| Thu 6 Dec 2001, 0:00 | | Winhold Limited - Statement Of Results |
|
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
Share code: WNH ISIN number: ZAE000033916
Share code: WNHP ISIN number: ZAE000008041
Statement of results
The board announces the audited consolidated results of the group for the
year ended 30 September 2001.
Consolidated Income Statement
Year ended
30 September
2001 2000
R'000 R'000
Revenue 582 559 515 153
Operating profit 15 645 18 024
Goodwill amortised (948) (528)
Net finance costs (5 976) (7 187)
Exceptional items - 4 165
Net profit 8 721 14 474
Taxation (1 451) (1 165)
Profit after taxation 7 270 13 309
Attributable to:
- Outside shareholders (3 988) (5 944)
Net ordinary shareholders' profit 3 282 7 365
Headline earnings 3 582 5 125
Headline earnings per share (cents) 5,4 7,8
Earnings per share (cents) 4,7 10,9
Net tangible asset value per share (cents) 79,4 77,0
Shares in issue (000's)* 85 340 65 943
Weighted average shares in issue* 65 943 65 943
Dividend per share (cents) 2,0 1,9
Reconciliation of headline earnings
Net ordinary shareholders' profit 3 282 7 365
Exceptional items
- profit on redemption of
convertible debentures - (4 165)
- minority share of profit on redemption - 2 003
Amortisation of goodwill 948 528
Minority share of goodwill amortisation (504) (426)
Preference dividend (144) (180)
3 582 5 125
Supplementary information
Capital commitments 975 3 175
Capital expenditure 11 775 7 724
Depreciation 9 100 8 409
Interest bearing borrowings 50 410 39 875
Interest earning deposits 4 648 6 508
*The acquisition of the minority shareholding in Gundle Limited became
effective on the last day of the financial year and accordingly, did not
effect the weighted average number of shares in issue for the year. The
number of issued ordinary shares after the transaction became 85 340 161.
Summarised Consolidated Balance Sheet
Year ended
30 September
2001 2000
R'000 R'000
ASSETS
Fixed and other non-current assets 74 574 73 080
Negative goodwill (9 680) -
Deferred taxation 1 965 1 399
Current assets 173 483 166 511
Total assets 240 342 240 990
EQUITY AND LIABILITIES
Ordinary and preference share
capital and premium 66 609 61 437
Non-distributable reserves 17 838 17 838
Accumulated deficit (23 985) (25 416)
Shareholders' interest 60 462 53 859
Outside shareholders' interest 22 906 37 004
Total equity 83 368 90 863
Non-current liabilities
- interest bearing 12 523 16 166
- interest free 960 910
Deferred taxation 1 522 1 443
Current liabilities - interest bearing 37 888 23 709
- interest free 104 081 107 899
Total equity and liabilities 240 342 240 990
Summarised Consolidated
Statement of Changes in Equity
Shareholders' funds at beginning of year 53 859 47 927
Changes in share capital and premium 5 172 -
Changes in non-distributable reserves - -
Changes in accumulated deficit 3 282 7 365
Dividend declared - preference (144) (180)
- ordinary (1 707) (1 253)
Shareholders' funds at end of year 60 462 53 859
Summarised Consolidated Cash Flow Statement
Cash flow (used in)/
from operating activities (1 673) 17 695
Cash flow used in investing activities (11 019) (7 822)
Cash flow used in financing activities (357) (8 663)
Net (decrease)/increase in cash
and cash equivalents (13 049) 1 210
Cash and cash equivalents at
beginning of year (6 372) (7 582)
Cash and cash equivalents at end of year (19 421) (6 372)
Segment Information
Turnover Operating profit Total assets
(R'000) (R'000) (R'000)
2001 2000 2001 2000 2001 2000
BUSINESS SEGMENTS
Flexible plastics
(Gundle) 225 927 207 420 3 638 8 638 125 784 139 858
Mining and
industrial
consumables
(Inmins) 356 632 307 733 12 244 9 454 110 585 96 573
Other - - (237) (68) 3 973 4 559
582 559 515 153 15 645 18 024 240 342 240 990
COMMENTARY
Group structure
In terms of circulars to shareholders in August and September 2001, the
previous ultimate holding company of the group, Winbel Limited, unbundled
into Winhold Limited, and Winhold acquired the minority shareholding in
Gundle Limited. Winbel and Gundle were subsequently de-listed on the JSE
Securities Exchange of South Africa. The cost to the group of the
unbundling/restructure amounted to R1,4 million. The Winhold Limited
controlling investment in Inmins Limited remains at 52,7%.
