| Wed 12 Sep 2001, 0:00 | | Masonite - Interim Report And Withdrawal Of Cautio |
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MASONITE (AFRICA) LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1942/015502/06)
Share code:MAS ISIN code: ZAE000004289
("Masonite" or "the company")
INTERIM REPORT
for the six months ended June 30, 2001
and Withdrawal of Cautionary Announcement
GROUP TRADING RESULTS
(R000's) Six months to Twelve months to
June 30 June 30 December 31
2001 2000 2000
(unaudited) (unaudited) (audited)
Income statements
Revenue 128 018 118 075 255 202
Cost of sales (89 417) (85 205) (182 028)
Gross profit 38 601 32 870 73 174
Other operating income 2 628 1 130 3 178
Distribution expenses and allowances (30 224) (26 060) (55 563)
Selling and general
administrative expenses (8 665) (8 533) (16 433)
Other operating expenses (873) (190) (3 183)
Plantation income 22 301 22 847 46 448
Plantation expense (21 890) (22 571) (45 040)
Profit from operations 1 878 (507) 2 581
Interest expenses (1 239) (1 000) (1 789)
Interest income 130 161 242
Profit/(Loss) before taxation 769 (1 346) 1 034
Taxation, South African
Current (538) (21) (1 187)
Transfer from/(to) deferrred
taxation 332 257 967
Transfer from deferred
investment allowances 43 44 87
Secondary Tax on Companies - - -
Net profit/(loss) after tax 606 (1 066) 901
Earnings per share (cents)
Attributable basis 9 (16) 13
Headline basis 9 (15) 12
Fully diluted basis 9 (17) 13
Balance sheets
Assets
Non-current assets
Property, plant and equipment 78 776 80 794 78 726
loans receivable 176 187 183
Total non-current assets 78 952 80 981 78 909
Current assets
Inventories 42 897 40 171 38 287
Trade receivables 41 576 32 555 39 351
Other receivables 12 990 8 271 5 322
Amounts due by fellow subsidiary 903 2 869 2 423
Cash and cash equivalents 15 30 5 641
Total current assets 98 381 83 896 91 024
Total assets 177 333 164 877 169 933
Equity and liabilities
Capital and reserves
Share capital 5 471 5 471 5 471
Non-distributable reserves 700 700 700
Accumulated profits 97 735 95 162 97 129
Total shareholders'
investment 103 906 101 333 103 300
Non-current liabilities
Interest bearing borrowings 18 359 8 594 314
Deferred taxation 6 756 7 798 7 088
Deferred investment allowance 206 293 249
Retirement benefit obligation 12 465 10 964 11 812
Total non-current liabilities 37 786 27 649 19 463
Current liabilities
Trade and other payables 35 104 31 356 31 657
Bank overdrafts 847 5 128 14 910
Taxation (326) (728) 438
Payable to holding company 16 139 165
Shareholders for dividends - - -
Total current liabilities 35 641 35 895 47 170
Total equity and liabilities 177 333 164 877 169 933
Statement of changes in equity
Ordinary shareholders'
equity at beginning of period
As previously reported 103 300 109 480 109 480
Changes in accounting policy - (7 081) (7 081)
Restated balance 103 300 102 399 102 399
Changes in accumulated profits
Net profit for period 606 (1 066) 901
Ordinary dividends - - -
606 (1 066) 901
Ordinary shareholders'
equity at end of period 103 906 101 333 103 300
GROUP TRADING RESULTS
(R000's) Six months to Twelve months to
June 30 June 30 December 31
2001 2000 2000
(unaudited) (unaudited) (audited)
Cash flow statements
Cash flows from
operating activities
Profit from operations 1 878 (507) 2 581
Depreciation 4 980 5 126 10 055
Profit on sale of asset (23) (140) (150)
Increase in liability for
retirement benefit obligation 653 848 1 696
(Utilised)/Generated by
working capital (9 678) (9 469) (10 661)
Net borrowing costs (1 109) (839) (1 547)
Taxation (1 302) 1 645 1 644
Net cash available from
operating activities (4 601) (3 336) 3 618
Ordinary dividends - (886) (886)
Net cash inflow from
operating activities (4 601) (4 222) 2 732
Cash flow from investing activities
Additions to plant and equipment (3 655) (891) (2 756)
Replacement of plant and equipment (1 496) (2 702) (3 780)
Proceeds from disposal of
property, plant and equipment 144 169 263
Decrease in loans receivable - 3 7
Net cash outflow from
investing activities (5 007) (3 421) (6 266)
Cash flows from financing activities
Increase/(Decrease) in
long-term borrowings 18 045 4 906 (3 374)
Net cash outflow from
investing activities 18 045 4 906 (3 374)
Net increase/(decrease) in
cash and cash equivalents 8 437 (2 737) (6 908)
Net cash and cash equivalents
at beginning of period (9 269) (2 361) (2 361)
Net cash and cash
equivalents at end of period (832) (5 098) (9 269)
NOTES
1. Accounting policies
This interim financial report has been prepared using the same accounting
policies as those detailed in the December Annual Report.
