| Tue 20 Nov 2001, 0:00 | | Omnia Holdings Limited - Interim Results For The S |
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September 2001
(Incorporated in the Republic of South Africa)
(Registration number 1967/003680/06)
("Omnia" or "the Group")
(Share code: OMN)
(ISIN code: ZAE000005153)
INTERIM RESULTS for the six month period ended September 2001
CONSOLIDATED INCOME STATEMENTS
Unaudited Unaudited Unaudited Audited
6 months 6 months 12 months 15 months
1/4/2000 to 1/4/2001 to 1/4/2000 to 1/1/2000 to
30/9/2000 30/9/2001 31/03/2001 31/03/2001
R'000
632 326 729 498 Revenue 1 479 266 1 767 314
(439 206) (514 253) Cost of sales (1 007 464) (1 219 364)
193 120 215 245 Gross profit 471 802 547 950
(158 863) (171 066) Operating costs (371 338) (466 199)
before depreciation
and net of other
income
34 257 44 179 EBITDA 100 464 81 751
(18 796) (19 471) Depreciation (34 523) (43 154)
15 461 24 708 Operating profit 65 941 38 597
Finance costs
(26 332) (20 529) - Net interest paid (47 859) (55 278)
(5 291) (8 938) - Forward cover (10 341) (12 467)
costs
6 530 16 716 - Net monetary gain 11 830 14 788
- - Income from 797 842
associates
(9 632) 11 957 Profit/(Loss) 20 368 (13 518)
before taxation
5 641 (121) Taxation (346) 12 042
(3 991) 11 836 Profit/(Loss) after 20 022 (1 476)
taxation
(108) (137) Minority interest (147) (183)
(4 099) 11 699 Net profit/(loss) 19 875 (1 659)
for the period
(10,7) 30,6 Headline, basic and 51,9 (4,3)
fully diluted
earnings/(loss) per
share (cents)
38 292 38 292 Weighted average 38 292 38 292
number
of shares in issue
(`000)
- - Dividends per share - 22
(cents)
1,30 2,15 Interest cover 2,10 1,48
CONSOLIDATED BALANCE SHEETS
Unaudited Unaudited Audited
30/9/2000 30/9/2001 31/03/2001
R'000
Assets
405 247 413 888 Fixed assets 411 485
1 780 1 284 Unlisted investments 1 784
and loans
766 113 764 986 Current assets 534 931
1 173 140 1 180 158 948 200
Equity and
liabilities
270 826 327 038 Ordinary 310 759
shareholders' equity
1 608 1 637 Minority interest 1 683
4 101 4 407 Deferred taxation 4 291
71 643 55 616 Long-term 49 336
liabilities
824 962 791 460 Current liabilities 582 131
1 173 140 1 180 158 948 200
358 662 342 869 Net interest-bearing 250 603
debt
7,11 8,58 Net asset value per 8,16
share (Rand)
Capital expenditure
21 686 15 833 Incurred 57 396
17 847 22 342 Authorised and 11 259
committed
18 416 9 773 Authorised but not 6 058
contracted for
CONSOLIDATED CASH FLOW STATEMENTS
Unaudited Unaudited Unaudited Audited
6 months 6 months 12 months 15 months
1/4/2000 to 1/4/2001 to 1/4/2000 to 1/1/2000 to
30/9/2000 30/9/2001 31/03/2001 31/03/2001
R'000
50 064 56 793 Cash generated from 165 048 145 523
operations
(32 769) (29 235) Finance costs and (59 940) (73 101)
taxation
(87 302) (99 149) (Utilised 86 783 28 308
by)/Generated from
working capital
(70 007) (71 591) (Utilised 191 891 100 730
by)/Available from
operations
(8 959) - Dividends paid (8 959) (17 368)
(78 966) (71 591) Cash (outflow) 182 932 83 362
/inflow from
operating activities
(23 584) (20 674) Cash outflow from (47 730) (55 040)
investing activities
(1 393) (2 027) Cash outflow from (27 639) (41 543)
financing activities
(103 943) (94 292) Net (increase) 107 563 (13 221)
/decrease in bank
overdrafts
(251 502) (167 637) Net bank overdrafts (275 200) (154 416)
at beginning of
period
(355 445) (261 929) Net bank overdrafts (167 637) (167 637)
at end of period
SEGMENTAL ANALYSIS
Unaudited Unaudited Unaudited Audited
6 months 6 months 12 months 15 months