During the year the company acquired 19,9% of its preference shares in terms
of the general buyback authority granted at the AGM in March 2001, and it is
intended to buy back further preference shares when the opportunity arises.
Financial results
Group revenue increased by 13% to R582,5 million. Although operating profit
declined, taxation increased, the group increased ordinary dividends by 5%
to 2,0 cents per share.
DIVISIONAL RESULTS
Inmins Group
Best ever trading results were achieved for the past financial year. Revenue
increased by 16%, operating profit increased by 29%, headline earnings
increased by 30% and dividends increased by 20%. Net asset value grew to
120,9 cents per share.
Overall a very rewarding year with outstanding results achieved in a highly
competitive environment.
The value added division continued with their new developments which
resulted in increased orders from the mining sector. This coupled with
improved efficiencies and excellent service resulted in a best ever year for
this division.
The low cost, strategically placed mining trading branch network, together
with excellent service levels, resulted in best ever results in this
division as well.
Although the depressed market conditions in the industrial division
continued, corrective actions implemented, ensured improved profitability. A
new venture started two years ago produced excellent results and enhanced
the confidence originally shown in this investment.
Gundle Group
The decrease in market demands in the construction and agricultural markets
resulted in increased competitor activity and lower margins. Overlapping
plant capabilities were eliminated, people retrenched and a new focused
product strategy has been formulated. More spending was approved on research
and development of new generation competitively priced value added products.
The majority of these costs were borne during the second half of the
financial year. The repositioning and the resulting increased expenses were
necessary to ensure a profitable future for the Gundle Group. Regrettably it
negated the impact of the excellent Inmins results of Winhold, but already
improved results in most of the Gundle divisions indicates that the correct
actions were undertaken. More corrective surgery will be done in the
divisions who do not perform according to agreed to targets, if necessary.
Management is confident that the Gundle Group will return to profitability
during the next financial year.
PROSPECTS
Indications are that the Inmins Group should be able to continue on its
profitable growth path and with the repositioning of the Gundle Group, the
few remaining problems should turn to profitability soon. Continued
improvement of products, cost-cutting and increased efficiency should lead
to better results. This, together with the cost savings achieved through
group unbundling and financial restructuring should ensure that Winhold
achieves improved future results.
ACCOUNTING POLICIES
The accounting policies of the group are consistent with those applied in
the most recent annual financial statements and with South African
Statements of Generally Accepted Accounting Practice.
DIVIDENDS
Ordinary: Notice is hereby given that a dividend of 2,0 cents (2000: 1,9
cents) per ordinary share for the year ended 30 September 2001 has been
declared to holders of ordinary shares recorded in the share register of the
company at the close of business on 18 January 2002.
Preference: Notice is hereby given that a preference dividend of 20,25 cents
(2000: 20,25 cents) per 9% automatically convertible preference share has
been declared for the year ended 30 September 2001 to holders of these
shares recorded in the share register of the company at the close of
business on 18 January 2002.
The following apply to both the abovementioned classes of shares:
Last day to trade cum dividend is: Friday, 11 January 2002
Commence trading ex dividend from: Monday, 14 January 2002
Record date: Friday, 18 January 2002
Payment date: Monday, 21 January 2002
Share certificates may not be dematerialised/rematerialised between Monday,
7 January and Friday, 18 January 2002, both dates inclusive.
On behalf of the board
W A R Wenteler J H Henderson
Chairman Director
7 December 2001
Directors
W A R Wenteler (Chairman), W Fourie, J H Henderson (Non-executive),
PJ Kruger
Company Secretary
D J de Villiers
e-mail: winsec@pop.co.za
Registered office and postal address
Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg, 2000)
Transfer Secretaries
Mercantile Registrars Limited
8th Floor, 11 Diagonal Street, Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
e-mail: it@registrars.co.za
