| Tue 13 Nov 2001, 0:00 | | Midas Limited - Interim Results |
|
MIDAS LIMITED
interim results
for the six months ended 30 September 2001
Group Income Statement
Unaudited Unaudited Audited
6 months 6 months 12 months
to September to September to March
2001 2000 % 2001
R'000 R'000 Change R'000
Revenue 465 399 473 731 (2) 914 578
- continuing
operations 465 399 455 002 2 867 095
- discontinued
operations - 18 729 47 483
Operating income 10 835 18 628 (42) 28 361
- continuing
operations 10 835 21 652 (50) 31 831
- discontinued
operations - (3 024) (3 470)
Net interest
received/(paid) 295 (393) (520)
Income before
exceptional items 11 130 18 235 (39) 27 841
Exceptional items - (9 979) (11 957)
Income before
taxation 11 130 8 256 35 15 884
Taxation (3 673) (975) (3 678)
Income after
taxation 7 457 7 281 2 12 206
Outside shareholders'
interest - - (36)
Earnings
attributable
to ordinary
shareholders 7 457 7 281 2 12 170
Earnings per
share (cents)
Earnings per share 25.1 24.5 2 40.9
Headline earnings
per share 24.7 51.0 (51) 73.0
Dividend per
share (cents) 9.0 9.0 0 25.0
Final No 50 of
9 cents
(2000 : No 48) 9.0 9.0 9.0
Interim No 49 of
16 cents - - 16.0
Dividend cover
- headline
earnings 2.7 5.7 (51) 2.9
Exceptional items
before
taxation
Loss on the disposal
and discontinuation
of businesses - 9 979 11 957
Tax relief attributable
to exceptional
items - 2 117 2 117
Headline earnings
reconciliation
Earnings per the
income statement 7 457 7 281 12 170
Adjusted for: (99) 7 880 9 541
Exceptional items - 9 979 11 957
(Profit)/loss
on sale
of plant and
equipment (99) 18 (299)
(99) 9 997 11 658
Tax relief
attributable
to adjustments - 2 117 2 117
Headline earnings 7 358 15 161 21 711
Group Abridged Balance Sheet
Unaudited Unaudited Audited
30 September 30 September 31 March
2001 2000 2001
R'000 R'000 R'000
Assets
Non-current assets 17 205 20 182 17 140
Property, plant and
equipment 13 786 17 239 13 721
Other investment 2 000 2 000 2 000
Deferred taxation 1 419 943 1 419
Current assets 306 172 307 064 283 101
Inventories 141 555 154 997 126 296
Trade and other
receivables 122 634 127 560 112 113
Cash and cash
equivalents 41 983 24 507 44 692
Total assets 323 377 327 246 300 241
Equity and liabilities
Capital and reserves 163 091 158 255 158 334
Ordinary shareholders'
funds 162 236 157 324 157 455
Outside shareholders'
interest 855 931 879
Non-current liability
Interest-bearing debt 300 - -
Current liabilities
Trade and other
payables 159 726 168 991 141 907
Short-term borrowings 260 - -
Total equity and
liabilities 323 377 327 246 300 241
Additional financial
information
Net operating
assets 121 408 133 748 113 642
Total assets 323 377 327 246 300 241
Trade and other
payables (159 726) (168 991) (141 907)
Short-term borrowings (260) - -
Cash and cash
equivalents (41 983) (24 507) (44 692)
Net asset value
per share (cents) 546 529 530
Capital expenditure 3 259 5 069 7 717
Replacement 2 959 3 622 5 539
Expansion 300 1 447 2 178
Ordinary shares (000)
Issued 29 734 29 734 29 734
Weighted average 29 734 29 734 29 734
Group Cash Flow Statement
Unaudited Unaudited Audited
6 months 6 months 12 months
to September to September to March
2001 2000 2001
R'000 R'000 R'000
Net cash (outflow)/
inflow from operating
activities (615) 2 005 12 362
Operating cash flow 13 401 12 981 24 127
Movement in working
capital (6 317) (8 939) (3 126)
Net interest received/
(paid) 295 (393) (520)
Taxation (paid)/
refunded (5 318) 1 032 (696)
Dividends paid (2 676) (2 676) (7 423)
Net cash (utilized)/
generated by investing
activities (2 630) 2 053 11 969
Capital expenditure (3 259) (5 069) (7 717)
Proceeds on disposal
of plant and equipment 629 1 765 1 939
Proceeds on disposal
of businesses - 5 357 17 747
Net cash generated/
(utilized) by financing
activities 536 (246) (334)
(Decrease)/increase in
outside shareholders'
interest (24) - (88)
Interest bearing debt
raised/(repaid) 560 (246) (246)
