| Thu 20 Sep 2001, 0:00 | | Edward L Bateman Limited - Audited Group Results |
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Edward L Bateman Limited
(Registration number 1930/002553/06)
Share code: ELB
ISIN code: ZAE 000002374
Profitability restored
Dividend up 100%
Audited group results and dividend announcement for the year ended 30 June
2001
Group Income Statement
Year Year
ended ended
30 June 01 30 June 00
R000 R000
Sales revenue 2 937 537 1 779 575
Net operating costs excluding
depreciation and amortisation (2 845 959) (1 747 564)
Operating profit before depreciation,
amortisation and abnormal items 91 578 32 011
Depreciation and amortisation (36 568) (32 804)
Operating profit/(loss) before abnormal items 55 010 (793)
Abnormal items (2 143) (24 206)
Profit/(loss) from operations 52 867 (24 999)
Net treasury income not related to projects 25 547 19 781
(Loss)/income from associates (6 960) 1 028
Profit/(loss) before tax 71 454 (4 190)
Income tax (expense)/income (14 438) 13 871
Profit after tax 57 016 9 681
Preference dividends (1) (1)
Minority interest (16 037) (5 800)
Net profit for the year 40 978 3 880
Headline earnings 41 445 3 552
Headline earnings before abnormal items 43 438 26 514
Weighted average number of ordinary
shares in issue during the year (000's) 30 020 28 958
Earnings per ordinary share (cents) 136,5 13,4
Headline earnings per ordinary share (cents) 138,1 12,3
Headline earnings before abnormal trading
items per ordinary share (cents) 144,7 91,6
Dividends per ordinary share (cents) 50,0 25,0
Group Balance Sheet
30 June 01 30 June 00
R000 R000
Assets
Non current assets 260 642 187 818
Property, plant and equipment 165 686 146 123
Intangible assets 12 958 6 420
Investments in associates 17 375 1 676
Other investments 27 185 1 187
Long term debtors 11 888 12 423
Deferred tax assets 25 550 19 989
Current assets 1 476 382 1 066 447
Cash 913 593 529 359
Other 562 789 537 088
Total assets 1 737 024 1 254 265
EQUITY AND LIABILITIES
Capital and reserves 283 567 258 391
Issued capital 7 923 8 570
Reserves 2 130 2 130
Accumulated profit 273 514 247 691
Preference shares 13 13
Minority interest 68 241 73 436
Non current liabilities 35 197 2 905
Interest bearing borrowings 29 792 1 237
Non interest bearing borrowings 806 1 356
Deferred tax liabilities 4 599 312
Current liabilities 1 350 006 919 520
Interest bearing - banks 74 239 55 815
Interest bearing - other 29 677 13 984
Other 1 246 090 849 721
Total equity and liabilities 1 737 024 1 254 265
Ordinary shares in issue (000's) 30 257 29 869
Net asset value per share (cents) 937 865
Group Cash Flow Statement
Year Year
ended ended
30 June 01 30 June 00
R000 R000
Cash flows from operating activities
Profit before abnormal items 55 010 (793)
Abnormal items 2 952 (2 950)
Non cash adjustments and changes
in working capital 399 411 84 816
Net treasury income not related to projects 25 547 19 781
Dividend received from associate - 125
Replacement of equipment and vehicles (33 157) (44 173)
Goodwill arising during the period - (9 519)
Income tax paid (6 887) (10 000)
Cash inflow from operating activities
before dividends paid 442 876 37 287
Dividends paid (31 166) (38 690)
Cash inflow/(outflow) from operating
activities 411 710 (1 403)
Cash flows from investment activities (71 706) (54 587)
Cash inflow/(outflow) before financing
activities 340 004 (55 990)
Cash flows from financing activities 27 898 8 371
Increase/(decrease) in cash and cash
equivalents 367 902 (47 619)
Cash and cash equivalents at the
beginning of the year 473 544 521
163roportionate share of cash in joint venture
on disposal (2 092) -
Cash and cash equivalents at the end of
the year 839 354 473 544
Reconciliation to balance sheet
Current assets: cash 913 593 529 359
Current liabilities: interest bearing
bank borrowings (74 239) (55 815)
