| Fri 17 Aug 2001, 0:00 | | Cementation: Interim Report For The Six Months End |
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THE CEMENTATION COMPANY (AFRICA) LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1926/008840/06)
("the company" or "the Group")
Interim report for the six months ended 30 june 2001
Turnover 28%
NAV 31%
Operating Results 372%
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
six months six months Year to
to 30 June to 30 June 31
December
2001 2000 2000
R'000 R'000 R'000
Turnover 381 081 296 973 671 005
Mining and construction 380 442 274 544 626 849
Property 639 - 415
Discontinued operations - 22 429 43 741
Cost of sales 357 396 276 782 622 883
Mining and construction 357 396 260 454 588 838
Property - - -
Discontinued operations - 16 328 34 045
Gross profit for period 23 685 20 191 48 122
Mining and construction 23 046 14 090 38 011
Property 639 - 415
Discontinued operations - 6 101 9 696
Other operating (expense)/income 231 2 161 (744)
Mining and construction 315 1 912 1 491
Property (84) 96 -
Discontinued operations - 153 (2 235)
Admistrative expenses (10 784) (19 571) (39 341)
Mining and construction (8 241) (7 521) (16 185)
Property (1 072) (701) (2 087)
Discontinued operations (1 471) (11 349) (21 069)
Results from operating activities 13 132 2 781 8 037
Mining and construction 15 120 8 481 23 317
Property (517) (605) (1 672)
Discontinued operations (1 471) (5 095) (13 608)
Net financing costs 29 (441) (856)
Profit before exceptional items 13 161 2 340 7 181
Exceptional items - - (4 392)
Profit before tax 13 161 2 340 2 789
Income tax expense (1 734) (87) (121)
Net profit for period 11 427 2 253 2 668
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Pref share Non- Accu-
Ordinary Preference arrear distri- mulated
share share dividends share butable profit/
capital premium and STC premium reserves (loss)Total
R'000 R'000 R'000 R'000 R'000 R'000
R'000
Balance at
30 June 2000 4 476 5 300 3 058 30 600 8 100 (7 889) 43 645
Conversion of
preference shares 2 (2)
Deficit on
revaluation of
properties (5 380) (5 380)
Net profit
for period 415 415
Arising on
consolidation 436 (296) 140
Transfer from
income statement 84 (84)
Arrear dividends
and STC provided 1 529 (1 529)
Balance at
31 December 2000 4 478 5 298 4 587 30 600 3 240 (9 383) 38 820
Net profit
for period 11 427 11 427
Arrear dividends
and STC provided 1 529 (1 529)
Arrear dividends
and STC provided 1 529 (1 529)
Balance at
30 June 2001 4 478 5 298 - 30 600 3 240 515 44 132
CONSOLIDATED BALANCE SHEET
30 June 30 June 31
December
2001 2000 2000
R'000 R'000 R'000
ASSETS
Non-current assets 57 002 48 113 44 253
Tangible assets 56 893 48 005 44 144
Other financial assets 109 108 109
Current assets 157 925 127 609 160 098
Inventories 35 301 19 815 25 705
Trade and other receivables 115 538 100 629 81 530
Cash and cash equivalents 7 086 7 165 52 863
Total assets 214 927 75 722 204 351
EQUITY AND LIABILITIES
Capital and reserves 44 131 43 645 38 820
Ordinary share capital and
premium 11 328 11 318 11 328
Cumulative preference share
capital and premium 29 048 29 058 29 048
Accumulated arrear dividends
and STC - 3 058 4 587
Non-distributable reserves 3 240 8 100 3 240
Accumulated profits/(losses) 515 (7 889) (9 383)
Non-current liabilities 4 210 8 290 6 353
Interest bearing borrowings 3 904 8 063 6 047
Other financial liabilities 306 227 306
Current liabilities 166 586 123 787 159 178
Trade and other payable 146 935 112 781 143 017
Operating overdrafts 4 152 6 061 4 570
Dividends payable 5 436 - -
Provisions 10 063 4 945 11 591
Total equity and liabilities 214 927 175 722 204 351
CONSOLIDATED CASH FLOW STATEMENT
Cash flows from operating activities (20 793) (14 843) 43 193
Cash flows from investing activities (22 423) (4 573) (13 404)
Cash flows from financing activities (2 143) (2 329) (4 345)
Net change in cash and cash
equivalents (45 359) (21 745) 25 444
Cash and cash equivalents at
beginning
of period 48 293 22 849 22 849
Cash and cash equivalents at
end of period 2 934 1 104 48 293
Number of ordinary shares
in issue - '000 8 955 8 952 8 955
Net asset value per
ordinary share - cents 168,4 128,8 57,9
Attributable profit/(loss)
per ordinary share
(after notional preference
dividends) - cents 110,5 10,0 (0,6)
Headline earnings per ordinary share
(after notional preference
dividends) - cents 110,5 8,1 44,7
Dividends per ordinary share
- no dividend was declared
Capital expenditure 23 074 5 623 21 118
Depreciation 9 674 6 448 11 597
Capital expenditure committed or
authorised 6 709 2 910 2 197
COMMENT
Group results
Results continue to show improvement following the disposal of the Group's
loss making engineering businesses and management focus on the core
expertise in the Mining Sector. The directors are pleased to report a Group
pre-tax profit of R13,2 million against R2,3 million in the comparative
period last year. This was achieved through the removal of loss makers,
overhead cost savings and increasing turnover in Mining. Strengthened
margins gave an improved operating result for Mining and Construction of
R15,1 million (2000 - R8,5 million).
