued 58 999 1 057
Reversal of
revaluation of
properties (5 254) (5 254)
Net profit for the
year ended
31 March 2001 16 946 16 946
Dividends (4 858) (4 858)
Balance at
31 March 2001 2 024 999 87 653 26 013 116 689
Abridged Consolidated Audited Audited
Income Statement year ended year ended
for the year ended 31 March 31 March
31 March 2001 2001 2000
R000
Revenue 283 221 213 575
Operating profit before finance
charges 26 049 19 666
Net finance charges 5 463 4 816
Net profit before taxation 20 586 14 850
Taxation 2 977 665
Net profit after taxation 17 609 14 185
Earnings attributable to outside
shareholders 663 182
Earnings attributable to ordinary
shareholders 16 946 14 003
Attributable earnings per share
(cents) 42,7 35,6
Headline earnings per share (cents) 44,9 37,8
Dividends per share (cents) 12,0 12,0
Shares in issue (000)
- at end of period 40 486 39 311
- weighted average for the year 39 703 39 311
Calculation of Headline Earnings (R000)
Attributable earnings 16 946 14 003
Adjustments for:
Profit on disposal of property,
plant and equipment (850) 0
Profit on sale of subsidiary (57) 0
Relocation of subsidiary 0 165
Retrenchment of staff 0 431
Loss on disposal of property,
plant and equipment 1 789 260
Headline adjustments 882 856
Headline earnings 17 828 14 859
Abridged Consolidated Audited Audited
Cash Flow Statement Year ended Year ended
for the year ended 31 March 2001 31 March 31 March
R000
Cash generated from operations 14 449 25 384
Interest paid (8 670) (7 663)
Interest received 3 207 2 847
Dividends paid (3 215) (7 862)
Taxation paid (2 621) (628)
Cash flows from operating activities 3 150 12 078
Cash flows from investing activities (2 549) (18 235)
Cash flows from financing activities 161 (495)
Net increase/(decrease) in
cash and cash equivalents 762 (6 652)
Cash and cash equivalents at
beginning of year (404) 6 248
Cash and cash equivalents at
end of year 358 (404)
COMMENTRY
The period under review demonstrates the successful implementation of
Argent's strategy to build a group of operations which each support the
Group's businesses and are able to compete successfully in the external
market place. With a more than satisfactory order book for the coming year
the Group will continue to strive to deliver outstanding shareholders value.
Salient features of the results
- Attributable earnings increased by 21% to R16,9 million
for the period under review (2000 - R14 million)
- Headline earnings per share increased by 19% to 44,9
cents per share over the same period (2000 - 37,8 cents)
- Return on Shareholders equity increased to 14,5% (2000 -
12,9%)
- Group gearing decreased to 20,9% (2000 - 23%)
OVERVIEW OF OPERATING ACTIVITIES
Steel and Steel Processing
The Phoenix Steel trading companies based in Gauteng and Kwa-Zulu Natal
increased their turnovers and maintained their margins for the period under
review. Phoenix Steel Natal's satellite operation in Empangeni has proved to
be a good decision as it has started to show favourable returns. Joules
Decoiling and Slitting, which operates in the competitive cold rolled
market, has had a difficult year, but did however maintain its levels of
turnover. Koch's Cut and Supply Steel Centre has had another successful
year. The company has plans to expand its operation by opening a satellite
division in Richards Bay.
Fabrication
Hendor Mining enjoyed yet another good year, maintaining both its margins
and its market share. Bavarian Metal Industries has started to show promise.
The company is now fully diversified into both fabrication and profiling and
will contribute profitably to the 2002 financial year.
Precision Engineering
Giflo Engineering completed a successful financial year with their turnover,
well above our expectations. Giflo Engineering via New Joules North America
Inc. has secured a sole supply agreement with Lund Industries to supply
various models of stainless steel bug shields. A great deal of time and
money has gone into tooling up for the product and we expect the product to
be in full swing by November 2001. The initial orders for the product has
already exceeded US$ 300 000. Giflo has now also started exporting its Land
Rover products directly to Brazil and the United Kingdom. The local markets
are at satisfactory levels and we have recently added Delta Motor
Corporation to our client base.
Argent currently owns 62% of Giflo Engineering and is in the process of
purchasing an additional 15% share. Full details will be disclosed in the
Annual Financial Statements.
