| Fri 28 Sep 2001, 0:00 | | Marlin - Interim Results |
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MARLIN CORPORATION LIMITED
(Registration number 1987/000717/06)
Share code: MLN ISIN: ZAE000004511
Interim results for the six months ended 30 June 2001
CONSOLIDATED INCOME STATEMENT
Unaudited Audited
30 Jun 30 Jun 31 Dec
Rm's 2001 2000 2000
Turnover 337,5 283,2 620,3
Operating income 20,8 4,5 19,6
Dividends received 0,1 0,7 0,1
Net finance charges (2,1) (3,9) (10,2)
Foreign exchange gain 8,7 4,5 35,3
Exceptional items (non-recurring) (3,2) (0,2) (4,4)
Income before taxation 24,3 5,6 40,4
Taxation (12,2) (1,7) (19,9)
Income after taxation 12,1 3,9 20,5
Earnings attributable to outside
shareholders (0,5) 0,6 1,6
Associated company equity
accounted loss 0,0 0,0 (0,8)
Net profit 11,6 4,5 21,3
Earnings per share (cents)
- net earnings per share 3,43 1,34 6,34
- before foreign exchange gain 0,84 0,01 (4,12)
- before taxation 7,05 1,85 12,23
- headline earnings 4,32 1,38 7,60
Weighted average ordinary shares
in issue ('000) 337 855 337 855 337 855
CONSOLIDATED BALANCE SHEET
Unaudited Audited
30 Jun 30 Jun 31 Dec
2001 2000 2000
Rm's
Shareholders' funds
Ordinary shareholders' equity 304,7 279,7 289,8
Outside shareholders' interest 12,4 40,9 14,9
317,1 320,6 304,7
Deferred tax 7,3 - 7,4
Interest bearing debt
Long-term borrowings 20,9 29,3 24,3
Short-term borrowings 15,5 16,2 14,2
36,4 45,5 38,5
Total capital employed 360,8 366,1 350,6
Fixed assets and investments
Operating assets 137,8 139,2 137,3
Mining/Quarrying rights 28,0 33,2 29,9
Investments and loans 38,8 40,9 37,8
204,6 213,3 205,0
Current assets
Inventories 83,7 90,2 89,0
Accounts receivable 254,9 217,8 206,1
338,6 308,0 295,1
Total assets 543,2 521,3 500,1
Less: Current liabilities:
Net overdraft (13,9) (36,2) (17,4)
Accounts payable (153,6) (113,7) (116,9)
Taxation (14,9) (5,3) (15,2)
Employment of capital 360,8 366,1 350,6
CONSOLIDATED CASH FLOW STATEMENT
Unaudited Audited
30 Jun 30 Jun 31 Dec
2001 2000 2000
Rm's
Cash generated from operations 51,8 39,5 102,8
Working capital movements (6,8) (30,1) (17,5)
Dividends received 0,1 0,7 0,1
Net interest paid (2,1) (3,9) (10,2)
Preference dividend paid (0,4) (1,3) (2,7)
Taxation paid (12,7) (0,9) (1,7)
Net cash inflow from operations 29,9 4,0 70,8
Investment activities
- maintaining operations (21,5) (7,2) (38,8)
- expanding operations (0,3) (12,9) 0,0
Net cash outflow from
investment activities (21,8) (20,1) (38,8)
Financing activities
- long-term borrowings repaid (3,4) (5,1) (10,0)
- short-term borrowings raised/(repaid) 1,4 (9,1) (11,2)
- outside shareholders' interest (2,6) 0,6 (21,7)
Net cash outflow from
financing activities (4,6) (13,6) (42,9)
Net decrease/(increase) in overdraft 3,5 (29,7) (10,9)
Overdraft at beginning of period (17,4) (6,5) (6,5)
Net overdraft at end of period (13,9) (36,2) (17,4)
STATEMENT OF CHANGES IN EQUITY
Unaudited Audited
30 Jun 30 Jun 31 Dec
2001 2000 2000
Rm's
Share capital and premium
Opening balance 288,8 288,8 288,8
Closing balance 288,8 288,8 288,8
Reserves
Opening balance 1,0 (23,8) (23,8)
Net income for period 11,6 4,5 21,3
Currency translation difference 3,3 10,2 3,5
Closing balance 15,9 (9,1) 1,0
Total shareholders' equity
Opening balance 289,8 265,0 265,0
Net income for period 11,6 4,5 21,3
Currency translation difference 3,3 10,2 3,5
Closing balance 304,7 279,7 289,8
SUPPLEMENTARY INFORMATION
Unaudited Audited
30 Jun 30 Jun 31 Dec
Rm's 2001 2000 2000
1 Depreciation for period (18,9) (20,3) (39,5)
2 Calculation of headline earnings
Net profit 11,6 4,5 21,3
(Profit)/loss on sale of fixed assets (0,2) 0,2 4,1
Loss/(profit) on disposal of
investment 3,2 (4,1) (4,1)
Unlisted investment write-off - 4,1 4,5
14,6 4,7 25,8
3 Capital expenditure for period 21,8 20,1 38,8
- maintaining operations 21,5 20,1 38,8
- expanding operations 0,3 - -
4 Number of shares in issue ('000) 337 855 337 855 337 855
5 Net asset value per share (cents) 90,18 82,79 85,76
6 Gearing as % of shareholders' equity 13,78 14,21 15,03
7 Annualised return on average
net assets (%) 7,60 3,23 7,36
PRODUCTION AND SALES STATISTICS
8 Tons removed 1 629 072 1 528 666 3 504 423
9 Tons produced 165 023 147 856 336 251
10 Recovery % 10,13 9,67 9,60
11 m3 sold 59 105 56 514 116 457
12 Average Landed US$ CIF/m3 price 664 667 664
COMMENTS
FINANCIAL REVIEW
Headline earnings achieved for the six months was 4,32 cents per share
compared with 1,38 cents per share for the corresponding period in 2000.
