| Fri 23 Nov 2001, 0:00 | | Ozz Limited - Interim Results |
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Interim results For the six months ended 30 September 2001
Income statement
Six months ended Year ended
30 September 31 March
2001 2000 2001
Rm Rm Change Rm
(unaudited)(unaudited) % (audited)
Turnover 265,4 235,7 +13 466,7
Operating income 30,8 27,3 +13 54,2
Net finance income 0,7 1,6 3,2
Distribution Grayprop Units 3,8
Income before taxation 35,3 28,9 +22 57,4
Taxation (9,8) (8,4) (14,3)
Headline earnings 25,5 20,5 +24 43,1
Revaluation of properties to
selling price (22,2)
Revaluation of investment to
market value 6,4
Ordinary earnings 31,9 20,5 20,9
Shares in issue
(weighted number)
(million)* 18,6 23,4 20,9
Headline earnings per share
(fully diluted) (cents)* 136,1 87,6 +55 205,8
Ordinary earnings per share
(fully diluted) (cents)* 171,5 87,6 100,1
Ordinary dividend per
share (cents) 23,5 18,0 +31 90,0
Dividend cover (times) 5,8 4,9 2,3
Segmental analysis
Six months ended Year ended
30 September 31 March
2001 2000 2001
Rm Rm Change Rm
(unaudited)(unaudited) % (audited)
Turnover
- Engineering 265,4 228,8 +16 452,8
- Property investment 6,9 13,9
265,4 235,7 466,7
Operating income
- Engineering 30,8 25,3 +21 50,6
- Property investment 2,0 3,6
30,8 27,3 54,2
Cash flow statement
Six months ended Year ended
30 September 31 March
2001 2000 2001
Rm Rm Rm
(unaudited)(unaudited)(audited)
Cash generated by
operating activities 41,6 28,3 59,0
Cepcor acquisition (15,0) (15,0)
Finance costs (2,4) (2,9) (4,3)
Taxation paid (4,2) (3,5) (12,0)
Cash available from
operating activities 35,0 6,9 27,7
Dividends paid
- preference (0,3) (0,3) (0,6)
- ordinary (13,2) (17,2) (20,4)
Net cash flow from
operating activities 21,5 (10,6) 6,7
Net cash outflow from
investing activities (3,2) (5,2) (8,0)
Maintain operations (3,2) (5,2) (5,6)
Expand operations (2,4)
Sale of properties 54,7
Listed investment (54,7)
Financing activities (3,1) (1,4) (35,0)
Preference shares redeemed (0,2) (0,3) (0,3)
Borrowings raised, net 17,6 17,5
Buyback of shares (2,9) (18,7) (52,2)
Net cash inflow/(outflow) 15,2 (17,2) (36,3)
Balance sheet
30 September 31 March
2001 2000 2001
Rm Rm Rm
(unaudited)(unaudited)(audited)
ASSETS
Non-current assets 197,9 221,9 194,2
Tangible fixed assets 106,8 191,9 164,2
Financial assets 30,0 30,0 30,0
Listed investment 61,1
Current assets 239,9 226,9 211,8
Inventories 79,2 75,4 80,3
Trade and other receivables 123,1 110,0 109,1
Cash and cash equivalents 37,6 41,5 22,4
Total assets 437,8 448,8 406,0
EQUITY AND LIABILITIES
Equity capital and reserves 324,3 345,6 309,1
Stated capital 89,3 121,7 92,3
Non-distributable reserves 44,1 59,6 37,6
Distributable reserve
- retained income 211,8 180,9 199,9
345,2 362,2 329,8
Shares repurchased, held
by subsidiary (25,5) (21,4) (25,5)
Ordinary shareholders' interest 319,7 340,8 304,3
Preference share capital
and premium 4,6 4,8 4,8
Non-current liabilities 34,7 34,3 35,5
Long-term liability 26,0 26,0 26,0
Deferred taxation 8,7 8,3 9,5
Current liabilities 78,8 68,9 61,4
Taxation 11,0 8,4 4,6
Trade and other payables 67,8 60,5 56,8
Total equity and liabilities 437,8 448,8 406,0
Capital expenditure
- incurred 4,4 5,2 8,0
- contracted 1,6 7,0 1,0
- authorised but not contracted 6,1 10,8 10,0
Number of shares in issue (millions)
- ordinary* 18,1 22,0 18,3
- convertible preference 0,4 0,5 0,5
Net asset value per
share (cents)* 1 751 1 517 1 646
Current asset ratio 3,0 3,3 3,5
Return on average
capital employed 26,9 21,5 19,8
The same accounting policies and method of computation are followed in the
interim financial statements as compared with the most recent annual
financial statements in all material respects and comply with GAAP.
