| Fri 28 Sep 2001, 0:00 | | Transpaco Limited - Audited Group Results For The |
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TRANSPACO LIMITED Reg. No. 1951/000799/06
ISIN: ZAE000007480
Share Code No: TPC
AUDITED GROUP RESULTS FOR THE YEAR ENDED 30 JUNE 2001
GROUP PROFILE
Transpaco is a manufacturing and distribution company operating primarily in
the plastic and packaging industries with emphasis in :-
* Packaging for the retail, industrial, agricultural and mining sectors
* Scholastic and office stationery
* Plastic recycling
* Plastic raw material trading in local and export markets
* Injection moulding and vacuum forming
* Cardboard tubes and cores
* PVC sheet extrusion
RESULTS
Transpaco consists of nine self-standing manufacturing and trading
operations, seven of which performed profitably not-withstanding difficult
market conditions. In particular the Core, Sheeting and Polymer divisions
produced good results.
As announced on 13 June 2001, the restated figures for the year ended 30
June 2000 reflect the prior year adjustments and write-offs resulting from
the misstatements of certain assets and liabilities in Transpaco Flexibles
(Wynberg facility) and the stock adjustment at Transpaco Plastics.
Over the past two years the plastic packaging industry has experienced
difficult trading conditions with disappointing volume growth, escalating
raw material costs and shrinking margins. Furthermore, cheap imported
plastic bags also affected selling prices. Notwithstanding these factors,
turnover reached budgeted levels with an 11% increase over the previous year
after eliminating the turnover from the Bubble Pac division, which was sold.
The group experienced above normal increases in operating expenses primarily
as a result of :-
* The new Mpumalanga plastic bag factory not being fully operational during
the previous year
* Increased costs related to expansion of certain divisions
* The inclusion of the plastic industry into the Metal Engineering Industry
Bargaining Council resulting in wage increases well in excess of the
inflation rate
* Increased distribution expenses emanating from higher fuel costs.
In addition, depreciation increased measurably as a result of the purchase
of additional plant and equipment.
The debt/equity ratio is 76% (2000 : 45%). This increase was caused by :-
* The re-purchase of 2 602 777 ordinary shares at a cost of R4 424 720
* Losses at Transpaco Flexibles (Wynberg facility) and Transpaco Plastics
* Funding of capital expenditure.
PROSPECTS
The group's restructuring programme commenced in the latter part of the year
and it is anticipated that this process will be completed during the
forthcoming financial year. The strategy being implemented should have a
positive impact on the group's performance.
Transpaco is focussing on organic sales growth, improved gross profit
margins, tight expense management and possible rationalisation of its
manufacturing operations all of which will lead to improved productivity and
efficiency. Furthermore, effective asset management control has been
initiated which will improve the group's liquidity position and enhance
return on capital employed.
Transpaco's extensive involvement in post consumer plastic recycling places
the group in an ideal position to take advantage of South Africa's attention
to the environment with its emphasis on waste reclamation and re-use of
resources. With raw material prices at their current levels, demand for
Transpaco's recycled raw material is increasing both in the local and
African export markets.
The acquisition of the Jiffy brand adds another dimension to Transpaco's
portfolio of niche products.
The full benefit of the increase in production capacity will be felt in the
current year.
Accordingly, the group has budgeted for a substantial improvement in
earnings per share.
DIVIDEND
No dividend has been declared for the year under review.
STRATE
The company has been advised by The Johannesburg Securities Exchange South
Africa (JSE) that its shares will be transferred to the STRATE system on 22
October 2001 with trading for electronic settlement on 12 November 2001, for
settlement on 19 November 2001. Existing share certificates will no longer
be good for delivery for transactions entered into on the JSE on or after 12
November 2001.
TRIBUTE
On the 19 July 2001 the founder and past chairman of Transpaco, Sam
Abelheim, passed away peacefully. He was a person of integrity, a gentleman
and a gentle man. He will be sadly missed.
