| Thu 14 Feb 2002, 0:00 | | Gencor Limited - Interim Results For The Six Month |
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Gencor Limited
Registration number 1895/001232/06
ISIN: ZAE000013066
Share code: GMF
GENCOR
INTERIM results for the six months ended 31 December 2001
INCOME STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2001 2000 2001
(R million) Notes Unaudited Unaudited Audited
Implats ordinary
dividends declared 728,4 434,6 869,2
Implats special
dividend declared - - 918,2
Dividend income from
Implats 1 728,4 434,6 1 787,4
Net interest income 19,8 12,2 27,1
Net corporate costs (10,7) (7,5) (16,2)
Other net income 8,2 8,1 90,6
Corporate restructuring
costs - (2,7) (1,6)
Profit before taxation 745,7 444,7 1 887,3
Taxation (4,0) (3,1) (8,0)
Profit after taxation 741,7 441,6 1 879,3
Implats equity accounted
retained income 2&3 282,2 557,8 360,0
Attributable profit 1 023,9 999,4 2 239,3
Weighted average number
of shares in issue (m) 348,6 348,6 348,6
Earnings per share (cents)
Attributable earnings 294 287 642
Headline earnings 4 291 285 617
Dividends per share (cents)
Ordinary declared 209 129 253
Special declared - - 264
BALANCE SHEET
Investments 2 & 5 3 410,9 3 323,6 3 097,0
Other non-current assets 1,0 60,5 11,0
Current assets 394,1 216,9 366,0
Total assets 3 806,0 3 601,0 3 474,9
Capital and reserves 3 703,7 3 518,1 3 377,6
Current liabilities and provisions 102,3 82,9 97,3
Total equity and liabilities 3 806,0 3 601,0 3 474,9
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
Opening balance 3 377,6 2 808,8 2 808,8
Distributions to ordinary
shareholders (728,6) (449,7) (1 802,2)
Attributable income 1 023,8 999,4 2 239,3
Gencor's equity portion
of the revaluation of
investments by Implats 3 30,9 159,6 131,7
Total shareholders' equity 3 703,7 3 518,1 3 377,6
CASH FLOW STATEMENT
Cash generated by operating
activities 733,9 442,9 1 812,7
Dividends paid (728,6) (449,7) (1 802,2)
Net cash from operating
activities 5,3 (6,8) 10,5
Share scheme loan repayments
and surpluses 17,7 4,3 125,0
Other corporate activities 0,5 1,4 13,8
Net increase/(decrease) in cash 23,5 (1,1) 149,3
Closing cash balance 383,7 209,8 360,2
VALUATION
Implats (Rm) 17 213 11 808 12 346
Number of shares in issue (m) 348,6 348,6 348,6
Closing share price on
JSE (cents) 4 825 3 100 3 380
Gencor's market capitalisation
(Rm) 16 819 10 806 11 782
Gencor's discount to market
value of listed investments (%) 2,3 8,5 4,6
Net asset value per share (cents) 1 062 1 009 969
NOTES TO THE FINANCIAL STATEMENTS
1. During the year, the group adopted the provisions of South African
Accounting Standard AC107 (revised), namely, "Events Occurring after the
Balance Sheet Date". Under the revised accounting policy, dividends and the
related secondary tax on company charge will only be brought to account once
dividends have been declared. This change has had no effect on the
attributable earnings. Opening retained earnings have been adjusted by an
amount of R449,7 million in the statement of changes in shareholders equity.
2. Implats is equity accounted, whereas all other investments are cost
accounted.
3. During the year, Implats adopted the provisions of IAS 39 (Financial
Instruments: Recognition and Measurement). As a result adjustments to
reserves that arise on the valuation, at market prices, of Implats' listed
investments that are not equity accounted by it, have been included by
Gencor in the statement of changes in shareholders equity.
4. The earnings per share calculations are based on attributable income.
Headline earnings per share exclude other net income and corporate
restructuring costs.
5. Investments are recorded at book value and, where appropriate, include
post acquisition income and reserves.
6. The company has given certain limited warranties and an indemnity, for
five years and capped at an aggregate amount of US$220 million, to Billiton
Plc in relation to the businesses that were transferred to it in July 1997.
Gencor also has certain obligations relating to the closure of the Prima
Lirang gold mine in Indonesia that expire in 2002. The sale of various other
assets carry warranties and indemnities that should not exceed R10 million.
The directors do not anticipate any losses, additional commitments or claims
from these arrangements. There are no legal or arbitration proceedings
including any that are pending or that Gencor is aware of or any obligations
relating thereto, that have had or that may have, in the opinion of the
directors, a material effect on Gencor's financial position and accordingly
no contingencies or provisions have been raised therefor.