This interim report complies with the South African Statements of
Generally Accepted Accounting Practice (AC 127) interim financial reporting.
2. Taxation
Taxation is based on the best estimate of the weighted average annual
income tax rate expected for the full financial year.
3. Related party transactions
(a) There has been no change in the Group's related parties, as disclosed in
the December 2000 Annual Report. Transactions with related parties continue
to be on an arm's length basis and on the same terms and conditions as those
transacted with third parties.
(b) The following transactions were effected with and between the related
parties during the periods under review:
June 30 June 30 December 31
(R000's) 2001 2000 2000
Revenue
Masonite Europe 4 327 6 163 10 625
Purchases
International Paper - - 1 021
Masonite Corporation - 1 323 317
- 1 323 1 338
4. Capital expenditure commitments
Capital commitments:
Contracted for 201 868 246
Authorised but not contracted for 1 248 27 2 673
The funds required to meet such expenditure will be provided from working
capital and long-term loans.
5. Earnings per share
The calculation of basic earnings per share is based on net profit
attributable to 6 817 558 (2000: 6 817 558) ordinary shares, which is the
number of shares in issue during the year. The dilution of earnings per
share is the result of options granted to executive directors and senior
management to acquire 360 000 (2000: 370 000) ordinary shares at a weighted
average price of R4,07 (2000: R4,07) per share on or before October 2008.
The calculation of fully diluted earnings per share is based on the same
earnings as used in the calculation of basic earnings per share attributable
to 6 880 156 (2000: 6 879 760) ordinary shares, which takes into account
that the option price is less than fair value.
6. Changes in accounting policy
The group adopted the following accounting policy in the year 2000:
AC 116 Employee benefits.
In terms of this statement, medical benefits payable in respect of retired
employees are provided for over the working lives of the eligible employees.
7. Comparative figures
When an accounting policy is changed or figures are reclassified,
comparative figures are restated accordingly.
8. STRATE
Dematerialisation of the company's shares commenced on August 20, 2001.
Trading for electronic settlement commences on September 10, 2001 with
electronic settlement taking place from September 17, 2001. Existing share
certificates will no longer be good for delivery for transactions entered
into on the JSE Securities Exchange South Africa after September 10, 2001.
COMMENTS
Withdrawal of cautionary
Shareholders are referred to the cautionary announcement dated June 29,
2001 and are advised that Premdor Incorporated's acquisition of Masonite
Corporation, Masonite's holding company, from International Paper was
completed on August 31, 2001. Accordingly, Masonite shareholders need no
longer exercise caution when dealing in their shares.
Prospects
Local business conditions were largely unchanged over the period and are
not expected to improve materially over the remainder of the year. Margins,
however, have shown an improvement.
Commodity prices have declined internationally, although prospects for
improved export margins are possible through product mix enrichment.
In view of the results for the six months, no interim dividend has been
declared.
For and on behalf of the Board
MJ Slater Managing Director
DS Cooper Financial Director
September 12, 2001
DIRECTORS:
AH Wilson (Chairman), MJ Slater **(Managing), WP Coetzee, DS Cooper, PG
Heist *(Alt. KMP Spencer), JU Morrison *(Alt. AG Venton) *USA ** BRITISH
COMPANY SECRETARY:
B van Maarseveen
Investment Bank and Sponsor
Nedcor Investment Bank Limited
TRANSFER SECRETARIES:
Mercantile Registrars Limited, PO Box 1053, Johannesburg, 2000,
11 Diagonal Street, Johannesburg, 2001, Republic of South Africa.
Telephone (011) 370 5000.