1/4/2000 to 1/4/2001 to 1/4/2000 to 1/1/2000 to
30/9/2000 30/9/2001 31/03/2001 31/03/2001
R'000
632 326 729 498 Revenue 1 479 266 1 767 314
510 023 571 598 Fertilizer 1 241 772 1 474 093
(31 770) (42 663) - Less: Inter- (90 534) (113 698)
segmental sales
154 073 200 563 Explosives and 328 028 406 919
Chemicals
15 461 24 708 Operating profit 65 941 38 597
1 325 6 981 Fertilizer 34 885 8 197
14 136 17 727 Explosives and 31 056 30 400
Chemicals
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS' EQUITY
Share Non- Retained Total
capital distributable earnings
and premium reserves
Unaudited (R'000)
At 31 December 1999 66 388 23 938 211 018 301 344
Change in accounting
policy
- Leave pay provision - - (4 318) (4 318)
net of taxation
At 31 December 1999 66 388 23 938 206 700 297 026
restated
Net loss for the - - (21 534) (21 534)
period 1/1/2000 to
31/3/2000
Ordinary dividends - - (8 959) (8 959)
paid
Decrease in foreign - (1 363) - (1 363)
currency translation
reserve
At 31 March 2000 66 388 22 575 176 207 265 170
Net loss for the - - (4 099) (4 099)
period 1/4/2000 to
30/9/2000
Increase in foreign - 10 220 - 10 220
currency translation
reserve
Treasure shares (465) - - (465)
At 30 September 2000 65 923 32 795 172 108 270 826
Net profit for the - - 23 974 23 974
period 1/10/2000 to
31/3/2001
Increase in foreign - 16 369 - 16 369
currency translation
reserve
Transfer to retained - (268) 268 -
income of post-
acquisition
retained earnings and
reserves of associate
Treasury shares (410) - - (410)
At 31 March 2001 65 513 48 896 196 350 310 759
Net profit for the - - 11 699 11 699
period
Increase in foreign - 4 580 - 4 580
currency translation
reserve
At 30 September 2001 65 513 53 476 208 049 327 038
COMMENTS
OPERATING PERFORMANCE
The turnaround in the fertilizer industry, mooted in our previous
communication, is becoming evident. Market conditions are stable, good rains
have fallen and the raw material input costs remain at acceptable levels.
This turnaround is evidenced by both the improvement of some R22 million in
profit before tax for the Group and the 1% improved margin at the operating
profit line compared to the comparable six-month period last year.
It is pleasing to note that the interest cover at the half-year mark has
improved from 1,30 times to 2,15 times.
The insurance claim for loss of profits, relating to a component failure in
September 2000 has now been formulated and the response from the assessor is
being awaited. The claim has not been recognised in the results to the end
of September 2001.
FERTILIZER
Net revenue has increased by 10% over the comparable period last year, the
result of growth in the Group's value-added speciality products coupled with
price increases. The results are in line with the seasonality of the
business although slightly better than expectations.
Production at the no 3 granulation plant is running well, delivering
excellent quality product. The Speciality Fertilizer product range has found
growing popularity both in the local as well as export markets, resulting in
increased sales volumes and contributions.
As is generally known, there has been a considerable contraction of farming
activities in Zimbabwe. Despite these difficult conditions, earnings have
improved over the previous period. The Group's operations represent less
than 10% of the Zimbabwe fertilizer market and the impact of the contraction
has not been severe on the Group. Nevertheless, the Group is applying
caution and conservatism in its approach to Zimbabwe.
