| Fri 7 Sep 2001, 0:00 | | Wesco Investments Limited |
|
(Registration number 1968/005871/06)
Share code: WES ISIN Number: ZAE000007928
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2001
GROUP INCOME STATEMENT (R'000)
Six months ended Year
ended
30 June % 30 June 31
2001 Change 2000 December
Unaudite Unaudite 2000
d d Audited
Turnover 3 916 6,7 3 668 7 720 498
215 642
Cost of sales 3 583 (3,8) 3 451 7 274 770
549 791
Gross profit 332 666 53,4 216 851 445 728
Distribution 156 421 (14,1) 137 109 246 857
expenses
Administrative 161 392 (0,2) 161 067 222 749
and other
expenses
Operating income 14 853 (81 325) (23 878)
(loss)
Investment 52 048 0,4 51 846 91 890
income and
growth
Finance costs (75 840) (27,8) (59 327) (129 949)
Share of income 5 855 (65,3) 16 896 31 253
of associates
Loss before (3 084) 95,7 (71 910) (30 684)
taxation
Taxation 397 98,2 22 680 11 379
Loss after (2 687) 94,5 (49 230) (19 305)
taxation
Minority (6 433) 79,7 (31 746) (22 613)
interest
Net income 3 746 (17 484) 3 308
(loss)
attributable to
ordinary
shareholders
Earnings per 45 (208) 39
share (cent)
Headline 45 (208) 59
earnings per
share (cents)
Number of 8 401,8 8 401,8 8 401,8
ordinary shares
in issue (`000)
GROUP CASH FLOW STATEMENT (R'000)
Six months ended Year
ended
30 June 30 June 31
2001 2000 December
2000
Net cash available 42 438 (174 (215
from operating 451) 057)
activities
Net cash used in (131 830) (126 (154
investing 705) 083)
activities
Net cash used in (46 316) (71 038) (186
financing 274)
activities
Decrease in cash (135 708) (372 (555
and cash 194) 414)
equivalents
GROUP BALANCE SHEET (R'000)
30 June 30 June 31
2001 2000 Decembe
Unaudited Unaudite r
d 2000
Audited
ASSETS
Non-current assets 1 903 778 1 940 1 852
495 797
Property, plant 960 520 1 018 985 125
and equipment 543
Investment in 202 640 181 301 203 716
associates
Deferred tax 36 128 15 966 24 958
assets
Other non-current 704 490 724 685 638 998
assets
Current assets 2 399 699 2 186 2 024
640 822
Total assets 4 303 477 4 127 3 877
135 619
EQUITY AND
LIABILITIES
Capital and 1 353 023 1 320 1 339
reserves 175 579
Minority interest 1 210 815 1 190 1 213
725 458
Non-current
liabilities
Interest bearing 328 704 480 332 388 746
borrowings
Current 1 410 935 1 135 935 836
liabilities 903
Total equity and 4 303 477 4 127 3 877
liabilities 135 619
Net asset value 16 104 15 713 15 944
per share (cent)
CONSOLIDATED STATEMENT
OF CHANGES IN EQUITY (R'000)
Share Revaluati Retained Total
capita on and earnings
l other
reserves
Balance at 1 8 552 421 810 909 217 1 339
January 2001 579
Net gains not 9 932 9 932
recognised in
the income
statement
Dilution of (234) (234)
interest in
associated
company
Transfers 24 685 (24 685)
Net income 3 746 3 746
Balance at 30 8 552 456 193 888 278 1 353
June 2001 023
NOTES TO THE CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Accounting policies
These consolidated interim financial statements are prepared in accordance
with AC127 Interim Financial Reporting and Statements of Generally Accepted
Accounting Practice in South Africa. The accounting policies used in the
preparation of the interim financial statements are consistent with those
used in the annual financial statements for the year ended 31 December 2000.
The interim financial statements for the period ended 30 June 2000 have been
restated in accordance with the changes in accounting policy as applied in
the 2000 annual financial statements.
Movement in current and non-current borrowings (R'000)
Balance at 31 December 501 804
2000
Repayments (74 188)
Other movements 3 667
Balance at 30 June 2001 431 283
Post-balance sheet event
Subsequent to the balance sheet date Toyota South Africa Limited (Toyota)
repurchased all its issued shares other than those held by Wesco and Toyota
Motor Corporation of Japan, at a cost of R446 million. The transaction was
funded from Toyota's internal resources. Wesco's interest in Toyota
increased from 50.00% to 64.28% as a result of the transaction, and the
effect thereof will be reflected in the second six months' results.
Contingencies
There are no new contingencies to report on.
COMMENT
Results
Wesco's results reflect the performance of the Group's two main investments,
Toyota South Africa Limited and Metair Investments Limited. Toyota incurred
a loss of R13.4 million during the period under review despite an increase
of 6.9% in retail unit sales. Unfavourable exchange rates during the first
quarter of this year had a negative impact on results. Metair recorded
headline earnings of R34.0 million compared with R38.7 million during the
same period of the previous year. Turnover increased by 12.8%, but margins
were under pressure.
Forecast
At the time of writing workers at Toyota and at other assemblers have
returned to work after a protracted strike of about three and a half weeks.
The impact of the strike and an expected weakening in the local vehicle
market would mitigate against an improvement in the second six months'
results. Metair's earnings will be similarly affected.
DIVIDEND
As in the past no interim dividend will be paid. A final dividend will be
paid out of dividend income from Toyota and Metair received during this
year.
On behalf of the Board
E Le R Bradley A D Plummer
Executive Chairman Director
7 September 2001
Registered office Transfer Secretaries
Third Floor, 30 Wellington Road Mercantile Registrars Limited
Parktown 2193 11 Diagonal Street
Johannesburg 2001
Directors: E Le R Bradley (Chairman), RS Broadley, AD Plummer*, AJJ Wessels
*British
Company Secretary: JM Caddy
