| Fri 31 Aug 2001, 0:00 | | Kelgran Limited - Audited Results |
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Kelgran Limited
Dimension Stone Specialists
Incorporated in the Republic of South Africa
Registration number 1975/004595/06
Code: KLG
ISIN: ZAE0000038851
Audited results for the year ended 30 June 2001
Turnover increased by 14 percent
Profit before tax increased by 28 percent
Net debt reduced by 34 percent
CONDENSED 2001 2000
INCOME STATEMENT R'000 R'000
Revenue 371 867 327 106
Operating profit before depreciation,
finance costs and non operational cost 37 349 39 918
Depreciation (13 351) (19 744)
Net finance costs (4 501) (6 471)
Profit before non operational cost 19 497 13 703
Non operational cost (4 266) (1 757)
Profit before taxation 15 231 11 946
Taxation - current (3 916) (1 169)
Taxation - deferred 10 616 214
Profit after taxation 21 931 10 991
Minority interest (132) (80)
Attributable to ordinary shareholders 21 799 10 911
Reconciliation to headline earnings
Attributable to ordinary shareholders 21 799 10 911
Profit on sale of property, plant and
equipment - net of tax (1 967) (6 605)
Headline earnings 19 832 4 307
Number of shares in issue ('000) 91 709 91 709
Weighted average number of shares ('000) 91 709 91 709
Fully dilutive number of shares ('000) 94 034 92 548
Earnings per share (cents)
- basic 23,8 12,1
- fully diluted 23,2 11,8
- headline 21,7 4,8
- fully diluted headline 21,1 4,7
Dividends per share (cents)
- interim 2,0 -
- final 3,0 4,0
CONDENSED 2001 2000
BALANCE SHEET R'000 R'000
ASSETS
Non-current assets 61 639 72 487
Property, plant and equipment 51 341 72 462
Deferred taxation 10 273 -
Investments 25 25
Current assets 235 567 219 050
Inventories 114 374 103 338
Accounts receivable 107 275 97 550
Owing by holding company 150 -
Cash and cash equivalents 13 768 18 162
Total assets 297 206 291 537
EQUITY AND LIABILITIES
Capital and reserves 163 474 146 330
Minority shareholders' interest in
subsidiaries 273 141
Non-current liabilities 11 247 12 024
Borrowings - 1 253
Deferred taxation - 343
Rehabilitation and closure cost obligations 10 178 9 258
Post-retirement medical benefits obligations 1 069 1 170
Current liabilities 122 212 133 042
Accounts payable 69 774 64 221
Current tax liabilities 4 640 1 052
Short-term borrowings 44 977 64 101
Shareholders for dividends 2 821 3 668
Total equity and liabilities 297 206 291 537
CONDENSED 2001 2000
STATEMENT OF CHANGES IN EQUITY R'000 R'000
Ordinary share capital
At the beginning of the period 1 834 1 745
Shares issued during the period - 89
At the end of the period 1 834 1 834
Share premium
At the beginning of the period 69 294 67 190
Share premium raised - 2 104
At the end of the period 69 294 69 294
Non-distributable reserves
At the beginning of the period 6 065 6 065
Movements during the period - -
At the end of the period 6 065 6 065
Retained earnings
At the beginning of the period 69 137 61 894
Net profit for the period 21 799 10 911
Dividends (4 655) (3 668)
At the end of the period 86 281 69 137
Capital and reserves 163 474 146 330
CONDENSED 2001 2000
CASH FLOW STATEMENT R'000 R'000
Cash flows from operating activities 393 10 257
Cash generated from operations 14 990 18 772
Net finance cost (4 501) (6 471)
Non operational cost (4 266) (1 757)
Taxation (paid)/refunded (328) 138
Dividends paid (5 502) (425)
Cash flows from investing activities 10 580 8 917
Cash flows from financing activities (1 253) (5 232)
Net increase in cash and cash equivalents 9 720 13 942
Cash and cash equivalents at the
beginning of the period (40 929) (54 871)
Cash and cash equivalents at
the end of the period (31 209) (40 929)
Notes to the Audited Financial Statements
The accounting policies adopted in the preparation of the audited financial
statements are consistent with those used in the annual financial statements
for the year ended
30 June 2000.
The bank guarantees given by the Group to third parties amounted to R7,6
million, whilst contingencies totalled R1,2 million (R7,3 million and R1,3
million, respectively as at 30 June 2000).
