| Tue 28 Aug 2001, 0:00 | | Gencor Limited - Consolidated Audited Results For |
|
2001
Incorporated in the Republic of South Africa
Registration number 1895/001232/06
Share code: GMF
ISIN code: ZAE000013066
CONSOLIDATED audited RESULTS for the year ended 30 June 2001
Income Statement
30 June 30 June
2001 2000
(Rm) Notes Audited Audited
Special dividend from Implats 918.2 -
Ordinary dividends from Implats 1 163.0 538.7
Dividends from unbundled investments - 29.7
Dividend income 1 2 081.2 568.4
Net interest income 27.1 23.7
Net corporate costs (16.2) (19.9)
Operating income 2 092.1 572.2
Other net income 90.6 3.8
Unbundling, delisting and
reconversion costs (1.6) (10.8)
Income before taxation 2 181.1 565.2
Taxation (8.0) (23.3)
Income after taxation 2 173.1 541.9
Net equity accounted income 2 66.1 505.3
Attributable income 2 239.2 1 047.2
Weighted average number of shares
in issue (m) 348.6 348.6
Earnings per share (cents) 3
Basic and diluted earnings 642 300
Headline earnings 617 302
Dividends per share (cents)
Special 264 -
Ordinary 333 163
Balance Sheet
Investment in Implats 2, 4 & 5 2 237.7 2 171.6
Other non-current assets 11.0 60.8
Current assets 1 094.4 662.4
Total assets 3 343.1 2 894.8
Capital and reserves 2 517.2 2 359.1
Current liabilities and provisions 825.9 535.7
Total equity and liabilities 3 343.1 2 894.8
Statement Of Changes In Equity
Opening balance 2 359.1 3 975.6
Amortisation of goodwill relating
to associate 5 - (324.8)
Total ordinary dividends for year (2 081.1) (568.2)
Dividends in specie - (1 770.7)
Attributable income 2 239.2 1 047.2
Total shareholders' equity 2 517.2 2 359.1
Cash Flow Statement
Operating cash flows 25.7 (23.5)
Dividends received 1 787.4 377.6
Dividends (paid) (1 802.2) (362.5)
Net cash from operating activities 10.9 (8.4)
Other activities 13.4 (12.2)
Repayment of loan to and surpluses
earned by Share Incentive Trust 125.0 79.5
Net increase in cash 149.3 58.9
Closing cash balance 360.2 210.9
Investments And Company Statistics
Market value of investment in
Implats (Rm) 12 346 7 719
Interest in Implats (%) 46.1 46.3
Number of Gencor shares in issue (m) 348.6 348.6
Gencor's ruling share price on the JSE
at year-end (cents) 3 380 1 950
Gencor's market capitalisation (Rm) 11 782 6 798
Gencor's discount to market value of
listed investments (%) 4.6 11.9
Net asset value per share (cents) 959 663
Notes To The Financial Statements
1. Dividends are recognised in the accounting period to which they relate.
2. Implats is equity accounted, whereas all other investments are cost
accounted.
3. The earnings per share calculations are based on attributable income.
Headline earnings per share exclude other net income and the unbundling,
delisting and reconversion costs.
4. Investments are recorded at book value and, where appropriate, include
post acquisition income and reserves.
5. During the year the group adopted AC131 "Business Combinations". With the
adoption of this statement, any excess or deficit of the purchase price over
the fair value of attributable assets of the associate at the date of
acquisition, which has previously been included in the carrying value of the
associate, is amortised over its anticipated useful life, limited to a
maximum of 25 years. This statement has been retrospectively applied.
6. The company has given certain limited warranties and an indemnity, for
five years and capped at an aggregate amount of US$220 million, to Billiton
Plc in relation to the businesses that were transferred to it in July 1997.
Gencor also has certain obligations relating to the closure of the Prima
Lirang gold mine in Indonesia that expire in 2002. The sale of various other
assets carry warranties and indemnities that should not exceed R10 million.
The directors do not anticipate any losses, additional commitments or claims
from these arrangements. There are no legal or arbitration proceedings
including any that are pending or that Gencor is aware of or any obligations
relating thereto, that have had or that may have, in the opinion of the
directors, a material effect on Gencor's financial position and accordingly
no contingencies or provisions have been raised therefor.
7. Where necessary, comparative figures have been adjusted to conform to
changes in presentation in the current year.
COMMENTARY
Results
Gencor's attributable income, at R2 239 million, is 114% higher than the R1
047 million reported last financial year. This increase in earnings is
primarily due to the high prices achieved for the metals produced and
marketed by Impala Platinum Holdings Limited ("Implats").