New Joules Engineering North America Inc. has had a satisfactory financial
year and it will continue to maintain its performance in the forth-coming
year. NWN Automotive Precision Engineering had a great start to the 2001
financial year. The move from Ladysmith has finally paid off and the Group
can look forward to a positive contribution from NWN in the next financial
year.
Concrete and Stone
The rationalisation of the two companies Megamix and Villiersdorp Quarries
into Megamix has resulted in dramatically reducing the overheads, which has
given the combined company a competitive edge. Megamix has built up a
reputation in the Western Cape for top quality and service excellence and
has a more than reasonable order book for the coming year.
Materials Handling and Project Management
The wheel of the economy has turned in favour of Barker Flynn Associates,
the company secured a R49 million contract from Kusasa Bulk Terminals for
the project management and construction of the IHM bulk export terminal in
Richards Bay. The project will be completed by August 2001.
In addition Barker Flynn Associates are working on various materials
handling projects for Avmin, Bevcan, Sasol and Belgotex carpets. Barker
Flynn has a number of tenders in the market place both locally and in Africa
and its current order book level should double its turnover in the 2002
financial year.
Prospects
The focus on exports will continue. We believe our businesses are properly
geared to deliver return on shareholders equity and growth. We believe that
the Group has the right people focusing on customer and shareholders value.
The Group faces the future with confidence.
Dividend
A final dividend of 6 cents per share has been declared, payable on Friday 3
August 2001 to shareholders registered as such at close of business on
Friday 20 July 2001, being the record date in order to participate in such
dividend.
The last day to trade cum div is Friday 13 July 2001. The share will trade
ex div on Monday 16 July 2001.
On behalf of the board
T.R. HENDRY CA(SA)
Managing Director
Germiston
14 June 2001
Registered Address:
13 Jack Pienaar Street
Germiston South
Extension 7
Germiston
1411
Tel: (011) 873-1149
(PO Box 14461, Wadeville 1422)
Auditor:
Etchells James Kruger & Associates Inc.
Attorney:
Rossouws
Attorneys,
Notaries and Conveyancers
Sponsor:
LPC Manhattan
LPC Manhattan Sponsors (Pty) Ltd
(Registration number 1999/024792/07)
Transfer Secretary:
Ultra Registrars
Ground Floor
11 Diagonal Street
Johannesburg, 2001
(PO Box 4844, Johannesburg 2000)
Directors:
T. Scharrighuisen (Chairman)
T.R. Hendry (Managing)
M.J. Antonic (Financial)
P.A. Day
ARGENT PRESS RELEASE
Argent - Faces the Future with Confidence
The results presented for the 2001 financial year are a good example of a
hands-on operation says Treve Hendry, the Managing Director, of Argent
Industrial Limited. Earnings are up by 21% and headline earnings increased
by 19% to 44.9 cents per share. Return on shareholders' equity increased to
14.5%. The group gearing decreased to 20.9%.
The secret to Argent's success is simple. It's aversion to debt, its pared
down management structure, a strong emphasis on companies in the group
supporting each other and quick decision making. We manage our businesses
without being over technical. We are not into using outside consultants and
know it alls; we work too hard for our money to throw it away. Our managers
and directors are 100% hands on on both the workshop floor and the books of
account.
The group is predominately a steel merchant with steel making up 40% of the
Group's turnover. The next 35% consists of companies adding value to either
steel via manufacturing or steel service centres. The balance of the Group
is made up of Project Management, Diesel Engine Rebuilding and Ready mix
concrete. The Group's activities are based in Gauteng, Northern Province,
Western Cape, Natal and America.
We see the Group growing in a number of areas. The Project Management
company, Barker Flynn Associates is sitting with orders in excess of R65
million, part of this is steel structure related which will in turn grow our
steel fabrication and steel merchant companies. Giflo Engineering, the pipe
manipulation company has an export contract to America, an area that with a
continuously devaluing rand we can only expand.
The Group's gearing ratio is one of the lowest on the JSE. The low gearing
ratio protects the Group from the effects of sudden changes in the local
interest rates. The local investor market, disinterested in small cap
industrial companies, has negatively affected the Group's share price. We
hope that this will change, it is not in our hands, and all we can do is
endeavour to provide the investor a good return on his or her investment.
- ends-
For further information contact the Managing Director, Mr Treve Hendry on
082 900-4679