Comments
Highlights of the 2001 financial year were an increase in turnover of 14
percent, a 28 percent increase in profit before tax, as well as a 34 percent
reduction in net debt.
This achievement is significant considering the operational difficulties
faced during the year, which included labour disruptions, transport
difficulties and retrenchment costs.
Demand for granite remained stable during the year, but this demand was not
met due to low production levels at most quarries.
Financial Results
Turnover increased by 14 percent from R327,1 million to R371,9 million,
mainly as a result of the weaker Rand.
Profit before taxation increased by 28 percent from R11,9 million to R15,2
million. This includes a substantial saving on finance costs, and increased
retrenchment costs reflected as non-operational cost - as a result of the
outsourcing of quarry operations.
Included in the deferred tax credit of R10,6 million in the income
statement, is a credit of R8,2 million relating to the recognition of a
deferred tax asset, in respect of previously unrecognised tax losses of
certain subsidiaries, to the extent that realisation of the related tax
benefit is now probable. The tax credit resulted in an increase in profit
after taxation from R11,0 million to R21,9 million.
Capital expenditure for the financial year amounted to R6,3 million (30 June
2000: R9,4 million).
Debt, net of cash, improved by 34 percent from R47,2 million to R31,2
million, and the net debt equity ratio was 19,1 percent (30 June 2000: 32,2
percent).
Operational Activities
Despite stable market conditions, sales volumes were marginally lower than
the previous year, mainly as a result of production difficulties caused by
lower recoveries at the Rustenburg quarries, as well as labour disruptions.
Significant improvements have been achieved in mining methods at most
quarries, the benefit of which should be seen in the new year.
Further quarry contracts have been awarded to independent operators, with
resulting benefits in cost of production.
The Barracuda tile factory performed to expectations, and has diversified
its manufacturing range to include monumental products.
Post Balance Sheet Events
The outsourcing of the quarry operations at Rustenburg resulted in
retrenchment costs of R5,5 million during July 2001.
Prospects
Continued outsourcing of quarry operations in the next financial year should
result in a - reduction in overhead costs. This will also allow Kelgran to
focus on marketing and mineral resource management, and should increase
turnover and margins within the present cost structure.
More intense exploration efforts also resulted in several breakthroughs in
terms of the discovery of new granite products, which will in the medium to
long-term support the growth of Kelgran's profit base.
Attributable income should therefore continue to improve, whilst debt is
expected to reduce further.
Dividend
The Board of Directors has resolved to declare a final dividend (Dividend
number 15) for the year ended 30 June 2001 of 3 cents per share. This brings
the total dividend for the year to 5 cents per share, including an interim
dividend of 2 cents per share, compared to 4 cents per share for the
previous financial year.
Last date to trade cum-dividend 28 September 2001
Trading ex-dividend commences 1 October 2001
Record date 5 October 2001
Date of payment 8 October 2001
Share certificates may not be dematerialised between Friday, 21 September
2001 and Friday, 5 October 2001.
By order of the Board
R F E Brown
Managing Director
Johannesburg 31 August 2001
Dato' Choo Eng Guan*
RFE Brown (Managing Director) and
FP van Wyk
Non-executive Directors
Dato' Yap Yong Seong* (Chairman)
Dato' Murad Mohamed Hashim*
Yap Wee Keat*, Dr J Mphafudi
Yap Wee Chun* and V di Capua**
*Malaysian ** Italian
Registered Office
4 Homestead Avenue
Bryanston
Sandton 2196
Transfer Secretaries
Mercantile Registrars Limited
11 Diagonal Street
Johannesburg 2001