Dividend income from Gencor's investment in Implats comprises a special
dividend of R918 million and ordinary dividends of R1 163 million, in total
R2 081 million. The ordinary dividends received more than doubled the R568
million received in financial year 2000.
Net interest receipts amounted to R27 million compared to the R24 million
posted last year. Net corporate costs of R16 million were recorded for the
twelve-month period (R20 million in 2000). Other income of R91 million was
earned (2000: R4 million), comprising principally the surplus of R75 million
(2000: R6 million) in the Share Incentive Trust, mainly the disposal of
forfeited shares, a refund of R11 million RSC levies overpaid in prior years
and forfeited dividends received of R4 million arising as a result of the
adoption of the new Articles of Association changing the forfeiture period.
R2 million was incurred on delisting from the European exchanges and on
reconverting the bearer warrants, whereas last year the cost of the
unbundling totalled R11 million.
Implats
The year under review was witness to another superlative performance by
Implats as a result of the high average dollar prices achieved and the
weaker rand. Implats' attributable income of R4 647 million for the year was
consequently some 106% more than the R2 255 million earned last year. Aside
from the significant impact of the platinum group metal prices on the
contribution from Implats' 27% investment in the Lonmin platinum mines and
on secondary sourcing and tolling revenue, net interest receipts also added
to Implats' bottom line.
As a consequence of its outstanding results Implats raised its total
dividends to 3 800 cents per share (1 760 cents in financial year 2000). The
much higher cash flows experienced in 2001 and its robust financial
situation also enabled Implats to declare and pay a special dividend of
3 000 cents per ordinary share at the half-year.
Market Values
The R12.3 billion market value of Gencor's investment in Implats at the end
of June 2001 exceeded its R7.7 billion market value at 30 June 2000 by 60%.
Gencor's market capitalisation of R11.8 billion (2000: R6.8 billion)
represented a discount of 4.6% (2000: 11.9%) to Implats' market value.
Prospects
Gencor's fortunes rest on Implats' performance, which is principally
dependent on the prices of platinum and palladium. In recent months these
prices have come off their spectacular highs as the motor-car manufacturers
have reduced their reliance on palladium (which was in short supply) and
reverted to platinum (of which there is sufficient and for which the market
fundamentals remain sound) and have dampened prospects for the year ahead.
The Implats group is well placed on the cost curve, is well structured to
take advantage of the underlying strength of the platinum market and is well
positioned to grow with the market as a result of recent acquisitions and
mineral rights transactions. This past year's results are unlikely to be
repeated but current expectations are that Implats' (and thus Gencor's)
earnings should better those of financial year 2000, which were a record at
that time.
Dividends
In line with the policy of distributing all dividend income received from
underlying investments and to recognise the underlying nature of those
receipts, the Board has declared total ordinary dividends of 333 cents per
share (2000: 163 cents per share) for the year and a special dividend of 264
cents per ordinary share at the half year, absorbing R2 081 million in
total.
For and on behalf of the Board
JM McMahon MV Mennell
Chairman Director
final dividend no. 151
A final dividend no. 151 of 209 cents (2000: 129 cents) per ordinary share
was declared on 27 August 2001.
- Last day to trade cum-dividend Friday, 5 October 2001
- Trading ex-dividend commences Monday, 8 October 2001
- Record date Friday, 12 October 2001
- Date of payment Monday, 15 October 2001
The dividend will be transferred electronically on 15 October 2001 to the
bank accounts of those shareholders who utilise this facility whilst
dividend cheques will be mailed to the other shareholders on the same date.
The dividend is payable in the currency of the Republic of South Africa,
unless arrangements to the contrary have been made with the transfer
secretaries, provided such payments are in accordance with the regulations
of the South African Reserve Bank.
Registered office
KPMG Crescent, North Wing, First Floor, 85 Empire Road, Parktown 2193.
Postal address
Postnet Suite 222. Private Bag X30500, Houghton 2041
London office
Project Consultants Limited, Walnut House, Walnut Gardens Claydon, Banbury,
Oxon OX17 1NA
Company secretary
J Marais
Transfer secretaries
Mercantile Registrars Limited, 11 Diagonal Street, Johannesburg, 2001 PO Box
1053, Johannesburg 2000
Sponsor
Investec
The Annual Report will be mailed to shareholders on or about 6 September
2001 and copies may be obtained from:
Transfer Secretaries: Mercantile Registrars Limited. PO Box 1053,
Johannesburg 2000. Tel: (011) 370-5000. Fax: (011) 370-5271/2
London Office: Project Consultants Limited, Walnut House, Walnut Gardens,
Claydon, Banbury, Oxon OX17 1NA. Tel: +44 (01295) 690180. Fax: +44 (01295)
690181/2