7. The interim financial statements have been prepared using accounting
policies consistent with those of the annual financial statements for the
year ended 30 June 2001 and conform with AC127 (Interim Financial Reports),
except as set out above. Where necessary, comparative figures have been
adjusted to conform to changes in presentation in the current year.
results
Gencor's attributable profit at R1 024 million is 2,5% higher than the R999
million achieved in the corresponding previous six months. This increase in
profitability is principally due to the income (dividends and equity
accounted retained income) from Impala Platinum Holdings Limited
("Implats").
Dividend income comprises the final dividend of R728 million declared by
Implats in August 2001 in respect of the 2001 financial year (R435 million
in the six months ended December 2000).
Net interest received amounts to R20 million, R8 million more than in the
previous year primarily as a result of the higher cash balances held.
Corporate costs of R11 million have been recorded for the six-month period
(R8 million in 2001). Other net income comprises surpluses earned in the
share incentive trust of R8 million this half-year compared to the surpluses
of R4 million and the R4 million income from dividends forfeited in terms of
the articles of association that were recorded last year.
Implats
Income
Implats turned out a remarkable performance this review period. Prices for
key metals continued their slide after the 2001 financial year-end. During
October market sentiment turned and prices began to firm. This phenomenon
was underpinned by Russian supply uncertainties that arose at the end of
calendar 2001. The erosion of earnings caused by the weaker, though
volatile, prices that nevertheless prevailed was largely offset by higher
sales volumes and by the material deterioration in the rand compared to hard
currencies that occurred towards the calendar year-end.
Implats attributable income of R2 192 million for these past six months was
some 2,4% more than the R2 140 million earned by it in the first half of
last year.
In accordance with its dividend policy, Implats proposed an ordinary interim
dividend of 1 100 cents per share (1 420 cents in the first half of
financial year 2001) that was approved on 6 February 2002. Gencor's portion
amounts to R337 million.
Investment
The R17,2 billion market value of the investment in Implats at the end of
December 2001 surpassed the R11,8 billion market value at 31 December 2000
by 46%.
Prospects
Despite the soft world economy the markets for platinum group metals have
held up better than expected and the fundamentals for platinum still look
sound. Although Implats benefited from the recent weakness of the local
currency, this has not compensated fully for lower metal prices. As a result
Implats' attributable earnings are expected to fall short of the record 2001
financial year, but they should still be considerably better than those of
the 2000 financial year, which were then a record.
Implats' volume growth strategy of 5 to 10% per annum is on track. The
development of the new mine in the Eastern Bushveld is progressing well and
material sourced from strategic partners continues to grow. It is
anticipated that Implats will have an economic interest in over 2 million
ounces of platinum per annum by 2006. Its strong balance sheet and robust
cash earnings will enable Implats to fund the anticipated expansions and
acquisitions.
Market speculation
Shareholders are no doubt aware of the recent spate of news reports alluding
to possible claims against Gencor arising out of the interests it once held
in the Gefco group of companies. The view of the directors is contained in
note 6 to the financial statements. Shareholders will be advised should any
major developments occur.
dividends
In line with the policy of distributing, to the extent possible, all
dividend income received from underlying investments, the Board has proposed
an interim dividend of 97 cents per ordinary share (2001: 124 cents per
ordinary share), absorbing R338 million.
For and on behalf of the Board
JM McMahon (Chairman) Johannesburg
MV Mennell (Director) 14 February 2002
Gencor Limited
Registration number 1895/001232/06
ISIN: ZAE000013066
Share code: GMF
Announcement of interim dividend no. 152 of 97 cents per ordinary share
An interim dividend no. 152 of 97 cents (2001: 124 cents) per ordinary share
was declared on 13 February 2002:
Last day to trade cum-dividend Friday, 5 April 2002
Trading ex-dividend commences Monday, 8 April 2002
Record date Friday, 12 April 2002
Date of payment Monday, 15 April 2002
The dividend will be transferred electronically on 15 April 2002 to the bank
accounts of those shareholders who utilise this facility whilst dividend
cheques will be mailed to the balance of the shareholders on the same date.
The dividend is payable in the currency of the Republic of South Africa,
unless arrangements to the contrary have been made with the transfer
secretaries, provided such payments are in accordance with the regulations
of the South African Reserve Bank.
Share certificates may not be dematerialised or rematerialised between
Thursday, 28 March 2002 and Friday, 12 April 2002, both days inclusive.
Company secretary and registered office
J Marais (B Proc, LLB)
KPMG Crescent, North Wing, First Floor, 85 Empire Road, Parktown 2193.
Postnet Suite 222, Private Bag X30500, Houghton, 2041.
Telephone: +27 11 647 6203 Telefax: +27 11 484 1653
LONDON OFFICE
Project Consultants Limited
Walnut House, Walnut Gardens, Claydon, Banbury, Oxon OX17 1NA
Telephone: +44 1295 690180 Telefax: +44 1295 690182
TRANSFER SECRETARIES
Mercantile Registrars Limited
11 Diagonal Street, Johannesburg 2001
P O Box 1053, Johannesburg 2000
Telephone: +27 11 370 5000 Telefax: +27 11 370 5271/2
