| Wed 28 Nov 2001, 0:00 | | Intertrading - Unaudited Results For The Period En |
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INTERTRADING LIMITED
Registration number 1987/004777/06
Share code ITR ISIN ZAE000015566
("Intertrading" or "the company")
UNAUDITED RESULTS FOR THE PERIOD ENDED 31 AUGUST 2001
Consolidated income statements
Unaudited Unaudited
half-year half-year Audited
31 Aug 31 Aug Year ended
2001 2000 2001
R'000 R'000 R'000
Revenue 207 822 193 428 315 500
Operating profit before
interest and amortisation of goodwill 6 289 5 060 9 133
Net interest paid (119) (827) (1 158)
Amortisation of goodwill (1 024) (1 024) (2 048)
Net income before taxation 5 146 3 209 5 927
Taxation (2 216) (502) (831)
Net income after taxation 2 930 2 707 5 096
Income from associated companies 112 129 13
Net income attributable to shareholders 3 042 2 836 5 109
Statement of changes in equity
Unaudited Unaudited
half-year half-year Audited
31 Aug 31 Aug Year ended
2001 2000 2001
R'000 R'000 R'000
Equity at 28 February 2001 62 405 57 296 57 296
Net profit for period 3 042 2 836 5 109
Foreign currency translation reserve 483 - -
Dividend declared in respect
of prior period (1 500) - -
Equity at 31 August 2001 64 430 60 132 62 405
Financial highlights
Unaudited Unaudited
half-year half-year Audited
31 Aug 31 Aug Year ended
2001 2000 2001
R'000 R'000 R'000
Number of ordinary shares ('000) 50 000 50 000 50 000
Weighted average number
of shares in issue ('000) 50 000 50 000 50 000
Headline earnings per share (cents) 8,1 7,7 14,3
Earnings per share (cents) 6,1 5,7 10,2
Net asset value per share -
excluding goodwill (cents) 57,2 44,5 51,1
Cash flow statements
Unaudited Unaudited
half-year half-year Audited
31 Aug 31 Aug Year-ended
2001 2000 2001
R'000 R'000 R'000
Cash utilised by operations (34 377) (25 530) (15 553)
Net interest paid (118) (827) (1 158)
Taxation paid (808) (425) (757)
Dividend paid (1 500) (1 500) (1 500)
Cash utilised by operating activities (36 803) (28 282) (18 968)
Net cash flow from investing activities (392) (141) (1 365)
Net cash flow from financing activities 41 552 24 943 19 709
Net movement in cash 4 357 (3 480) (624)
Net cash resources at beginning of year (3 670) (3 046) (3 046)
Net cash resources at end of period 687 (6 526) (3 670)
Consolidated balance sheets
Unaudited Unaudited
half-year half-year Audited
31 Aug 31 Aug Year-ended
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets
- Property, plant and equipment 5 516 5 234 5 606
- Goodwill and trademarks 35 839 37 887 36 863
- investments 1 885 1 239 1 773
Current assets 166 054 79 984 88 082
209 294 124 344 132 324
EQUITY AND LIABILITIES
Share capital 5 000 5 000 5 000
Share premium 44 452 44 452 44 452
Foreign currency translation reserve 483 - -
Distributable reserves 14 495 10 680 12 953
Shareholders' interest 64 430 60 132 62 405
Long-term liabilities 420 993 601
Deferred taxation 540 197 263
Current liabilities 143 904 63 022 69 055
209 294 124 344 132 324
Nature of business
Intertrading is an international agricultural business service company
focusing on two areas of activity, namely:
1. the procurement and global marketing of Southern African fruit via sea-
and airfreight; and
2. the international trading of commodities to supplement shortfalls in
South Africa and the sub-Saharan areas.
The shares are listed in the Industrial - "Food" sector of the JSE
Securities Exchange South Africa.
Comment on results
Net income before taxation increased by 60% from R3,2 million to R5,1
million, reflecting improved margins in the group's traditional fresh fruit
export businesses and a strong performance from the International agri-
commodities business.
Headline earnings per share increased by 5,2%, the lower growth rate
being attributable to an increased rate of taxation for the period.
The difference between headline earnings per share and earnings per share is
the amortisation of goodwill of R1 milliom for the period.
These results were prepared in accordance with statements of GAAP and are
consistent with the accounting policies of the company.
Operational review
The airfreight and international commodities businesses performed
particularly strongly during the period under review. Generally, demand from
Europe for South African fruit has been strong and the quality of Southern
African produce has been good, which has enabled producers to achieve better
prices relative to producers from other parts of the world. Intertrading
sees its business as market driven rather than product driven, which in a
world that is increasingly competitive and selective, is a distinct
advantage over Intertrading's larger South African competitors selling bulk
volumes of undifferentiated produce.
Agrilink has established itself as the leading airfreight exporter of
South African fruit and as such is an important client of the airlines,
commanding optimal freight rates for its customers. Its perishable cargo
premises within Johannesburg Airport provide it with a unique location that
enables it to offer better quality service and product to its customers.
Inter Africa, which was established by Intertrading two years ago to
focus on sub-Saharan grain trading, is a growing contributor to the group
profits and has established a successful niche in high volume risk managed
back-to-back structured trade finance transactions. Financing is provided by
banks specialising in trade finance, approving each deal on its merits. The
successful growth of the Inter Africa business has required substantial
working capital investment resulting in an increase in short-term
borrowings. It is not expected that the division will increase its funding
facilities materially in the near future.
Directorate and directors' shareholdings
Ernest Blomkamp, who jointly founded Intertrading with Bert de Kovel, has
decided to retire from Intertrading and resigned his directorate in October
2001. His contribution over the years has been greatly appreciated. Together
with his retirement, he agreed to dispose of the 10 000 000 ordinary shares
in Intertrading held by him to managing director Frik van Rooyen and other
senior employees of the group.
Prospects
There has been a noticeable slowing in world trade since the terror attacks
of 11 September 2001, but this has been more than offset by the weak South
African Rand. South African fruit exports have held up well and the second
half-year results should exceed those of the period under review.
Dividend
No interim dividend has been declared in line with Intertrading's policy of
declaring a single annual dividend.
By order of the board
G F M van Rooyen
Managing Director
Johannesburg
29 November 2001
Registered office: Transfer Secretaries:
Kuehne and Nagel House Computershare Services
37 Bath Avenue Edura House
Rosebank 2196 41 Fox Street
(PO Box 1720, Parklands 2121) Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
Directors: Dr P Deetlefs (Chairman), G F M van Rooyen (Managing Director),
Dr A Hahn, A J de Kovel*, B R Julicher
*Netherlands