Net cash and cash equivalents 839 354 473 544
GROUP STATEMENT OF CHANGES IN CAPITAL AND RESERVES
Issued Accumulated Total Total
capital Reserves profit 2001 2000
R000 R000 R000 R000 R000
Balance at the
beginning of the year
As previously stated 8 570 2 130 239 910 250 610 304 422
Prior year adjustment
Net equity adjustment
in respect of
deferred tax asset/
(liability) arising
from the recognition
of tax losses and tax
on foreign reserves 7 781 7 781 (16 134)
As restated 8 570 2 130 247 691 258 391 288 288
Movements in issued
capital
Issue of shares 4 168 4 168 2 020
Share repurchase
programme (4 815) (4 815) -
Direct movements in reserves
Foreign currency translation - - 328
Property revaluation reversal - - (15 303)
Movements in accumulated profit
Net profit for the year 40 978 40 978 3 880
Minority adjustments 10 10 4 273
Share incentive scheme
trust loan in subsidiary
written down - - (736)
Deficit on issue of incentive
shares in subsidiary - - (907)
Goodwill written off - - (15 985)
Ordinary dividends (15 165) (15 165) (7 467)
Balance at the end
of the year 7 923 2 130 273 514 283 567 258 391
Comments
INTRODUCTION
The company operates as an investment holding company deriving most of its
distributable income from dividends. The major investments are grouped into
two segments namely Bateman Project Holdings Limited ("Batepro") which is
active in the field of engineering design, contracting and project
management, and Bateman Industrial which comprises Bateman Industrial
Holdings Limited ("BIH") which is active in the supply of equipment and
services and Safbin Systems (Proprietary) Limited ("Safbin") which is active
in the supply of collapsible reusable bins and related logistics for the
movement of fruit and other related products. These operating subsidiaries
include treasury operations as appropriate to their businesses.
FINANCIAL RESULTS
Activity levels as represented by the consolidated sales revenue figure of
trading subsidiaries increased to R2 938 million compared to R1 780 million
the previous year. Because of varying terms of payment and a conservative
approach to taking contract profits, there is no consistent correlation
between sales revenue and profits in any accounting period.
The improvement in headline earnings from R3,6 million in 2000 to R41,4
million in 2001 highlights the benefits derived from the improved trading
conditions and the restructuring which was undertaken in prior years.
The segmental analysis of earnings is as follows:
Bateman
Total Batepro Industrial
2001 2000 2001 2000 2001 2000
R000 R000 R000 R000 R000 R000
Sales revenue 2 937 537 1 779 575 2 605 612 1 466 628 331 925 312 947
Operating
profit before
depreciation,
amortisation
and abnormal
items 91 578 32 011 75 565 24 441 16 013 7 570
Depreciation
and
amortisation (36 568) (32 804) (24 367) (22 503) (12 201) (10 301)
Operating
profit/(loss)
before
abnormal items 55 010 (793) 51 198 1 938 3 812 (2 731)
Abnormal items (2 143) (24 206) - 497 (2 143) (24 703)
Profit/(loss)
from
operations 52 867 (24 999) 51 198 2 435 1 669 (27 434)
Net treasury
income not
related to
projects 25 547 19 781 7 443 15 386 18 104 4 395
(Loss)/income
from
associates (6 960) 1 028 (7 664) 913 704 115
Profit/(loss)
before tax 71 454 (4 190) 50 977 18 734 20 477 (22 924)
Income tax
(expense)/
income (14 438) 13 871 (9 881) (3 643) (4 557) 17 514
Profit/(loss)
after tax 57 016 9 681 41 096 15 091 15 920 (5 410)
Minority
interest (16 038) (5 801) (19 092) (8 058) 3 054 2 257
Net profit/
(loss) for}
the year 40 978 3 880 22 004 7 033 18 974 (3 153)
Batepro
The company has a 66% interest in Batepro. Batepro has come through a
difficult year which also saw extensive restructuring of its worldwide
operations. With certain longer term contracts now in hand and future
opportunities under consideration the potential for growth into the future
is encouraging.
