| Mon 29 May 2017, 17:49 | | WINHOLD LIMITED - Unaudited condensed interim consolidated results of the group for the six months ended 31 March 2017 |
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WNH 201705290051A
Unaudited condensed interim consolidated results of the group for the six months ended 31 March 2017
WINHOLD LIMITED
(?Winhold? or ?the Group)
(Registration number 1945/019679/06)
Incorporated in the Republic of South Africa
Share code: WNH ISIN number: ZAE000033916
Statement of results
Unaudited condensed interim consolidated results of the group for the six
months ended 31 March 2017
Condensed Consolidated Statement of Comprehensive Income
12 months Six
ended months Six months
30 ended 31 ended
September March 31 March
2016 2017 2016
R'000 R'000 R'000
1 149 043 External Revenue 564 375 551 885
28 324 Operating profit 15 868 3 977
112 Investment income - 1 085
Profit on sale of property,
- plant &equipment - -
(6 647) Net finance costs (1 772) (3 927)
21 789 Profit before taxation 14 096 1 135
(2 687) Taxation (4 037) (309)
Share of associates Profit
529 After Tax 412 274
19 631 Profit for the period 10 471 1 100
Profit attributable to non
2 849 controlling interests 2 045 (859)
Profit attributable to
equity holders of the
16 682 parent 8 426 1 959
Other comprehensive income
Actuarial re-measurement
defined benefit
(3 771) Pension fund excluding tax - -
Total comprehensive income
15 860 for the period 10 471 1 100
2 949 Attributable to non- 2 045 (859)
controlling interests
Total comprehensive income
attributable to equity
12 911 holders of the parent 8 426 1 959
Earnings and diluted
earnings per ordinary share
13,3 (cents) 6,7 1,6
Headline and diluted
earnings per ordinary share
13,1 (cents) 6,7 1,6
Weighted average ordinary
shares adjusted for
125 506 treasury stock (000?s) 125 506 125 506
Total Ordinary shares
126 215 issued (000's ) 126 215 126 215
Total depreciation and
14 915 amortisation 8 182 7 959
43 239 EBITDA 24 050 11 936
Reconciliation of headline
earnings
- Comprehensive Income for
12 911 the period 8 426 1 959
- Other comprehensive
3 771 income - -
Profit on disposal of fixed
(83) assets - -
Taxation effects of the
23 above - -
16 622 Total Headline earnings 8 426 1 959
Condensed Consolidated Statement of Financial Position
Six
12 months months Six months
ended ended 31 ended
30 September March 31 March
2016 2017 2016
R'000 R'000 R'000
ASSETS
127 774 Fixed Assets 124 982 129 974
3 478 Investments and loans 3 409 3 223
19 541 Goodwill 19 541 19 541
- (Net) Deferred
20 101 taxation 16 911 19 554
350 919 Current assets 323 290 347 514
155 803 - inventory 159 977 174 644
175 037 - receivables 154 138 157 960
- - unlisted investments - 5 333
20 079 - bank and cash 9 175 9 577
521 813 Total assets 488 133 519 806
EQUITY AND LIABILITIES
Ordinary share capital
122 793 and premium 122 793 122 793
183 649 Retained earnings 187 026 168 926
(5 538) Actuarial Reserves (5 538) (1 767)
Equity attributable to
300 904 owners of the parent 304 281 289 952
Non-controlling
11 564 interests 13 609 7 756
312 468 Total Equity 317 890 297 708
Non-current liabilities
14 711 - interest bearing 14 601 23 114
3 315 - interest free - -
3 562 - deferred taxation - -
187 757 Current liabilities 155 642 198 984
interest bearing
- - bank overdraft 568 16 136
- short term
14 473 borrowings 8 199 8 199
interest free
- payables and
173 284 provisions 146 875 174 649
Total Equity and
521 813 Liabilities 488 133 519 806
Supporting information
Capital Commitments at
1 671 period end - 1 492
Capital expenditure
12 188 during the period 5 576 4 190
Total Interest bearing
29 184 borrowings 23 368 47 449
