| Wed 28 Nov 2001, 0:00 | | Eureka Industrial Limited - Unaudited Results For |
|
August 2001
EUREKA INDUSTRIAL LIMITED
(Registration number 1938/010958/06)
Share JSE code: EUR ISIN #: ZAE000002523
UNAUDITED RESULTS FOR THE 6 MONTHS ENDED 31 AUGUST 2001
GROUP BALANCE SHEET
6 months ended 6 months ended 12 months ended
31 August 2001 31 August 2000 28 February 2001
Unaudited Unaudited Audited
R'000s R'000s R'000s
Equity and liabilities
Shareholders' equity 65,035 63,424 58,130
Non-current liabilities 16,560 23,070 24,138
Interest bearing borrowings 14,798 21,986 22,376
Deferred taxation 1,762 1,084 1,762
Current liabilities 59,810 122,101 38,667
Interest bearing borrowings 55,661 101,735 32,391
Trade and other payables 4,149 20,366 6,276
Total equity and liabilities 141,405 208,595 120,935
Assets
Non - current assets 94,479 150,884 76,376
Tangible assets 2,345 2,647 2,530
Investments 92,134 148,237 73,846
Current assets 46,926 57,711 44,559
Inventories 16,272 17,027 16,667
Bank and cash 812 619 160
Trade and other receivables 29,842 40,065 27,732
Total assets 141,405 208,595 120,935
CASH FLOW STATEMENT
Cash flows from operating
activities (1,537) (8,721) (19,582)
Cash flows from investing
activities (13,503) (941) 78,415
Cash flows from financing
activities 15,692 9,563 (59,391)
Net increase in cash and
cash equivalents 652 (99) (558)
Cash and cash equivalents
at beginning of the period 160 718 718
Cash and cash equivalents
at end of the period 812 619 160
Ordinary Shares
Number of shares in issue
('000s) 2,400 2,400 2,400
Earnings per share (cents) 287.7 14.5 870.9
Headline earnings per
share (cents) 267.2 14.5 (1,028.8)
Net tangible asset value
per share (cents) 2,706 2,638 2,418
GROUP INCOME STATEMENT
6 months ended 6 months ended 12 months ended
31 August 2001 31 August 2000 28 February 2001
Unaudited Unaudited Audited
R'000s R'000s R'000s
Revenue 15,831 16,743 30,405
Operating profit/(loss) 9,140 5,802 (9,740)
Depreciation (188) (198) (397)
Net funding costs (2,300) (5,256) (12,407)
Net surplus on long
term investments 197 - 46,459
Share of loss from
associated company (295) - (1,146)
Net profit before taxation 6,554 348 22,769
Taxation reversed/
(provided) 56 - (990)
- current 56 - (312)
- deferred tax provided - - (678)
Net profit after taxation 6,610 348 21,779
(Revaluation)/Impairment
of investment in associated
company to market value 295 - (877)
Profit attributable
to ordinary
shareholders 6,905 348 20,902
Reconciliation of Headline Earnings to Earnings
Earnings as per above 6,905 348 20,902
(Revaluation)/Impairment
of investment in associated
company to market value (295) - 877
Net surplus on long
term investments (197) - (46,459)
Profit on sale of
fixed assets - - (11)
Headline earnings/(loss) 6,413 348 (24,691)
STATEMENT OF CHANGES IN EQUITY
Share capital and share
premium 250 250 250
Retained income 56,422 28,963 49,517
Balance at beginning
of the period 49,517 28,615 28,615
Net income for the period 6,905 348 20,902
Non distributable reserve 8,363 34,211 8,363
Balance at beginning
of the period 8,363 29,247 29,247
Movement for the period - 4,964 (20,884)
Total shareholders
equity at end of the period 65,035 63,424 58,130
Financial results
Operating profit of R9.1 million comprise dividends received, profits or
losses from the share trading portfolio, differences arising as a
consequence of revaluing the portfolios at market prices on the reporting
date and trading results from operating subsidiaries. Funding costs of R2.3
million have decreased from R5,3 million for the comparable period as a
result of a decrease in long-term borrowings and more favourable interest
rates.
Eureka has consistently maintained its investment strategy since its
conversion to an investment trust several years ago. Eureka will continue to
remain substantially invested in shares.
The accounting policies adopted for the purposes of these results comply, in
all material respects, with the South African Statements of Generally
Accepted Accounting Practices and are consistent with those of the previous
period.
Review of trading operations
Conditions in the engineering sector have continued with little improvement
during the 6 months under review. Poor demand and competitive activity in
the engineering sector continues to effect the performance of Atlas Utas,
Eureka's largest trading subsidiary. The group is therefore actively
limiting its exposure to this market.
The loss in the associate company, Y3K Group Limited, is expected to reverse
in the 2002 year.
Prospects
Management anticipates that the ongoing volatility on the JSE, given its
emerging market status and the general risk aversion of the general
international community, is likely to continue for the near to medium term.
Eureka's investments strategy is none the less expected to yield growth in
value in the period ahead. The trading conditions in the engineering sector
are unlikely to improve in the current financial year.
For and on behalf of the board:
R S Price
Chairman
Johannesburg
8 November 2001
