| Tue 31 Jul 2001, 0:00 | | Bridgestone Firestone Maxiprest Ltd - Interim Resu |
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Bridgestone Firestone Maxiprest Limited is Southern Africa's predominant
retreader, multi-brand new tyre distributor and tyre management service
provider. Through its wholly owned subsidiaries, Maxiprest Tyres (passenger,
truck, bus and agricultural markets) and Quality Tyres (mining and
earthmover), the Group's current footprint comprises 93 branches and 20
retread factories across the sub-continent - also enabling it's 24 hour
transporter tyre breakdown service.
The world's leading new tyre and rubber manufacturer, Bridgestone
Corporation (Japan), holds a strategic 53% stake in the Group via its local
subsidiary Bridgestone Firestone South Africa Holdings (Pty) Ltd - with the
balance of the shareholding being held by management and the investing
public alike.
OPERATIONAL PERFORMANCE
Reflecting the Group's commitment to `creating and enhancing value for all
its stakeholders', the first 6 months trading results outperform both the
general economy and the industry.
Competitive pricing, in domestic and export markets, continues to pressurize
manufacturer input costs, while transporters and the earthmoving and mining
operators endeavor to maintain, if not reduce operational costs.
Negative trading and economic conditions aside, Group turnover increased by
8.8% to R576million (2000: R529.5million). Headline earnings increased by
12.2% from R25.8 million to R29million, while at R28.3million (2000: R24.6
million) attributable earnings were 14.6% up, reflecting the benefits of
management's focus on cost reduction amongst a number of performance-
enhancing priorities.
The dividend received of R0.8million (2000: Nil) is the cash dividend from
the Group's 57% stake in the unconsolidated Zimbabwe subsidiary. As in the
past, management continue to deem it prudent not to consolidate Zimbabwean
and Zambian earnings due to restraints on the remittability of funds, and to
account for earnings on a cash dividend received basis. It is anticipated
that a similar cash dividend will be forthcoming in the latter half of the
year.
THE OUTLOOK
Developing the Sub-Saharan export markets remains a Group priority, whilst
increasing the domestic footprint will enhance market penetration for the
premium branded Bridgestone and Firestone truck, bus and OTR (off-the-road)
new tyres and the Maxiprest Compressed Tread bus, truck and OTR retreads.
Specialist OTR subsidiary, Quality Tyres, continues to make inroads into the
mining arena with significant supply contracts awarded during the review
period. Contributions from, in the main, contracts of a three - year
duration, will be realised in the next review period, and in 2002 and
beyond.
Domestically, growth in the passenger, truck, bus and OTR markets is
envisaged through strategic acquisitions and alliances in line with the
Group's intention to dominate distribution. Current developments will impact
positively on contributions in the second half and continue thereafter.
Management remains confident that the technical and logistical support from
Bridgestone, combined with the focused provision of tyre management services
to the transport, mining and earthmover industries in Southern Africa, will
continue to achieve consistent earnings growth.
ON BEHALF OF THE BOARD
Joint Managing Directors: M. E. DAVISON ~ C. E. BROWN: 30 July 2001
DIVIDEND DECLARATION
Notice is hereby given that an interim dividend of 5 cents per share has
been declared in respect of dividend no.8 for the 6 (six) months ended June
2001.
Shareholders are advised that the last day to trade cum dividend will be
Friday, 10th August 2001. The shares will trade ex dividend as of Monday,
13th August 2001. The record date will be Friday 17th August 2001 and the
dividend will be payable on Friday, 7th September 2001.
BY ORDER OF THE BOARD
GM Sinclair CA (SA) Company Secretary: 30 July 2001
BALANCE SHEETJune 30, 2001 Actual
Actual Actual Unaudited Unaudited
Audited 30 Jun 2001 30 Jun 2000 31 Dec
2000 R '000 R '000 R
'000ASSETSNon-current assetsProperty, plant and equipment 110 512
111 229 111 997Goodwill 6 345 6
676 7 633Investment in associates 728 2 424
728Unconsolidated subsidiaries 17 857 17 857 17
857Long term loan receivable 0 2 908
0Share incentive scheme 10 166 8 236 8 591
145 608 149 330 146 806Current assetsInventory
116 750 93 892 85 552Accounts receivable 223
062 234 981 253 508Cash at bank 23 883
59 862 33 792 363 695 388 735
372 852TOTAL ASSETS 509 303 538 065 519
658EQUITY AND LIABILITIESCapital and reservesShare capital and premium
130 487 130 487 130 487Accumulated profits 145
596 113 195 125 241Shareholders for dividend 7 910
7 910 7 910 283 993 251 592
263 638Outside shareholders interest 0 1 623
0Long term liabilities 1 035 21 253 1
035Current liabilitiesAccounts payable 210 159 246
381 233 647Short term portion oflong term liabilities
1 179 3 611 3 157Taxation payable 12 937
13 605 18 181 224 275 263 597
254 985TOTAL EQUITY AND LIABILITIES 509 303 538 065 519
658Net asset value (cents) 180 159 167
CASH FLOWJune 30, 2001 Actual
Actual Actual Unaudited
Unaudited Audited 6 months
6 months Year 30 Jun 2001 30
Jun 2000 31 Dec 2000 R '000
R '000 R '000Net cash flows from operating activities -1 717
43 606 34 025Net cash flows from investing activities -6 214 -
10 369 -17 979Net cash flows from financing activities -1 978
3 702 -5 178Net (decrease) increase in cash -9 909 36
939 10 868Cash & cash equivalents at beginning
of year 33 792 24 578 24
578Cash & cash equivalents deconsolidated 0 -1 654 -1
654Cash at end of year 23 883 59 863 33
792
INCOME STATEMENT June 30, 2001 Actual
Actual Actual Unaudited
Unaudited Audited 6 months
6 months Year
30 Jun 2001 30 Jun 2000 31 Dec 2000
R '000 R '000 R '000Revenue
575 977 8.8 529 511 1 018 777Gross profit
154 803 151 189 304 442Operating incomeOperating income
before financingcost and exceptional items 40 280 10.4 36
470 63 672Exceptional items -734 -1
171 -1 484Dividend received 807
0 0Profit from operations 40 353 35 299
62 188Net finance cost -1 185 -187
-656Interest received 1 529 1 463 4
129Interest paid -2 714 -1 650 -4
785Profit before tax 39 168 35 112 61
532Income tax expense -10 903 -10 074 -16
775Profit after tax 28 265 25 038 44
757Share of retained earnings ofassociated companies 0
-113 211 28 265 24
925 44 968Attributable to outside shareholders 0 -
253 -340Profit for period 28 265 14.6 24
672 44 628Proposed dividend -7 910 -7
910 -15 820Profit retained for the period 20 355 16
762 28 808Accumulated profit at beginning
of period 125 241 96 433 96
433Accumulated profit at end of period 145 596
113 195 125 241Shares in issue (million) 158.2
158.2 158.2Earnings per share (cents) 17.9 14.7
15.6 28.2Headline earningsProfit for the period 28 265
24 672 44 628Exceptional items 734 1
171 1 484 28 999 25 843
46 112Headline earnings per share (cents) 18.3 12.2 16.3
29.1Depreciation (Rm) 6.7 6.0
46.5Capital Expernditure (Rm) 6.3 7.0
20.1Capital expenditure approved (Rm) 4.8 0.4
9.5