The continuing losses in the property business stream, caused by holding
costs of vacant properties, is likely to continue in the short term although
management is acting to defray these costs with rental income wherever
possible. Prospects of disposing of these properties are reasonable, with
management actively pursuing this option.
Administration expenses shown in discontinued operations are costs
incurred in the current year leading up to and following the disposal of the
engineering operations at the end of the first quarter. At the date of this
report, no further costs are envisaged.
Prospects
A record order book of R688 million at the end of June, includes a new
contract for the Konkola Mine in Zambia. While concentrating on the local
platinum market, now the major source of work for the Group, management will
continue to seek alternative markets, locally and internationally. In line
with the improved results for the year and increased workload, the company
has seen substantial capital expenditure over the past six months. This is
reflected in the Group's cash outflow, with a net R22 million invested in
capital over the period. This outflow should be recovered in the medium term
although the requirement for capital investment will continue in the future
in line with the Group's growth.
Prospects for the future are positive, with management expecting to
maintain returns for the remainder of the year.
Preference dividends
Notice is hereby given that the board has declared the following preference
dividends to be paid on Monday, 17 September 2001.
Listed shares
Arrear dividend numbers 57, 58 and 59, each of 6 cents per 6% cumulative
preference share, for the periods ended 31 December 1999, 30 June 2000 and
31 December 2000 respectively. Dividend number 60 of 6 cents per 6%
cumulative preference share for the period ended 30 June 2001.
To comply with the procedures of STRATE, the last day to trade in the
shares for purposes of the arrear and current dividends is Friday, 7
September 2001. The shares will commence trading ex dividend from Monday,
10 September 2001 and the record date will be Friday, 14 September 2001.
Certificated shareholders may not dematerialise their shares between
Friday, 31 August 2001 and Friday, 14 September 2001 inclusive.
Unlisted shares
Arrear dividend numbers 3, 4 and 5, each of 13,5 cents per 9% convertible
redeemable cumulative preference share, for the periods ended 31 December
1999, 30 June 2000 and 31 December 2001 respectively. Dividend number 6 of
13,5 cents per 9% convertible redeemable cumulative preference share for the
period ended 30 June 2001.
All of the preference shares were granted voting rights at general
meetings of the company as a result of the arrear dividends. This payment
will have the effect of returning these shares to non-voting status.
Ordinary dividends
The directors have agreed to pass the declaration of an ordinary dividend
until such time as the company has rebuilt reserves to support the capital
needs of the group.
DIRECTORATE
Mr S Keeble has been appointed as Chairman of the board. The outgoing
Chairman, Mr B R van Rooyen, remains on the board as a non-executive
director. Mr R A Wallace has resigned as a non-executive director and Mr D G
Fison, an executive of Skanska, has been appointed to the board with effect
7 August 2001.
The board, to ensure adequate representation of minority interests and in
the spirit of good Corporate Governance, is actively seeking to appoint a
further independent non-executive director.
For and on behalf of the board
Directors
S Keeble (Chairman)
A A B Douglas (Chief Executive Officer)
7 August 2001.
