| Wed 23 Jan 2002, 0:00 | | Hudaco Industries Limited - Audited Group Results |
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November 2001
Hudaco Industries Limited
Reg no 1985/004617/06
Share code HDC ISIN code ZAE000003273
Audited Group Results for the year ended 30 November 2001
- Headline EPS up 31% to 224 cents
- Net cash on hand - R64 million
- Contribution from new security business exceeds expectations
RESULTS
Hudaco had a good year. Sound performances from ongoing operations, the
acquisition of Elvey Security Technologies ("Elsec") in March 2001 and the
share buy-back programme in late 2000 all contributed towards a 31% increase
in headline earnings per share.
Sales of R1 073 million are up 18% on 2000 mainly as a result of the
acquisition of Elsec, a leading South African distributor of electronic
security systems to the security industry. Elsec achieved substantial sales
and earnings growth this year, exceeding expectations at the time of
acquisition, and its local and international growth potential is expected to
continue to impact positively on Hudaco's results.
The operating profit margin rose to 9,3% from 8,0% due to improved operating
efficiencies achieved by most businesses in the group. Operating profit in
continuing operations increased by 22% and Elsec contributed a further 16%
resulting in total operating profits rising 38% to R100 million. Net
financing costs increased R2,3 million to R4,2 million mainly as a result of
the reduction in cash balances after the investment of R48 million in
acquisitions. The tax charge, before capital items, rose from 25% to 29%.
Headline earnings rose 23% to R62,5 million and the number of shares in
issue declined 6% following the 2000 share buy-back programme resulting in
headline earnings per share increasing 31% to 224 cents (2000: 171 cents).
The total distribution to shareholders has increased by 32% to 75 cents per
share with the final distribution rising 40% to 53 cents per share. Net
capital items written off of R4 million comprise the amortisation of
goodwill and the costs of closing Bestobell's mine support business.
BALANCE SHEET
Total assets increased by R123 million to R692 million. This is mainly due
to the inclusion of Elsec which was acquired at a cost of R48 million
(including goodwill of R18 million) and an increase in cash balances of R35
million. Net cash on hand at year-end (cash balances less interest-bearing
debt) amounted to R64 million compared with R29 million at November 2000 and
is a particularly pleasing achievement. Cash flow per share amounted to 352
cents, a reflection of continued improvement in balance sheet management
during the year.
PROSPECTS
With a proven management team, sound businesses, a strong balance sheet and
a new focus on the security industry, Hudaco is well placed to continue to
produce attractive earnings growth and cash flows to fund its investment
programme.
Despite the uncertain world economic outlook and the impact of the rand's
decline Hudaco's traditional businesses are expected to perform
satisfactorily in 2002. However, Elsec is expected to continue to grow
rapidly. Headline earnings per share in 2002 are therefore expected to show
satisfactory real growth.
NOTICE OF CAPITAL REPAYMENT AND DIVIDEND
Notice is hereby given that the final distribution to shareholders in
respect of the year ended 30 November 2001 of 53 cents per share has been
declared in the form of dividend No 29 of 3 cents per share together with
capital repayment No 5 of 50 cents per share being the balance on the
special reserve (formerly the share premium account) ("the distribution").
The last day of trade in order to participate in the distribution ("cum" the
distribution), will be Friday, 15 March 2002. The share will commence
trading "ex" the distribution from the commencement of business on Monday,
18 March 2002 and the record date will be Friday, 22 March 2002. The
distribution will be made on Monday, 25 March 2002.
The distribution is freely remittable to non-resident shareholders except
for emigrant shareholders (an emigrant from South Africa who resides outside
the common monetary area) where the capital repayment (50 cents) will be
regarded as blocked assets in terms of a ruling by the Exchange Control
Department of the South African Reserve Bank.