The situation in Zambia continues to improve with the Group's operations
having been rationalised and a number of new contracts being gained.
EXPLOSIVES AND CHEMICALS
Demand for both surface and underground explosives products of the company
has grown over the comparable six-month period last year. Export volumes of
explosives have also increased.
In line with the volume increases referred to above, revenue has increased
by 30% over the comparable period last year. Although the margin of 8,8% is
some 1,3% higher than that achieved for the 15 months to March 2001, they
are marginally lower than the margins achieved for the six months to
September 2000. This slight reduction is due to margins in the Industrial
Chemical industry having weakened.
Work on the aluminium trihydrate plant continued and the commercial size
reactor has now produced its first batch of saleable product. However,
further work is still required to resolve some quality issues.
PROSPECTS
The optimism expressed in the annual report is reconfirmed based upon the
favourable status of several fundamentals. These are, as mentioned above,
the stabilisation of raw material input costs at lower levels while the
price of urea, which is the basic selling price determinant for fertilizers,
also stabilised at levels that augur well for a recovery in fertilizer
margins. Furthermore maize prices are almost double those that prevailed
last year and, with the excellent soil moisture following steady rainfalls,
an increase in maize plantings is anticipated.
The drop in the ammonia price of course also impacts favourably on the
margins achieved in the explosives business paving a way to a recovery in
these, which, when combined with the growth in volumes being experienced
both locally and in other parts of Africa, augurs well for this business.
The Group is on track to achieve a substantial improvement in earnings for
the full year and it is anticipated that positive cash flows, after capital
expenditure, will be generated, which will be applied to the further
reduction of debt.
DIVIDENDS
No dividends have been declared. The dividend per share shown in the audited
15 months to 31 March 2001, were declared in respect of the year ended 31
December 1999 and paid out during the 15 month period ended 31 March 2001.
NOTES
These condensed consolidated interim financial statements are prepared in
accordance with AC127 - "Interim Financial Reporting" - and schedule 4 of
the South African Companies Act. The accounting policies used in the
preparation of the interim financial statements are consistent with those
used in the annual financial statements for the period ended 31 March 2001,
except as described below.
The Group adopted AC116 - "Employee Benefits". This has resulted in a change
in accounting policy and the recognition of a provision for leave pay not
previously accounted for. The effect of the restatement of comparative
figures has been included in the statement of changes in ordinary
shareholder's equity. The comparatives have accordingly been restated.
The future minimum lease payments under non-cancellable operating leases are
R3,463 million within one year and R13,388 million between two and five
years, giving a total of R16,851 million.
Taxation is disproportionate to the profit before taxation, mainly as a
result of the different treatment of interest for tax and accounting
purposes and the preferential tax treatment of certain projects, which have
been offset by hyperinflation adjustments.
These hyperinflation adjustments, as required by the accounting standard
AC124, result from the continued devaluation in the Zambian Kwacha and the
Zimbabwean Dollar. As in the past the most significant adjustment is that
which reduced the gross profit for the period by R15,7 million which is
offset by the net monetary gain of R16,7 million as disclosed. The net
impact on the Group results of all the hyperinflation adjustments is a net
loss of R1 million.
By order of the Board
NJ Crosse RB Humphris
Chairman Managing Director
Johannesburg
20 November 2001 Website: www.omnia.co.za
Registered Office: 1st Floor, Omnia House, 13 Sloane Street, Epsom Downs,
Bryanston
Transfer Secretaries: Ultra Registrars (Pty) Limited, 11 Diagonal Street,
Johannesburg 2001. PO Box 4844, Johannesburg 2000
Directors: NJ Crosse (Chairman), RB Humphris (Managing Director),
DL Eggers, MM Doyle, DJ King (alternate), NKH Fitz-Gibbon,
WT Marais (Deputy Chairman), Dr WT Marais (alternate), JG Pretorius,
PA Springett
Company Secretary: PR Janse van Rensburg
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