| Mon 12 Nov 2001, 0:00 | | Mettle Interim Report For The Six Months Ended 30 |
|
METTLE LIMITED
ISIN CODE : ZAE000028569
JSE CODE : MEL
HEADLINE EARNINGS UP 33,5%
ANNUALISED RETURN ON EQUITY FOR THE
PERIOD 29,5%
HEADLINE EARNINGS PER SHARE UP 12,3%
Managing Director's report
Mettle has steered a firm course through the continued economic and market
turbulence to produce solid and sustained results for the period.
Financial results
Our performance reflects a history of steady growth. Headline earnings are
up 33,5 % to R42,6 million for the six months to September 2001. Headline
earnings per share are up 12,3%, on the corresponding period last year. This
figure reflects the diluting impact of the Greenwich transaction which saw a
significant increase in the weighted average number of shares in issue.
Return on Equity for the period is at a good 29,5%.
Experience and strong management continuity, underpinned by the expertise of
our people, is the bedrock on which our company's sustained success is
based. Market awareness and strong technical skills allow us to both
anticipate and adapt to market change, ensuring our continuing leadership in
the development of sophisticated and innovative financial solutions.
In response to our changing environment, our business focus has steadily
been shifting away from the provision to corporates of traditional
structured financial solutions. Whilst structured finance still constitutes
a significant portion of our income, we have successfully realigned our
focus towards products in related areas.
Credit Rating
As a testament to the soundness of our risk procedures and business
practices, we have maintained our short term A2 credit rating.
Dividend Declaration
Notice is hereby given that the board has declared an interim dividend of
1,40 cents per ordinary share in respect of the six months ended 30
September 2001. The dividend will be paid on Monday, 10 December 2001.
To comply with the procedures of STRATE the last day to trade in the shares
for purposes of entitlement to the interim dividend is Friday, 30 November
2001. The shares will commence trading ex dividend on Monday, 3 December
2001 and the record date will be Friday, 7 December 2001.
Shareholders may not dematerialise or re-materialise their shares between
Monday, 26 November 2001 and Friday, 7 December 2001 (both days inclusive).
Business as usual
Our decision to de-list was taken after careful evaluation of stakeholder
interests. In reverting to an unlisted company, we will, inter alia, be
better positioned to ensure the appropriate incentivisation and retention of
our team - Mettle's greatest asset.
The de-listing will have no material impact on operations and the cash drain
implications will not be significant. Mettle will continue to apply the
strictest corporate governance procedures through its reporting and
management practices.
I have every confidence that Mettle will continue to gain market share as it
moves steadily towards its goal of becoming Southern Africa's premier
financial solutions house.
G M O Connor
Managing Director
7 November 2001
METTLE LIMITED AND ITS SUBSIDIARIES
ABRIDGED BALANCE SHEETS
AS AT 30 SEPTEMBER 2001
Unaudited Unaudited Audited
30/09/2001 30/09/2000 31/03/2001
R R R
ASSETS
Non-current assets
Fixed assets 17,698,854 6,953,022 15,934,065
Investments and loans 39,700,585 58,196,201 67,435,689
Deferred tax 3,408,026 525,118 3,558,860
Current assets
Trading assets 1,516,130,440 802,811,626 980,937,809
Short term receivables 51,991,082 71,432,318 102,984,578
Cash and cash equivalents 249,909,237 201,756,066 248,280,961
Total assets 1,878,838,224 1,141,674,351 1,419,131,962
EQUITY AND LIABILITIES
Capital and reserves
Total shareholders' funds 310,077,905 213,550,984 309,405,427
Non-current liabilities
Net financial liabilities 107,295,393 132,374,730 113,665,840
Deferred tax 4,183,033 7,039,324 5,905,903
Current liabilities
Short term payables 25,456,587 35,185,927 53,537,025
Trading liabilities 1,420,202,275 748,567,394 930,225,356
Taxation 11,623,031 4,955,992 6,392,411
Total equity and liabilities 1,878,838,224 1,141,674,351 1,419,131,962
INCOME STATEMENTS
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2001
Unaudited for the Unaudited for the Audited for
six months ended six months ended the
30/09/2001 30/09/2000 year ended
31/03/2001
R R R
Revenue 106,724,024 55,052,580 139,692,407
Operating Income 99,028,283 50,834,080 110,510,884
Net financing income 6,902,585 8,273,136 18,016,217
Income from investments 793,156 (4,054,636) 11,165,306
Less: Operating Expenses 61,425,422 21,726,376 72,028,859
Profit before exceptional
item and taxation 45,298,602 33,326,204 67,663,548
Exceptional item (4,582,627) - 36,196,238
Profit before taxation 40,715,975 3,326,204 103,859,786
Taxation 3,286,660 1,402,233 3,014,699
Profit for the period 37,429,315 31,923,971 100,845,087
Exceptional item 4,582,627 - (36,196,238)
Loss on the sale of fixed assets
(net of taxation) 617,809 - 1,883,493
Headline earnings 42,629,751 31,923,971 66,532,342
Earnings per share (cents)
- Profit 6.07 6.16 19.85
- Headline 6.92 6.16 13.10
Dividends per share (cents)
- interim 1.40 1.08 1.08
- final - - 1.22
Number of shares (million)
- in issue (excluding treasury
shares) 599.3 518.4 661.4
- weighted average 616.1 518.4 507.9
ABRIDGED CASHFLOW STATEMENT
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2001
Unaudited for the Unaudited for the Audited for the
six months ended six months ended year ended
30/09/2001 30/09/2000 31/03/2001
R R R
Net cash flow generated by
operating activities 19,664,671 44,258,210 34,377,024
Net cash flow generated
by / (utilised in) investing
activities 4,156,000 (39,813,708) 87,741,894
Net cash flow utilised in
financing activities (22,192,395) - (83,149,521)
Net increase in cash
and cash equivalents 1,628,276 4,444,502 38,969,397
Cash and cash equivalents
at beginning of period 248,280,961 197,311,564 209,311,564
Cash and cash equivalents
at the end of period 249,909,237 201,756,066 248,280,961
ABRIDGED STATEMENTS OF CHANGES IN EQUITY
FOR THE 6 MONTHS ENDED 30 SEPTEMBER 2001
Unaudited for the Unaudited for the Audited for the
six months ended six months ended year ended
30/09/2001 30/09/2000 31/03/2001
R R R
Equity at beginning of
period 309,405,427 187,225,003 187,225,003
Change in share capital
and share premium (35,413,593) - 27,732,883
Changes in
non-distributable
reserves 6,723,684 22,336 (777,220)
Net profit attributable to
ordinary shareholders 37,429,315 31,923,971 100,845,087
Dividends paid/declared (8,066,928) (5,620,326) (5,620,326)
Equity at end of period 310,077,905 213,550,984 309,405,427
NOTES
The accounting policies used are consistent with those used in the previous
year and those disclosed in the group's most recent annual financial
statements.
The exceptional item is due to the repricing of employee share options to
70c a share and the resultant impairment of the long term loan to the share
incentive trust.
With reference to the circular issued by Mettle Limited dated 6 July 2001,
the group repurchased 38 381 219 shares for a consideration of R21 109 670.
The amount is included in "cash flow utilised in financing activities".
Headline earnings per share and earnings per share are calculated by
dividing headline earnings and earnings after tax by the weighted average
number of shares in issue during the period.