Total Interest earning
20 079 deposits 9 175 9 577
239,8 Net asset value per
share (cents) 242,4 231,0
39 642 Total intangible assets 19 541 19 541
Tangible net asset value
208,2 per share(cents) 226,9 215,5
5,5 Return on Equity (%) 5,5 1,4
3,8 Return on Assets (%) 4,3 0,3
Condensed Consolidated Statements of Changes in Equity
Six Six
months months
Year ended ended ended
30 September 31 March 31 March
2016 2017 2016
R'000 R'000 R'000
Equity attributable to
holders of the parent
296 828 - Opening balance 300 904 296 828
- Total comprehensive
12 911 income for the period 8 426 (6 876)
(8 835) Dividend Paid (5 049) -
Balance at the end of the
300 904 year 304 281 289 952
Condensed Consolidated Statements of Cash Flows
Six Six
months months
Year ended ended 31 ended
30 September March 31 March
2016 2017 2016
R'000 R'000 R'000
Cash flow from operating
34 319 activities 3 547 6 040
39 634 Cash flow from trading 24 049 13 061
Changes in working
14 956 capital (9 213) 8 104
(6 647) Net finance costs (1 772) (3 967)
274 Dividends from associates 412 -
(8 835) Dividends paid (5 049) (8 835)
(5 063) Taxation paid (4 880) (2 323)
Cash flow from investing
25 409 activities (5 320) 24 920
Net Investment in fixed
(7 917) assets (5 389) (7 921)
Proceeds from loans
(33 326) receivable 69 32 841
Cash flow from financing
(34 895) activities (9 699) (32 765)
Interest bearing
- borrowings raised - -
Interest bearing loans
(34 895) repaid (9 699) (32 765)
Net increase/(decrease)
24 833 in cash (11 472) (1 805)
Condensed Consolidated Statement of 6 Monthly Segment Results
Flexible
Flexible Packaging Construction Trading
First First
First Half First Half First Half Half Half First Half
2017 2016 2017 2016 2017 2016
R?000 R?000 R?000 R?000 R?000 R?000
Revenue external 144 428 159 250 133 898 113 984 286 048 278 650
Revenue Inter
Segment 81 559 83 637 63 057 66 500 6 220 6 990
Depreciation 4 064 3 890 2 977 3 004 998 917
Profit before Tax (2 252) (15 123) 8 264 8 356 11 837 5 350
Capital
Expenditure 1 413 331 1 644 2 209 2 519 1 469
Total Assets 183 794 220 011 156 474 173 198 167 069 164 723
Total Liabilities 90 329 101 471 80 838 92 384 97 074 77 228
GROUP PROFILE
Winhold is a holding company with its main investments being 74,1%
investments in Gundle and Inmins.
Gundle comprises two plastics manufacturing and distribution
operations in Gauteng and one in Swaziland, a dam lining operation
as well as five distribution centres in the main coastal cities,
Lowveld and Bloemfontein. Gundle manufactures a wide range of
polyethylene and polypropylene bags, construction sheeting,
consumer and industrial packaging, agricultural film and dam
linings and distributes to the agricultural, chemical,
construction, food processing, industrial and consumer markets.
Inmins comprises 17 strategically located trading operations
throughout South Africa servicing the mining and industrial
sectors with a wide range of consumable and maintenance products,
and includes divisions specialising in hose, chain and sprocket
systems and conveyor belting.
COMMENTARY
On a slightly improved turnover of 2,3%, profitability improved by
299% due to:
- The restructuring of Gundle Germiston being completed;
- Loss makers in the mining division of Inmins having been
restructured;
- Product mix changes leading to improved profits for Inmins;
- The industrial division of Inmins performing well and
doubling their operating profit.
All of these contributed to the improvement of the Group?s
profits.
REVIEW OF OPERATIONS
Gundle
The turnaround of Gundle Germiston is continuing, although the
markets remain depressed. Operational improvements continue.