*After taking into account buyback of shares
Statement of changes in equity
Six months ended Year ended
30 September 31 March
2001 2000 2001
Rm Rm Rm
(unaudited)(unaudited)(audited)
Balance at beginning of period 309,1 361,5 361,5
Net payments not recognised
through income statement (3,2) (18,9) (74,5)
Ordinary shares bought back (3,0) (18,6) (52,2)
Preference shares redeemed (0,2) (0,3) (0,3)
Revaluation of land and buildings (22,0)
Revaluation of investment to
market value 6,4
Headline earnings 25,5 20,5 43,1
Ordinary dividends (13,2) (17,2) (20,4)
Preference dividends (0,3) (0,3) (0,6)
Balance at end of period 324,3 345,6 309,1
Comments
Nature of business
Ozz is a manufacturer and distributor of wearparts and mining consumables in
South Africa and exports these products to eighteen countries around the
globe.
Financial results
Your directors are pleased to report excellent results for the half-year
under review. Headline earnings grew by 24% with headline earnings per share
rising by 55%, highlighting the benefit of the share buybacks implemented
during the previous financial year. Turnover and operating income are
attributable to the engineering businesses whereas the comparative figures
for the previous half-year include property investment. Our major property
investments were sold to Allan Gray Property Trust ("Grayprop") with effect
from 31 March 2001. Engineering turnover and operating income grew by 16%
and 21% respectively. This much improved performance was achieved by an
increase in the level of business activity and the higher rand proceeds of
export sales. In addition further value was added through production
efficiencies and an expanding portfolio of new products. Investment income
comprises the dividend distributed by Grayprop which was 90% higher than the
comparable operating income from direct property investment. Cash generated
by operating activities was R41,6 million (2000: R28,3 million) and was 35%
higher than operating income, a notable feature of these robust results. The
board has declared an interim ordinary dividend of 23,5 cents per share
compared to 18,0 cents per share last half-year.
Prospects
The successful implementation of ongoing strategies to realise operating
synergies and detailed attention to asset management is expected to produce
an encouraging six months ahead.
The weakened rand will have a favourable impact on export sales. These
promising conditions could change as the global economic outlook is
uncertain and becoming more complex following the September 11 tragedy in
the United States of America. The group has a solid balance sheet and
powerful cash flow which enables us to extract maximum value from the
markets we serve.
Strate
The dematerialisation date for Ozz ordinary shares was Monday,14 May 2001.
As of 4 June 2001, electronic settlement of trades commenced for the first
time and shareholders are reminded that Ozz ordinary shares must now be in
electronic form before they may be traded on the
JSE Securities Exchange South Africa.
Dividend declaration
Notice is hereby given that an interim ordinary dividend of 23,5 cents per
share has been declared in respect of the six months ended 30 September
2001, payable on 14 January 2002. The last day to trade to participate in
the dividend will be 4 January 2002 and the ordinary shares will commence
trading ex the dividend from the commencement of business on 7 January 2002
and the record date will be 11 January 2002.
Certificated shareholders may not dematerialise their share certificates
between Friday,
28 December 2001, and Friday, 11 January 2002, both dates inclusive.
By order of the board
I H STERN
Secretary
26 November 2001
OZZ LIMITED
Incorporated in the Republic of South Africa
Registration No 1946/024058/06 Share code: OZZ ISIN Code: 000005211
Registered office: 53 Central Street, Houghton Estate, 2198
Transfer secretaries: Mercantile Registrars Limited, 11 Diagonal Street,
Johannesburg, 2001
Directors: G Zulberg (Chairman), J Becker, M Becker, B J R Burt, K E
Haskell, C L Lambooy,
E Magid JP, I H Stern, C Zulberg Secretary: I H Stern
