| Fri 3 Aug 2001, 0:00 | | Marshalls Limited - Interim Report |
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(Registration number 1987/002656/06)
(Formerly Marshalls Controlling Investments Limited)
Interim report for the six months ended 30 June 2001
The unaudited results in respect of the six months ended 30 June 2001 for
Marshalls Limited and its subsidiaries are as follows:
INCOME STATEMENT
Six months ended Year ended
30.06.2001 30.06.2000 31.12.2000
R R R
Confirming fees, interest
and dividends received 792 000 929 000 1 798 503
Rental income 8 319 000 8 227 000 16 436 379
Revenue 9 111 000 9 156 000 18 234 882
Profit before interest and taxation 4 039 000 3 595 000 7 247 043
Interest received 518 000 354 000 204 103
Interest paid (1 658 000) (787 000) (1 871 788)
Loss from associate - (49 000) (89 232)
Profit before taxation 2 899 000 3 113 000 5 490 126
Taxation 857 000 1 092 000 2 277 048
Profit for the period 2 042 000 2 021 000 3 213 078
Earnings per share (cents) 11,8 11,8 18,6
Headline earnings per share (cents) 11,8 11,8 19,0
Dividends proposed per share (cents) 6,0 9,0 20,0
Dividend cover (times) 2,0 1,3 0,9
Shares in issue 17 372 300 17 372 300 17 372 3000
Net asset value per share (cents) 445 451 444
ABRIDGED BALANCE SHEET
Property, plant and equipment 75 297 000 81 699 000 74 467 879
Investments and loans receivable 20 339 000 5 114 000 20 982 688
Current assets 5 985 000 8 669 000 4 100 329
Cash 4 601 000 2 231 000 3 956 339
Total Assets 106 222 000 97 713 000 103 507 235
Equity and reserves 77 222 000 78 325 000 77 080 532
Interest bearing borrowings 20 807 000 10 914 000 20 807 262
Deferred taxation 194 000 325 000 193 744
Current liabilities 5 407 000 7 696 000 4 394 500
Bank overdraft 2 592 000 453 000 1 031 197
Total Equity and Liabilities 106 222 000 97 713 000 103 507 235
STATEMENT OF CHANGES IN EQUITY
Share capital and share premium 26 809 000 26 809 000 26 809 026
Non-distributable Reserves 44 663 000 47 090 000 44 653 071
- Balance at beginning of year 44 653 000 47 082 000 49 914 053
- Property revaluation movement - - (3 309 122)
- Realisation of investment movement - - (2 831 619)
- Currency translation movement 10 000 8 000 879 759
Distributable Reserves 5 750 000 4 426 000 5 618 435
- Balance at beginning of year 5 618 000 4 143 000 5 706 094
- Profit for the year 2 042 000 2 021 000 3 213 078
- Dividends declared (1 910 000) (1 738 000) (3 300 737)
Equity and Reserves at end of year 77 222 000 78 325 000 77 080 532
SUMMARISED CASH FLOW STATEMENT
Cash generated from
operating activities 5 262 000 6 753 000 12 286 678
Interest and taxation paid (3 502 000) (2 868 000) (4 096 864)
Operating cash flow 1 760 000 3 885 000 7 985 711
Dividends paid (1 909 000) (1 737 000) (3 300 737)
Cash retained in operating
activities (149 000) 2 148 000 4 889 077
Net investment activities (767 000) 1 691 000 (3 285 627)
Net cash generated/(utilised) (916 000) 457 000 1 603 450
COMMENTS
The unaudited results for the six months ended 30 June 2001 reflect profit,
before interest and taxation, of R4 039 000 (2000: R3 595 000).
Certain of the group's accounting policies have been amended to harmonise
South African Statements of Generally Accepted Accounting Practice with
international standards. These amendments give rise to the following: (i)
the provision for loss against the Confirming facilities has been reversed
on a pro-rata basis amounting to R1 284 000 for the period under review,
(ii) dividends, both interim and final, will only be accounted for in the
reporting period in which they are declared, (iii) exceptional items have
been incorporated into profit before tax. The comparative figures have been
amended accordingly.
Whilst it is the group's policy to revalue its property portfolio and shares
in listed investments on an annual basis, this has not been done for interim
reporting purposes but will be done at the financial year-end.
Your group's policy on long-term investments was redirected last year with a
permanent investment in a R20 million portfolio of high quality listed
shares in the United Kingdom, the United States of America and Western
Europe. Such a portfolio, by international standards, will produce low
yields in hard currencies compared to high yields in rands obtainable from a
South African commercial property portfolio. As the benefits of this
investment will take some time to mature, your directors consider the
declaration of dividends must continue, for the present time, on a basis
consistent with profits and positive cash flows. Profits generated from the
group's property portfolio and confirming division for the six-month period
are approximately R700 000 lower than the previous comparable period.
Consequently, an interim dividend of 6,0 cents per share (2000: 9,0 cents)
has been declared and it is anticipated the final dividend for 2001 will
also be 6,0 cents per share (2000: 11,0 cents). Although this year's
dividends are being reduced, it is anticipated gradual increases in future
dividends will materialise.
At the company's Annual General Meeting on 29 May 2001, shareholders
unanimously approved the change of name of the company from Marshalls
Controlling Investments Limited to Marshalls Limited.
The Registered Office of the company moved to La Lucia Ridge Office Estate,
north of Durban, in July this year.
ON BEHALF OF THE BOARD
DC Marshall, PN Lonsdale (Directors)
DIVIDEND DECLARATION
Notice is hereby given that an interim dividend of 6,0 cents per share has
been declared in respect of the six months ended 30 June 2001.
In accordance with the settlement procedures of STRATE, Marshalls has
determined the last date to trade to participate in the interim dividend
shall be Friday, 10 August 2001. The shares will commence trading ex-
dividend from Monday, 13 August 2001, and the last day to register will be
Friday, 17 August 2001.
Dividend will be paid on Monday, 20 August 2001.
3 August 2001
BY ORDER OF THE BOARD
PN Lonsdale (Secretary)
Registered Office
11 Sunbury Park
La Lucia Ridge Office Estate
La Lucia 4051
Transfer Secretaries
Mercantile Registrars Limited
94 President Street
Johannesburg 2001
Directors: DC Marshall (Chairman), PN Lonsdale (Managing), JPA Maitre, ME
Stewart,
DC Vacy-Lyle