For and on behalf of the board
PL Campbell SJ Connelly
Chairman Chief Executive
22 January 2002
Transfer secretaries
Computershare Services Limited
PO Box 61051 Marshalltown 2107
Registered office
Hudaco Park 190 Barbara Road Tel +27 11 345 8200
Elandsfontein 1406 Fax +27 11 392 2740
E-mail info@hudaco.co.za
Directors
PL Campbell* (Chairman) SJ Connelly (Chief Executive) AJ Behrmann*
GE Gardiner JB Gibbon* MS Jolly PG Joubert* A Keschner
NKY Molefi* PM Poole
*Non-executive
Secretary
RGL Arnestad
These results are available on the Internet at www.hudaco.co.za
AUDITED GROUP RESULTS
for the YEAR ended 30 NOVEMBER 2001
GROUP INCOME STATEMENT
30 Nov % 30 Nov
R million 2001 change 2000
Turnover 1 073,4 18,2 908,3
Continuing operations 947,1 4,3 908,3
Acquisitions in 2001 126,3
Cost of sales 675,9 577,0
Gross profit 397,5 331,3
Operating expenses 297,4 258,8
Operating profit 100,1 38,1 72,5
Continuing operations 88,6 22,2 72,5
Acquisitions in 2001 11,5
Capital items written off 4,0
Profit before interest 96,1 72,5
Net finance costs 4,2 1,9
Profit before taxation 91,9 70,6
Taxation 28,3 17,4
Profit after taxation 63,6 53,2
Share of associate
company profits 1,7 2,3
Attributable to outside
shareholders 6,8 4,7
Profit attributable to
shareholders 58,5 50,8
Add back capital items 4,0
Headline earnings 62,5 23,0 50,8
Headline earnings per
share (cents) 224,1 31,0 171,1
Basic earnings per
share (cents) 209,7 171,1
Diluted earnings per
share (cents) 204,7 166,9
Distributions to shareholders
- Per share (cents) 75,0 31,6 57,0
- Amount (Rm) 21,0 16,4
Shares in issue 28 018 27 865
- Total (000) 30 526 30 353
- Held by subsidiary
company (000) (2 508) (2 488)
Weighted average shares in issue
- Basic (000) 27 892 29 682
- Diluted (000) 28 586 30 436
GROUP BALANCE SHEET
30 Nov 30 Nov
R million 2001 2000
ASSETS
Non-current assets 91,4 66,7
Property, plant and equipment 42,4 41,3
Deferred taxation - net 3,8 1,5
Investment in associate 25,1 23,9
Goodwill 20,1
Current assets 600,2 502,0
Inventories 259,5 244,0
Accounts receivable 226,0 178,1
Bank deposits and balances 114,7 79,9
TOTAL ASSETS 691,6 568,7
EQUITY AND LIABILITIES
Equity 358,4 314,6
Shareholders' equity 320,2 282,1
Outside shareholders' interest 38,2 32,5
Non-current liabilities
Interest-bearing debt 50,9 50,8
Current liabilities 282,3 203,3
Accounts payable 238,4 176,7
Taxation 29,0 15,6
Interest-bearing debt 0,3
Distributions due to
shareholders 14,9 10,7
TOTAL EQUITY AND LIABILITIES 691,6 568,7
GROUP CASH FLOW STATEMENT
30 Nov 30 Nov
R million 2001 2000
Cash generated from trading 110,4 82,8
Cash released from
working capital 21,5 (3,5)
Cash generated from
operating activities 131,9 79,3
Finance cost (4,2) (1,9)
Taxation paid (18,1) (16,4)
Cash flow from operations 109,6 61,0
Cash capital repayments to
shareholders (17,0) (16,9)
Net cash retained 92,6 44,1
Investment in new
operations - net (49,3)
Net investment in fixed
assets (9,0) (7,2)
Net cash invested (58,3) (7,2)
CASH RETAINED 34,3 36,9
Shareholder funding 0,8 0,8
Shares repurchased by
subsidiary company (0,1) (21,3)
INCREASE IN NET CASH 35,0 16,4
CASH FLOW PER SHARE (CENTS) 352,0 188,0
GROUP STATEMENT OF CHANGES IN EQUITY
30 Nov 30 Nov
R million 2001 2000
Equity at beginning of year 282,1 268,2
Attributable profit
for the year 58,5 50,8
Capital transactions with
and capital
repayments to shareholders (20,4) (36,9)
Share issues 0,7 0,8
Shares repurchased by
subsidiary company (0,1) (21,3)
Distributions to
shareholders (21,0) (16,4)
Equity at the end of
the year 320,2 282,1
SUPPLEMENTARY INFORMATION
These results were prepared applying accounting policies which are
consistent with those applied in the most recent annual financial statements
and which conform with the South African Statements of Generally Accepted
Accounting Practice.
