| Thu 13 Sep 2001, 0:00 | | Gubb & Inggs Limited - Profit Announcement For The |
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Gubb & Inggs Limited
(Incorporated in the Republic of South Africa)
(Registration number 1916/001495/06)
JSE code: GUB ISIN code: ZAE000003208
PROFIT ANNOUNCEMENT FOR THE YEAR ENDED 30 JUNE 2001
CONSOLIDATED BALANCE SHEET
2001 2000
Audited Audited
R'000 R'000
ASSETS
Non-current assets
Property, plant and equipment 32 325 34 482
Investment properties 14 512 13 300
Unlisted investments 954 954
Loans 4 5
Deferred taxation 225 1 326
48 020 50 067
Current assets
Inventories 126 354 129 243
Trade and other receivables 78 394 77 114
Bank balances 776 1 177
205 524 207 534
Total assets 253 544 257 601
EQUITY AND LIABILITIES
Capital and reserves
Share capital 1 015 1 015
Share premium 277 277
Non-distributable reserves 22 592 21 823
Distributable reserves 71 191 61 063
Ordinary shareholders' interest 95 075 84 178
Outside shareholders' interest 422 1 070
95 497 85 248
Non-current liabilities
Deferred taxation 1 884 2 269
Long-term liabilities 1 130 686
3 014 2 955
Current liabilities
Trade and other payables 24 727 20 882
Amount owing to group companies 4 748 4 302
Bank overdrafts 125 558 144 214
155 033 169 398
Total equity and liabilities 253 544 257 601
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
30 June 2001 30 June 2000
Audited Audited
R'000 R'000
Revenue 405 742 334 492
Cost of sales 346 169 285 634
Gross profit 59 573 48 858
Other operating income 6 581 5 937
66 154 54 795
Operating expenses 35 747 30 680
Results from operating activities 30 407 24 115
Financing costs 16 230 12 743
Profit before taxation 14 177 11 372
Taxation 3 681 1 134
Profit after taxation 10 496 10 238
Minority interest 648 (494)
Net profit for the year 11 144 9 744
Shares issued 2 031 2 031
Earnings per ordinary share (cents) 548,7 479,8
Dividend per ordinary share (cents) 50,0 50,0
Dividend cover per share (times) 11,0 9,6
STATEMENT OF CHANGES IN EQUITY
Share Share Non- Accumu- Total
capital premium distribu- lated
table profit
reserves
R'000 R'000 R'000 R'000 R'000
Balance at 1 July 2000 1 015 277 21 823 61 063 84 178
Net profit for the 11 144 11 144
year
Surplus on translation 769 769
of foreign
subsidiaries
Dividends (1 016) (1 016)
Balance at 30 June 1 015 277 22 592 71 191 95 075
2001
REVIEW OF ACTIVITIES - JUNE 2001
The positive sentiments which your Directors expressed in their two previous
reports have been maintained throughout the financial year just completed.
The wool industry world-wide has now seen a two year period of sustained
improvement in wool processing activity, following the difficult years of
over capacities during the latter parts of the 90's.
Your Group, thanks to improved machine efficiencies and positive labour
relations, has been in a position to participate and benefit from the
improved trading conditions for the period under review. The satisfactory
processing volumes of the previous year were well maintained in all of the
Group's products and even increased in wool top and carbonising despite a
further overall reduction of 5% in wool production in South Africa.
Increased demand for shrinkproofed as well as `total easy care' treated wool
was encouraging and likely to benefit further from the friendly US Tariff
Bill (AGOA).
With local wool prices in Rand terms having increased by a further 25%
during the past year mainly due to the devaluation of the Rand and mohair
prices also reaching a record high, it is not surprising that the Group's
turnover increased by 21%. Although showing a slight reduction when compared
to the previous year, gearing and interest costs remain relatively high.
While there is no doubt that mohair made a significant contribution to this
year's results it became clear in the latter part of the period under review
that this speciality fibre, following a two year period of extra-ordinary
good demand, had out-priced itself in the fashion markets of the world. This
has resulted in reduced demand and lower prices, particularly for the finer
qualities, while interest for adult hair at the recent lower price levels
has held up well and mill capacity remains fully utilised.
The improved conditions in the world wool industry over the past two years,
as positive as it has been, has also seen the price increase viz-a-viz other
competing textile fibres. While wool is costing the manufacturer 42% more in
AUS$ terms compared to two years ago, cotton prices have fallen by 52%,
polyester 16% and acrylic 9% during 2001, reducing wool's competitiveness.
While this trend, coupled with the world's economic slowdown, might signal a
medium-term weakening of wool prices in 2001/2002, this will be partly
offset by the continuing tight wool supply position. Australian production
has dropped over 40% since the early 90's, a similar trend has been seen in
South Africa and the South American wool producing countries of Argentina,
Uruguay and Brazil. In addition the Australian stockpile has at long last
disappeared as a convenient source of prompt wool supply, thus enabling wool
markets to be determined once again by current supply and demand.
The prospect of an artificially high wool price, more as a result of a
supply-push than a demand-pull scenario, is not good news for wool combers
in general as well as for your Group. As wool top production exceeds actual
demand from spinners, margins could once again decline.
Concern over wool supply in South Africa has been a central theme in past
Director's Reports. While your Directors, management and staff in general
and shareholders alike are encouraged by the positive results of the past
two years, the concern over inadequate raw wool availability to satisfy
local processing capacities remains the single most important limitation to
your Group's future profitability.
DIVIDEND
Notice is hereby given that ordinary dividend no. 102 of 35 cents per share
has been declared in respect of the year ended 30 June 2001, payable to
shareholders registered in the books of the company at the close of business
on 9 November 2001. This is the final dividend for the year and, together
with interim dividend no. 101 of 15 cents per share to shareholders
registered in the books of the company on 6 April 2001, represents a total
of 50 cents per share for the year. (2000: 50 cents per share). Dividend
warrants will be posted on or about 3 December 2001.
The transfer books and register of members will be closed from 10 November
to 16 November 2001, both days inclusive, for the purpose of compiling a
list of shareholders entitled to dividend no. 102.
By order of the Board
HN Bonner Port Elizabeth
Secretary 14 September 2001
Transfer Secretaries: Computershare Services Limited, PO Box 61051,
Marshalltown 2107
Registered Office: Hendrik van Eck Drive, Uitenhage. PO Box 23, Uitenhage
6230
Directors: JP Stucken (Chairman) HN Bonner, RC Haw*, OEW Isenbeck* (German),
RA Kirsten, W MacDonald*, KD Mielke* (German), DJ Van Deemter
* (Non-executive)
