| Tue 30 Oct 2001, 0:00 | | Bearing Man Limited - Group Interim Report |
|
Share code: BRM ISIN number: ZAE000001137
(Reg. No. 1955/002109/06) `Bearman'
Africa's number 1 distributor for world class products and world class
service
Group interim report and dividend declaration
for the six months ended 30 September 2001
Revenue + 11% Operating profit + 5%
Profit before tax + 11% Earnings + 5%
Unaudited Audited
Six months Nine months
ended ended
30 September Inc 31 March
INCOME 2001 2000 (Dec) 2001
STATEMENT R000 R000 % R000
Revenue 346 270 313 330 11 524 665
Operating profit 35 452 33 778 5 59 620
Finance costs 6 885 5 624 22 10 312
Profit before abnormal items 28 567 28 154 1 49 308
Abnormal items - 2 412 (100) 1 442
Profit before taxation 28 567 25 742 11 47 866
Taxation 9 440 7 489 26 14 844
Earnings for the period 19 127 18 253 5 33 022
Determination of headline earnings
Earnings 19 127 18 253 5 33 022
Adjustments - after tax
where applicable
- Amortisation of goodwill 150 22 158
- Branch closure/restructure - 1 149 1 098
- Goodwill set-off against the
revaluation reserve in prior years
now reversed, due to properties
now being valued at cost - 118 -
- Loss on disposal of investment
in subsidiary - 46 -
- Loss on disposal of property,
plant and equipment - 148 176
Headline earnings 19 277 19 736 (2) 34 454
Shares in issue
Weighted average (000's) 105 641 105 641 105 641
At end of period (000's) 105 641 105 641 105 641
Weighted average
including diluted
shares (000's) 113 648 113 648 113 648
Headline earnings
per share (cents) 18,2 18,7 (3) 32,6
Earnings per share (cents) 18,1 17,3 5 31,3
Diluted headline
earnings per share (cents) 17,5 17,7 (1) 31,0
Diluted earnings per
share (cents) 17,3 16,6 4 29,9
Dividends per share
Interim (cents) 6,0 6,0 6,0
Final (cents) - - 7,0
Unaudited Audited
30 September 31 March
BALANCE 2001 2000 2001
SHEET R000 R000 R000
ASSETS
Non-current 72 161 64 714 62 885
Property, plant and equipment 57 324 49 008 48 408
Intangible assets 2 774 3 232 2 966
Long term receivable 596 856 747
Staff share scheme loans 8 684 8 763 8 766
Deferred tax asset 2 783 2 855 1 998
Current 344 884 333 578 327 665
Inventories 242 768 233 275 224 465
Trade and other receivables 102 116 100 303 103 200
417 045 398 292 390 550
EQUITY AND LIABILITIES
Shareholders' interest 180 831 155 189 169 099
Non-current liabilities 14 293 15 343 16 030
Long-term borrowings 10 157 11 207 11 894
Debentures 4 136 4 136 4 136
Current liabilities 221 921 227 760 205 421
Bank overdrafts 75 084 42 302 68 591
Short-term borrowings 2 011 3 134 2 011
Holding company - 35 532 -
Trade and other payables 144 826 146 792 134 819
417 045 398 292 390 550
Debt : equity (%) 50,5 62,1 51,2
Net tangible asset
value per share (cents) 168,5 143,8 157,3
Unaudited Audited
Six months Nine months
ended ended
30 September 31 March
CASH FLOW 2001 2000 2001
STATEMENT R000 R000 R000
CASH FLOW FROM OPERATING
ACTIVITIES
Cash receipts from customers 345 236 291 445 512 764
Cash paid to suppliers
and employees (308 521) (277 866) (464 382)
Cash flows from operating
activities 36 715 13 579 48 382
Finance costs paid (6 885) (5 624) (10 603)
Taxation paid (10 648) (2 216) (10 803)
Dividends paid (7 372) (6 288) (12 620)
Net cash inflow from
operating activities 11 810 (549) 14 356
CASH FLOW FROM INVESTING
ACTIVITIES
Acquisition of property,
plant and equipment to
maintain operations (15 612) (5 954) (10 682)
Proceeds on disposal of property,
plant and equipment 1 719 1 506 2 861
Net repayment of/(advance to)
non-current receivable 151 4 157 (243)
Business acquired (4 026) - (36 434)
Goodwill paid - (3 000) -
Net cash outflow from investing
activities (17 768) (3 291) (44 498)
CASH FLOW FROM FINANCING
ACTIVITIES
Repayment of long-term
borrowings (1 737) (1 498) (1 593)
Repayment from share trust 82 6 30
Amount due to holding company - 35 532 -
Net cash outflow from financing
activities (1 655) 34 040 (1 563)
NET (DECREASE)/INCREASE
IN CASH AND CASH EQUIVALENTS (7 613) 30 200 (31 705)
Cash and cash equivalents received
from business acquired 1 120 - -
Cash and cash equivalents at
beginning of period (68 591) (72 502) (36 886)
Cash and cash equivalents at
end of period (75 084) (42 302) (68 591)
