| Tue 13 Nov 2001, 0:00 | | Argent Industrial Limited - Unaudited Interim Resu |
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Reg no 1993/002054/06
(Incorporated in the Republic of South Africa)
("Argent")
Share Code :_ART ISIN_CODE : ZAE 000019188
Unaudited Interim Results
for the six months ended 30 September 2001
REVENUE UP 37%
ATTRIBUTABLE EARNINGS UP 26%
HEADLINE EARNINGS UP 15%
Abridged Consolidated
Balance Sheet for the six months
ended 30 September 2001
Unaudited at Unaudited at Audited
30 Sept. 30 Sept. year ended
2001 2000 31 Mar 2001
R000
ASSETS
Non-current assets
Property, plant and equipment 98 991 100 520 97 434
Intangibles 641 712 675
Employee share incentive scheme 831 0 987
100 463 101 232 99 096
Current assets
Inventories 47 270 41 983 45 025
Trade and other receivables 88 738 64 512 57 897
Taxation 67
Bank balance and cash 2 997 0 358
139 005 106 495 103 347
Total assets 239 468 207 727 202 443
EQUITY AND LIABILITIES
Capital and reserves
Share capital and premium 5 129 1 966 3 023
Reserves 26 013 29 754 26 013
Accumulated profits 94 935 81 632 87 653
Ordinary shareholders' funds 126 077 113 352 116 689
Minority interest 3 905 5 658 5 325
Total shareholders' funds 129 982 119 010 122 014
Non -current liabilities
Long-term borrowings 17 810 21 354 18 856
Deferred taxation 3 593 2 017 3 550
21 403 23 371 22 406
Current liabilities
Trade and other payables 76 771 53 626 48 961
Taxation 935 736 0
Shareholders for dividends 3 109 2 358 2 429
Bank overdraft 0 1 754 0
Current portion of long-term borrowings 7 268 6 872 6 633
88 083 65 346 58 023
Total equity and liabilities 239 468 207 727 202 443
Net asset value per share (cents) 284 288 288
Statement of Changes
in Equity for the six months
ended 30 September 2001
Share Share Reserve on Accumul- Total
Capital Premium subsidiary ulated
Acquisitions profits
R000
Balance as at
31 March 2000 1 966 31 267 75 565 108 798
Issue of share capital 58 999 1 057
Reversal of revaluation
of properties (5 254) (5 254)
Profit for the year
ended 31 March 2001 16 946 16 946
Dividends (4 858) (4 858)
Balance as at
1 April 2001 2 024 999 26 013 87 653 116 689
Issue of share capital 196 1 910 2 106
Profit for the period
ended 30 September 2001 10 626 10 626
Dividends (3 344) (3 344)
Balance as at
30 September 2001 2 220 2 909 26 013 94 935 126 077
Abridged Consolidated
Income Statement for the six
months ended 30 September 2001
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 March
30 Sept. 2001 30 Sept. 2000 2001
R000
Revenue 173 281 126 210 283 221
Operating profit before finance charges 14 395 13 205 26 049
Net finance charges 1 830 2 736 5 463
Net profit before taxation 12 565 10 469 20 586
Taxation 1 257 1 048 2 977
Net profit after taxation 11 308 9 421 17 609
Earnings attributable to outside
shareholders 682 995 663
Earnings attributable to ordinary
shareholders 10 626 8 426 16 946
Attributable earnings per share (cents) 24,8 21,4 42,7
Headline earnings per share (cents) 24,8 21,6 44,9
Dividends per share (cents) 7,0 6,0 12,0
Shares in issue (000)
- at end of period 44 409 39 311 40 486
- weighted average for the year 42 774 39 311 39 703
Calculation of Headline Earnings (R000)
Attributable earnings 10 626 8 426 16 946
Adjustments for:
Profit on disposal of property,
plant and equipment (23) (850)
Profit on sale of business (57)
Loss on disposal of property,
plant and equipment 65 1 789
Headline adjustments (23) 65 882
Headline earnings 10 603 8 491 17 828
Abridged Consolidated
Cash Flow Statement for the six
months ended 30 September 2001
Unaudited Unaudited Audited
six months six months year ended
ended ended 31 March
30 Sept. 2001 30 Sept. 2000 2001
R000
Cash generated from operations 12 357 12 225 24 557
Interest received 1 204 1 347 3 207
Interest paid (3 034) (4 083) (8 670)
Dividends paid (2 664) (786) (3 215)
Taxation paid (212) (1 421) (2 621)
Cash flows from operating activities 7 651 7 282 13 258
Cash flows from investing activities (6 707) (8 642) (12 656)
Cash flows from financing activities 1 695 10 160
Net increase/(decrease) in cash and
cash equivalents 2 639 (1 350) 762
Cash and cash equivalents at
beginning of year 358 (404) (404)
Cash and cash equivalents at
end of year 2 997 (1 754) 358
COMMENTRY
The Group continues to deliver outstanding shareholder value and has more
than a satisfactory order book to maintain its turnover levels.