Net cash (outflow)/
inflow (2 709) 3 812 23 997
Cash and cash equivalents
at beginning of
period 44 692 20 695 20 695
Cash and cash equivalents
at end of period 41 983 24 507 44 692
Statement of Changes in Equity
Unaudited Unaudited
6 months 6 months Audited
to September to September March
2001 2000 2001
R'000 R'000 R'000
Balance at beginning
of period 157 455 152 719 152 719
Attributable earnings
for the period 7 457 7 281 12 170
Dividends (2 676) (2 676) (7 434)
Balance at end of
period 162 236 157 324 157 455
Commentary
Headline earnings per share declined from 51 cents to 25 cents for the six
months ended 30 September 2001 in spite of turnover growth of 2% from
continuing operations. The results were impacted by further investment in
establishing a best practice logistics business, significant costs to right
size operations and a margin decline. The staff complement has been reduced,
year on year by a further 17% to 1001.
Earnings before interest, taxation, depreciation and amortization (EBITDA)
were down 39% to R13.5 million. Whilst operating profit declined by 42%,
attributable earnings increased 2% to R7.5 million due to the losses on the
sale and closure of the heavy-duty operations which were accounted for in
the previous year.
The Group has cash on hand of R42 million as compared to the previous year-
end position of R44.7 million. The balance has been maintained through tight
working capital management, and has resulted in interest being received as
opposed to paid in the prior year.
Activity levels have declined due to a reduction in fuel sales and the
general economic slow down resulting in intense pressure on margins to
maintain/grow market share. Sales have increased by 2% against a market
deterioration of 4% illustrating aggressive price positioning and improved
availability and service levels. In addition, there has been a seasonality
shift, which has negatively impacted on the first half of the year but will
improve profitability in the second half of the year. The Group is now
predominantly a light duty business and as such the earnings are now more
weighted to the second half of the year.
Prospects
The Group is consistently delivering superior service, competitively priced
products and unique value-adding benefits to the automotive aftermarket and
this, linked to the seasonality shift to the second six months, and the
benefit of the established lower cost base should improve the results of the
second six months. Absolute focus on reducing the cost base continues to
offset the impact of lower margins.
Interim dividend no. 51
An interim dividend of 16 cents (2000 - 16 cents) per ordinary share has
been declared. The last day to trade "cum" the dividend in order to
participate in the dividend will be Friday, 7 December 2001.
The shares of Midas will commence trading "ex" the dividend from the
commencement of business on Monday, 10 December 2001 and the record date
will be Friday, 14 December 2001. The dividend is payable on 18 December
2001.
No dematerialisation or re-materialisation of share certificates will take
place between Wednesday, 5 December 2001 and Friday, 14 December 2001, both
days inclusive.
By order of the Board
W W Cooper (Chairman)
G L Odgers (Chief Executive Officer)
Johannesburg
13 November 2001
Midas Limited
(Registration number 1968/002260/06)
Share code: MDS ISIN code: ZAE000004420
Registered Office
Midas Building, 294 Brickfield Road, Meadowdale, Germiston
Postal Address
Private Bag X10028, Edenvale 1610
Transfer Secretaries
Mercantile Registrars Limited, PO Box 1053, Johannesburg 2001
Group Secretary: J G de Swardt
Directors
W W Cooper* (Chairman), E J Vorster* (Vice Chairman), G L Odgers (Chief
Executive Officer), S J Connelly*, N D Dyer, R D Gudegast* (German), D C
Hill, D Orwin*, M J Self, I W Espinoza (Alternate), S Le Roux (Alternate).
*Non-executive
E-mail: group@midas.co.za
Website: www.midas.co.za