Unaudited Audited
Six months Nine months
ended ended
30 September 31 March
CHANGES IN EQUITY 2001 2000 2001
STATEMENT R000 R000 R000
Stated capital
Balance at beginning and
end of period 57 031 57 031 57 031
Retained income
Balance at beginning of period 107 796 92 709 82 603
Prior year adjustment - (9 247) -
Cumulative adjustment following
adoption of AC 133 - (1 491) (1 491)
As restated 107 796 81 971 81 112
Earnings for the period 19 127 18 253 33 022
Dividends (7 395) (6 338) (6 338)
Balance at end of year 119 528 93 886 107 796
Compulsorily convertible
debentures
Balance at beginning and
end of period 4 272 4 272 4 272
Total shareholders' interest 180 831 155 189 169 099
COMMENTS
Over the last six months, Bearing Man has consolidated its position as
Southern Africa's leading value added supplier of bearings, power
transmission components, seals, belting, geared motor products and
associated engineering support services.
The acquisition of Invicta Bearings, in the latter half of last year, has
enabled the Group to enhance its already comprehensive product range, and to
offer industry a wider range of quality, premium branded products, via two
separate trading entities.
Results
Invicta Holding's acquisition of a majority shareholding in Bearing Man last
year resulted in a change to the accounting year-end. Consequently, these
results relate to the period April to September 2001.
Revenue growth of 11% is mainly attributable to the inclusion of Invicta
Bearings for the full six months of this year, as opposed to three months
last year. Operating profits have improved by 5% to R35,5 million, despite
the tough economic climate.
The purchase of undeveloped land, for R5,0 million, at the La Lucia Business
Park, is the primary cause of the increase in interest bearing debt, from
R86,6 million to R91,4 million. Debt to equity has improved steadily, from
62,1% in September 2000, to 51,2% in March 2001, and is currently 50,5%.
Further reductions are forecast by year-end.
With effect from 1 July 2001, Aftakas (Pty) Limited, was acquired for R4,0
million. The company assembles and supplies Power Take Off shafts, yokes and
components for the agricultural sector.
Accounting policies
The principal accounting policies as set out in the Group's 2001 annual
report have been consistently applied throughout the six month period under
review and are in agreement with the policies of the holding company.
Capital expenditure
Expenditure amounting to R11,0 million has been authorised but not
contractually committed.
Prospects
Trading in the second half of the year is not expected to show improvement,
given world events. However greater operating efficiencies, derived from the
rationalisation of administrative functions within the two trading entities,
together with the calculated introduction of complementary products, and the
judicious expansion into other markets in sub-Saharan Africa should enable
Bearing Man to show growth over last year.
For and on behalf of the board
M Rose-Innes GJ Till
Chairman Managing Director
Dividends
A final dividend of 7 cents (total 13 cents) in respect of the nine months
ended 31 March 2001 was declared and paid during the period. The directors
have, subsequent to the half year-ended, declared an interim dividend
(number 27) of 6 cents per share payable to shareholders recorded in the
books of the company at the close of business on the record date of Friday
23 November 2001. Last day to trade cum entitlement will be Friday 16
November 2001. Shares will trade ex-entitlement from Monday 19 November
2001. Dividends will be paid to members on Monday 26 November 2001.
Share certificates may not be dematerialised or rematerialised between
Monday 12 November and Friday 23 November, both days inclusive.
By order of the board
DC Bassett
Company Secretary 30 October 2001
Directors: M Rose-Innes (Chairman), GJ Till (Managing), A Goldstone, DI
Samuels, RE Sherrell
Company
Secretary: DC Bassett - results are available on - www.bearingman.co.za
Registered office Auditors Transfer secretaries
Bearing Man House PricewaterhouseCoopers Mercantile Registrars Limited
105 West Street 7th Floor, 11 Diagonal Street
Durban 4001 Johannesburg 2001