30 Nov 30 Nov
R million 2001 2000
Average net operating assets (NOA) (Rm) 320,0 284,7
Operating profit margin (%) 9,3 8,0
Average NOA turn (times) 3,4 3,2
Return on average NOA (%) 31,3 25,5
Depreciation (Rm) 11,0 10,3
Interest cover by operating
profit (times) 22,9 39,1
Gearing - net (%) nil nil
Net asset value per share (cents) 1 143 1 012
Capital expenditure
- Spent during the year (Rm) 11,7 13,3
- Budgeted for 2002 (Rm) 17,9
Net (borrowings)/cash comprises (Rm) 63,8 28,8
- Bank call deposits and balances 114,7 79,6
- Interest-bearing debt - Non-current (50,9) (50,8)
Operating lease commitments
- Property (Rm) 27,4 26,1
Capital items written off (Rm) 4,0
Amortisation of goodwill 1,5
Closure of mine support business 2,5
SEGMENTAL ANALYSIS
Average net
Turnover Operating profit Operating assets
30 Nov % 30 Nov 30 Nov % 30 Nov 30 Nov % 30 Nov
R million 2001 change 2000 2001 change 2000 2001 change 2000
Bearings and
transmission
products 576,1 3,9 554,4 52,7 16,9 45,1 180,1 4,2 172,8
Powered
products 233,0 4,4 223,2 26,4 43,5 18,4 63,0 (8,3) 68,7
Automotive
products 135,7 2,0 133,0 11,5 (0,9) 11,6 56,1 6,0 52,9
Internal/
head
office 2,3 (2,3) (2,0) (2,6) (14,1) (9,7)
947,1 4,3 908,3 88,6 22,2 72,5 285,1 0,1 284,7
Security
Products
(nine
months) 126,3 11,5 34,9
1 073,4 18,2 908,3 100,1 38,1 72,5 320,0 12,4 284,7
VALUE-ADDED DISTRIBUTION
Hudaco
A network of specialised branches and independent distributors throughout
southern Africa serves the replacement part markets in southern Africa's
primary and secondary industries and domestic and commercial security
service providers.
BEARINGS AND TRANSMISSION PRODUCTS
ABES Technoseal
Importer and distributor of world-class oilseals, hydraulic, pneumatic and
rotary shaft seals.
Bearings International
Sells a full range of leading brand bearings, chains, sprockets, couplings
and seals and provides value-adding customer services such as supply chain
optimisation, inventory management and product training.
Belting Supply Services
Specialist suppliers of conveyor belting, power transmission products and
industrial hoses.
BEP Bestobell
Supplies internationally branded products and systems for the control and
monitoring of flow, temperature, pressure and moisture.
Bosworth
Market leaders in design and manufacture of conveyor pulleys, forge, heat
treatment and plate rolling.
Ernest Lowe ELCO
Quality automation solutions using world-class pneumatic and hydraulic
products.
Mather + Platt
Distributors of Viking gear pumps, EIM dewatering/slurry pumps, Lowara
residential, industrial and agricultural pumps and Mather + Platt
pumps/spares.
Valard Bearings
Valard Bearings - specialising in repair and manufacture of whitemetal
bearings.
Vivian Regina
Manufactures glass-fibre tissues for the glass-reinforced plastics,
waterproofing, lead acid battery and pipeline protection markets.
Deutz Dieselpower
Marketing and servicing of Deutz diesel engines and spares.
Rutherford
Sole distributor of Makita industrial power tools, Mercury and Mariner
outboard engines and accessories, Topcon and Ashtech survey and GPS
equipment.
SECURITY PRODUCTS
Elvey Security Technologies ("Elsec")
Africa's leading service provider of electronic security systems to the
security industry, through distribution, training and technical support.
Vision Line
Distributor of closed-circuit television, access control, fire detection and
fibre-optic equipment.
AUTOMOTIVE PRODUCTS
Angus Hawken
Manufacturer of rotary shaft and pneumatic seals in NBR, Viton and Silicone
compounds.
Hudaco Friction
Manufacturers and distributors of quality passenger and commercial vehicle
disc pads and linings to vehicle manufacturers, replacement and export
markets.
PHC Clutch
Distributes the Valeo brand of light and medium-duty clutches.
repayment and dividend
HUDACO INDUSTRIES LIMITED ("HUDACO")
(Registration number 1985/004617/06)
ISIN Code : ZAE000003273
Share Code : HDC
AMENDMENT OF DATES IN RESPECT OF THE CAPITAL REPAYMENT AND DIVIDEND
Shareholders are referred to the audited group results for the year ended 30
November 2001 released on the Stock Exchange News Service earlier today and
in particular to the dates in respect of the capital repayment and dividend
payment. The last day of trade in order to participate in the distribution
("cum" the distribution) will be Thursday, 14 March 2002 (not Friday, 15
March 2002 as stated earlier). The share will commence trading "ex" the
distribution from commencement of business on Friday 15 March 2002 (not
Monday 18 March 2002). The record date and the date of the distribution
remain as announced earlier. These changes were necessitated by the fact
that Thursday 21 March 2002 is a public holiday.
22 January 2002