Margins in the depressed construction and agriculture sectors are
continually under pressure but management has developed new
products in order to improve market share and profitability.
The dam lining division?s results remained basically the same as
last year due to a depressed market and no new tenders being
awarded for major projects in Sub-Sahara Africa.
The Swaziland operation maintained its profitability in the
depressed market.
The trading division improved profitability by 2% on a decreased
turnover of 3% by increasing margins and keeping expenses below
budget.
Repi Colourants
This division which trades in colourants for PET plastics, once
again produced a good profit for the first six months.
Inmins
As mentioned above, Inmins mining division had a major operating
profit improvement due to actions taken to eliminate loss makers
as well as an improvement in product mix. The industrial division
was well positioned and more than doubled their profitability in a
depressed market.
PROSPECTS
Gundle
The turnaround strategy in one of the flexible manufacturing
divisions is beginning to reap rewards and management is
confident that the division will be profitable by the end of the
financial year.
The other manufacturing divisions are expected continue with
their improvements.
In a depressed market the trading division should continue to be
profitable.
Inmins
The Mining and Industrial Markets remain tough and are expected to
remain so for the rest of the year. Operational improvements in
the division are expected to improve the profitability of the
division.
BASIS OF PREPARATION AND ASSURANCE
These condensed consolidated Group interim financial statements
for the six months ended 31 March 2017 have been prepared in
56accordance with the framework concepts and recognition
requirements of the International Financial Reporting Standards
(?IFRS?) Interim Financial Reporting Standard (?IAS 34?), the
SAICA Financial Reporting Guidelines as issued by the Accounting
Practices Committee and Financial Pronouncements as issued by the
Financial Reporting Standards Council, in compliance with the
Companies Act 2008, as amended, and the Listings Requirements of
the Johannesburg Stock Exchange (?the Listings Requirements?). The
accounting policies are consistent with those used in the prior
year. The preparation of the financial statements has been
supervised by the CEO, Mr W Fourie CA (SA). These interim
financial statements have not been audited or reviewed by the
Group?s auditors. The results for the year ended 30 September 2016
were audited and the auditor?s unqualified audit report is
included in the Annual Financial statements distributed to
Shareholders in January 2017.
CORPORATE GOVERNANCE
The Group subscribes to the highest level of good corporate
governance and is committed to continued implementation of the
recommendations of the King IV Report and the Listings
Requirements. The Group continues to endeavour to conduct its
business in accordance with the principles of accountability,
transparency and integrity. The Consolidated interim financial
statements are the responsibility of the directors. The directors
take full responsibility for the preparation of these statements.
DIRECTORATE
There were no changes to the board during the six months ended
31 March 2017.
DIVIDENDS
No interim dividend has been declared.
EVENTS AFTER THE REPORTING PERIOD
PROPOSED ACQUISITION BY WAFIMA MANUFACTURING AND DISTRIBUTION
HOLDINGS (Pty) Ltd (?Wafima?) OF THE ISSUED CAPITAL OF WINHOLD
As was announced in Sens on Friday 26 May 2017, an offer by Wafima
to acquire the entire issued capital of Winhold at a price of
R1,25 per ordinary share has been received by the directors and is
receiving their attention. Shareholders will be advised in due
course of the process going forward.
For and on behalf of the board
WAR WENTELER W FOURIE
Chairman Chief Executive Officer
Date: 29 May 2016
Winhold Limited (Share code: WNH, ISIN ZAE000033916) Registration
number 1945/019679/06 Incorporated in the Republic of South
Africa, 884 Linton Jones Street, Industries East, Germiston. Tel
+2711 345 9800
Directors: W A R Wenteler (Chairman) ?, W Fourie CEO and Acting
CFO), M Fry??, H Jeen', R Naidoo ??, P. Nash?, (?non-
executive), (? independent) Company Secretary: G J O?Connor
johnoc@winhold.co. Fax: +2711 345 9881
Date: 29/05/2017 05:49:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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