Salient features of the results
Attributable earnings increased by 26% to R10,6 million (2000 - R8,4
million)
Headline earnings per share increased by 15% to 24,8 cents per share over
the same period
(2000 - 21,6 cents)
Group gearing decreased to 19,3% (2000 - 23,7%)
Divisional Performance
Steel and Steel Processing
The Groups steel companies have had an excellent first six months. Koch's
Cut &_Supply Steel Centre has expanded its operations by opening a new
company in Richards Bay. The Phoenix Steel Empangeni operation will move to
Richards Bay over December 2001. Phoenix Steel Gauteng and Joules Decoiling
will be merging into one company in April 2002. The consolidation will free
up resources to concentrate on better stock management and transport
utilisation.
Fabrication
Bavarian Metal Industries has had a satisfactory first six months and has a
full order book. Hendor Mining Supplies has maintained its market share and
will benefit from the increased platinum activity in the Burgersfort area.
Precision Engineering
Giflo Engineering's results were affected by the Motor Industry strike,
however, they managed to break their all time record in October 2001. Giflo
has ordered a new state of the art stainless steel pipe bender from the
United Kingdom. The new machine will be commissioned in February 2002. Giflo
has also acquired 9977m3 of vacant land adjacent to its existing facility.
Giflo will be doubling its manufacturing capacity over the next two years to
keep up with its ever increasing exports.
New Joules Engineering North America Inc. was relatively quiet during the
first six months but has subsequently filled its order book up to February
2002 and currently has outstanding tenders to the value of US 1,6 million.
NWN has had an excellent jump-start for the first six months and looks
forward to a very successful year.
Concrete and Stone
The record rainfalls in the Western Cape have had a negative effect on
Megamix. Megamix has however managed to secure a five-year agreement with
Portnet Properties to set up a batch plant on the Cape Town Waterfront. The
position of the batch plant will give the company a competitive edge due to
its proximity to the Waterfront Development.
Materials Handling
Barker Flynn has secured two contracts to the value of R82 million from
Kumba Resources Limited and an additinal R16,4 million from Kusasa Bulk
Terminals. All three projects are in the Richards Bay/Empangeni area and are
scheduled for completion in September 2002. Barker Flynn's R49 million
contact with Kusasa Bulk Terminals was finished in August 2001, a month
ahead of the schedule.
Prospects
The Group enters the future with confidence. Our focus on the exports market
will continue. The Group is properly geared to deliver above average return
on shareholders equity and has a platform for future growth.
Dividend
An interim dividend of 7 cents per share has been declared, payable on 11
February 2002 to shareholders registered as such at close of business on 8
February 2002, being the record date in order to participate in such
dividend.
The last day to trade cum div is Friday 1 February 2002. The share will
trade ex div on Monday 4 February 2002.
There will be no rematerialisation/dematerialisation between Monday, 28
January 2002 and Friday, 8 February 2002, both days inclusive.
On behalf of the board
T.R. HENDRY CA(SA) Germiston
Managing Director 14 November 2001
Directors: T. Scharrighuisen (Chairman) T.R. Hendry (Managing) M.J.
Antonic (Financial) P.A. Day
Registered Address:
13 Jack Pienaar Street
Germiston South
Extension 7
Germiston
1411
Tel:_(011) 873-1149
(PO Box 14461, Wadeville 1422)
Transfer Secretary:
Ultra Registrars
Ground Floor
11 Diagonal Street
Johannesburg, 2001
(PO Box 4844, Johannesburg 2000)
Auditor:
Etchells James Kruger
&_Associates Inc.
Sponsor:
LPC Manhattan
LPC Manhattan Sponsors (Pty) Ltd
(Registration number 1999/024792/07)
Website: www.argent.co.za