Group operating income increased to R20,8 million in the six months compared
with R4,5 million in 2000. An analysis of group operating income shows the
following:
Jun 2001 Jun 2000 Dec 2000
R'000 Six months Six months Twelve
months
Quarrying 21 835 12 143 27 767
Beneficiation (639) (2 455) (10 775)
Distribution 5 797 1 389 17 124
Corporate (6 176) (6 531) (14 555)
20 817 4 546 19 561
In assessing the comparative results for June 2000 and 2001 it should be
taken into account that the results of the quarrying operations for 2000
were adversely affected by the exceptionally heavy rainfall experienced
during that period. This factor also impacted on the sales volumes and
operating income of the distribution operations.
The reduced operating loss in the beneficiation operations was mainly due
to improved performances from NSP (construction slabs) and Impala Granite &
Stone (monumental slabs).
Net finance charges for the period decreased to R2,1 million from R3,9
million in 2000. This is mainly as a result of the decrease in total
interest bearing debt (including off-balance sheet debt and net bank
overdrafts) from R93,4 million in June 2000 to R52,1 million (December 2000
R60,2 million).
Foreign exchange gains for the six months amounted to R8,7 million with
an average exchange rate of R7,82 to the US dollar achieved during this
period.
Group earnings compared with June 2000 were negatively influenced by the
fact that tax losses in the South African quarrying companies are now fully
utilised. This resulted in an increase of R10,5 million in the group tax
charge to R12,2 million (June 2000 R1,7 million).
During the period agreement was reached to dispose of the Group's
interest in Granite Centre Beebe (Inc) (Quebec). This resulted in an
exceptional loss on sale of this investment of R3,2 million, but a cash
inflow of R4,7 million resulted from this transaction.
The debt equity ratio, including off-balance sheet financing, improved to
13,78% (December 2000 - 15,03%) and the net asset value per share increased
to 90,18 cents from 85,76 cents in December 2000.
OPERATIONAL REVIEW
Quarrying and Distribution
Total production for the period under review increased to 165 023 tons
compared with 147 856 tons for the comparable period in 2000. The percentage
recovery also increased to 10,13% compared with 9,67% in 2000. The main
reason for increased production being achieved was a return to a normal
rainfall pattern in the first six months compared with 2000.
The total volume sold was 59 105 m3 at an average CIF selling price of
$664 per cubic metre. This compares with 56 514 m3 at an average CIF selling
price of $667 per cubic metre for the first six months of 2000. The
depreciation of the Rand against the US dollar comparative to the first six
months of 2000 further contributed to higher turnover for the quarrying and
distribution operations.
Beneficiation
The improved performances of NSP and Impala Granite & Stone compared with
the first six months in 2000 was partly due to better block supplies
compared with the rain affected period in 2000, as well as improved
productivity and efficiency at these operations.
The contracting division completed several contracts during a difficult
six months and some contracts are currently in the final stages of
completion.
North America
The level of activity in the quarrying operations decreased compared with
2000, but the operations are cash positive. Stone Connection, the slab
warehouse situated in Atlanta, performed on the same level as in 2000.
PROSPECTS
The quarries are expected to continue their solid performance in the second
six months. The performance of the combined beneficiation division will
depend on the outcome of the contracts currently being finalised, but the
improved performance of the slab production units is expected to continue.
DIVIDEND
The board remains committed to the continuing reduction of debt and
accordingly no dividend is declared for the period under review.
Directors:
JRR Koch* (Chairman), MV Marcenaro** (CEO), GR Treagus (Managing
Director), M Pedretti, PJSJL Prinsloo, JW Houghton*, RA Koep*, DGK Fish*,
*Non-executive **Italian
MARLIN HOLDINGS LIMITED
(Registration number 1984/000634/06)
Share code: MNH ISIN: ZAE000012340
Interim results for the six months ended 30 June 2001
Marlin Holdings Limited's investment in Marcorp is 193 640 806 ordinary
shares being 57,3%. As a consequence, the only source of revenue of the
company is dividend income from Marcorp. No dividend was received from this
investment during this financial period. The results of Marcorp are reported
above and must be read in conjunction with this announcement.
CONSOLIDATED GROUP EARNINGS
Unaudited Audited
30 Jun 30 Jun 31-Dec
Rm's 2001 2000 2000
Attributable earnings per Marcorp 11,6 4,5 21,3
Earnings attributable to
outside shareholders (5,0) (1,9) (9,1)
Earnings attributable to
ordinary shareholders 6,6 2,6 12,2
Weighted average shares in issue ('000) 370 875 370 875 370 875
Total shares in issue ('000) 370 875 370 875 370 875
Earnings per share (cents) 1,79 0,70 3,31
Headline earnings per share (cents) 2,25 0,72 3,49
After adjustments for
Headline earnings per Marcorp 14,6 4,7 25,7
Earnings attributable to
outside shareholders (6,2) (2,0) (11,0)
8,4 2,7 14,7
27 September 2001
Directors: JRR Koch* (Chairman), MV Marcenaro (CEO)**, GR Treagus (Managing
Director), M Pedretti, JW Houghton*, RA Koep*, DGK Fish*.
*Non-executive **Italian