PN Abelheim
Chairman & Chief Executive
SL Chaitel
Financial Director
Other directors: AJ Aaron *; HA Botha; JS Botha; SR Bouzaglou; DR
Hilewitz *;
SI Jacobson *; JL Pamensky *; AC Salomon *
* non executive
Divisional Directors: CBS Harmse; KH Harris; GE Heroldt; LM O'Neill; C
Phinn; AT Norris; C Taylor; JE Watters
Auditors: Ernst & Young
Registered Office
331 Sixth Street
Wynberg
Sandton
Transfer Secretaries
Mercantile Registrars Ltd
Diagonal Street
Johannesburg
CONSOLIDATED INCOME STATEMENT
RESTATED
12 MONTHS 12 MONTHS 12 MONTHS
R'000 Notes June 2001 June 2000 June 2000
Turnover 250 675 237 547 238 435
Cost of sales 169 881 154 000 149 182
Gross profit 80 794 83 547 89 253
Operating Costs 68 257 55 743 55 129
Operating income before
depreciation
& finance charges 12 537 27 804 34 124
Depreciation 7 439 5 530 5 530
Finance charges 5 999 5 230 5 230
(Loss) / Income before taxation (901) 17 044 23 364
Taxation (237) 5 571 6 818
(Loss) / Income after taxation (664) 11 473 16 546
Exceptional item 1 516 14 468 14 468
(Loss) / Income after taxation
& exceptional item (148) 25 941 31 014
Adjustment - prior years - 392 392
(Loss) / Income attributable
to shareholders (148) 26 333 31 406
Dividend - 3 271 3 271
Retained (loss) / income
for the period (148) 23 062 28 135
No. of ordinary shares
in issue (000's) 30 109 32 711 32 711
(Loss) / earnings per
share (cents) 2 (0,5) 79,3 94,8
(Loss) / headline
earnings per share (cents) 3 (2,2) 35,1 50,5
Dividend per share (cents) - 10.0 10.0
interim - 5.0 5.0
final - 5.0 5.0
Dividend cover - 3.5 5.0
CONSOLIDATED BALANCE SHEET
RESTATED
R'000 Notes June 2001 June 2000 June 2000
ASSETS
Non-current assets 66 058 56 505 57 087
Property, plant and equipment 63 259 55 505 55 854
Intangibles 1 069 951 1 184
Deferred taxation 1 730 49 49
Current Assets 82 226 79 976 85 584
Inventories 22 029 25 047 29 665
Accounts receivable 56 499 54 468 55 458
Taxation 3 657 424 424
Cash resources 41 37 37
TOTAL ASSETS 148 284 136 481 142 671
EQUITY AND LIABILITIES
Shareholders funds 62 273 66 846 71 919
Non current liabilities 21 284 15 709 15 709
Deferred taxation 1 443 1 800 1 800
Current liabilities 63 284 52 126 53 243
Accounts payable 36 432 35 878 35 678
Current portion long
term liabilities 6 272 4 418 4 418
Bank overdraft 19 874 9 974 9 974
Taxation 706 220 1 537
Shareholders for dividend - 1 636 1 636
TOTAL EQUITY AND LIABILITIES 148 284 136 481 142 671
Number of shares in issue (000's) 32 711 32 711 32 711
Repurchase of shares (000's) 4 2 602 - -
Ranking number of shares (000's) 30 109 32 711 32 711
Net asset value per share (cents) 206 204 220
Notes:1 Profit on sale of Bubble Pac division
2 Loss after taxation and exceptional items of R148000 is based on
30 108 368 ordinary shares in issue.
3 Loss after taxation and before exceptional item of R664 000 is
based on 30 108 368 ordinary shares in issue.
4 A wholly owned subsidiary of Transpaco purchased 2 602 777
Transpaco shares with effect from 1 October 2000, in terms of the
specific authority approved by shareholders on 17 January 2001.
ABRIDGED CONSOLIDATED CASH FLOW
RESTATED
R'000 June 2001 June 2000 June 2000
Operating cash flow 12 481 28 187 34 577
Proceeds Bubble Pac 516 14 468 14 468
Movement in working capital 1 540 (4 926) (10 734)
Net interest paid (5 999) (5 230) (5 230)
Taxation paid (4 549) (8 989) (8 989)
Dividend paid (1 635) (3 926) (3 926)
Cash generated from operating activities 2 354 19 584 20 166
Net inflow from financing activities 3 005 9 689 9 689
Net fixed assets acquired (15 255) (20 081) (20 663)
(9 896) 9 192 9 192
Opening net cash resources (9 937) (19 129) (19 129)
Closing net cash resources (19 833) (9 937) (9 937)
STATEMENT OF CHANGES IN EQUITY
RESTATED
R'000 June 2001 June 2000 June 2000
Opening balance 66 846 43 784 43 784
Earnings attributable to shareholders (148) 26 333 31 406
Repurchase of share capital
& share premium (4 425) - -
Dividend paid - (3 271) (3 271)
Closing balance 62 273 66 846 71 919