Bateman Industrial
BIH is wholly owned by ELB. Bateman Earthmoving Equipment has returned to
profitability and Bateman McWade had another excellent year. The remaining
investments in BIH were profitable for the period. The restructured entity
is expected to contribute positively in the future.
ELB's interest in Safbin remained at 63% throughout the year. Delays in
effecting the introduction of bins into new markets have resulted in losses
being incurred in the year under review. Subsequent to the year-end the
Industrial Development Corporation has increased its funding of Safbin
thereby reducing the company's interest to 50%. This additional funding has
been used to increase the bin fleet to what is considered an optimal level
for the logistics structure which is now in place. It is expected that as a
result of this and other actions, Safbin could be profitable in the coming
year.
Prior year adjustment
A prior year adjustment has been made retrospective to June 1999 to raise
deferred tax assets and liabilities in respect of both local and foreign
operations. Accordingly the net loss of R11 477 000 previously reported for
the 2000 financial year is now stated as a net profit of R3 880 000. The
effect in the 2001 financial year is an additional tax expense of
R6 946 000.
PROSPECTS
The group has budgeted for growth in the coming year, the achievement of
which could be effected by the tragic events that have recently taken place.
DIVIDENDS
The final dividend has been increased from 16 cents in 2000 to 33 cents in
2001, giving a total dividend for the year of 50 cents (2000: 25 cents).
Cautionary announcement
Shareholders are referred to the previous announcements dated 22 June 2001
and 3 August 2001 and are advised that negotiations are still in progress
which, if successful, could have an impact on the price at which ELB and/or
Batepro shares trade on the JSE Securities Exchange South Africa.
Accordingly, shareholders are advised to continue to exercise caution when
dealing in the respective shares until a further announcement is made.
On behalf of the board
AG Fletcher
Chairman
19 September 2001
Declaration of Dividends
PREFERENCE DIVIDEND NO 101
The directors of Edward L Bateman Limited ("ELB") have resolved to declare a
preference dividend for the half year ended 30 June 2001, at the rate of 6%
per annum on the 6% fixed cumulative redeemable preference shares of R2 each
equivalent to 6 cents per share. The last day to trade in order to
participate in the dividend will be Friday, 12 October 2001. The preference
shares will commence trading "EX" the dividend from the commencement of
business on Monday, 15 October 2001, and the record date will be Friday, 19
October 2001. Dividend cheques will be posted from the registered office on
or about 22 October 2001. Share certificates may not be dematerialised from
Monday, 8 October 2001 until Friday, 19 October 2001, both dates inclusive.
ORDINARY DIVIDEND NO 107
Notice is hereby given that the directors of Edward L Bateman Limited
("ELB") have resolved to declare dividend no 107 of 33 cents per share,
being the final dividend for the year ended 30 June 2001. The last day to
trade "CUM" the dividend in order to participate in the dividend will be
Friday, 12 October 2001. The shares of ELB will commence trading "EX" the
dividend from the commencement of business on Monday, 15 October 2001 and
the record date will be Friday, 19 October 2001. Payment will be made on
Monday, 22 October 2001. On due date, dividends, where applicable, will be
electronically transferred to shareholders' bank accounts. In the absence of
suitable mandates, cheques will be posted to shareholders. Share
certificates may not be dematerialised fom Monday, 8 October 2001 until
Friday, 19 October 2001, both dates inclusive.
By order of the board
HAC Poole
Secretary
Boksburg
19 September 2001
Share transfer secretaries
Mercantile Registrars Limited
11 Diagonal Street
Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
