| Thu 21 Feb 2002, 0:00 | | Marshalls Limited - Provisional Report For The Yea |
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Marshalls Limited
(Reg.No. 1987/002656/06)
MARSHALLS LIMITED
(Formerly MARSHALLS CONTROLLING INVESTMENTS LIMITED)
Share code MSS, MRN. ISIN ZAE000031225, ZAE000031233
PROVISIONAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2001
The unaudited results for the year ended 31 December 2001
for Marshalls Limited and its subsidiaries are as follows:
INCOME STATEMENT
31.12.2001 31.12.2000
R R
Commission, interest and dividends
received 1,596,000 1,799,503
Rental income 16,581,000 16,435,379
Revenue 18,177,000 18,234,882
Operating profit before interest
and taxation 8,531,000 7,195,143
Interest received 528,000 204,103
Interest paid (3,347,000) (1,871,788)
Loss from Associate (89,232)
Profit before exceptional item 5,712,000 5,438,226
Exceptional item (note 1) (3,260,000) (3,241,799)
Profit before taxation 2,452,000 2,196,427
Taxation 900,000 1,052,886
Profit for the year 1,552,000 1,143,541
Headline earnings per ordinary
share (cents) 27.7 25.2
Earnings per ordinary share (cents) 8.9 6.6
Dividends per ordinary share (cents) 17.0 19.0
Dividend cover excluding exceptional
item (times) 1.6 0.4
Total number of shares in issue 17,372,300 17,372,300
Net asset value per ordinary
share (cents) 414 402
Headline earnings reconciliation
Net profit for the year 1,552,000 1,143,541
Exceptional items (3,260,000) (3,241,799)
Headline earnings 4,812,000 4,385,340
Note 1: Execeptional item (3,260,000) (3,241,799)
Deficit from revaluation of
land & buildings (9,196,000) (6,080,216)
Surplus on sale of investment in
associated company 41,560
Surplus on foreign exchange 10,670,000 588,112
Realised gain on sale of listed shares 2,977,811
Surplus on revaluation of overseas
investments 361,000 -
Loss on devaluation of overseas
investments (5,516,000) (769,066)
Profit on devaluation of local
investments 421,000 -
ABRIDGED BALANCE SHEET
Investment properties 65,000,000 74,040,000
Investments 26,736,000 20,982,688
Other fixed assets 512,000 427,879
Current assets 10,226,000 4,100,329
Cash 5,772,000 3,956,339
Total Assets 108,246,000 103,507,235
Equity and Reserves 72,004,000 69,896,047
Interest bearing borrowings 20,726,000 20,807,262
Deferred taxation 6,912,000 7,771,498
Current liabilities 5,011,000 4,001,231
Bank overdraft 3,593,000 1,031,197
Total Equity and Liabilities 108,246,000 103,507,235
STATEMENT OF CHANGES IN EQUITY
Share Capital and Share Premium 26,809,000 26,809,026
Non-distributable Reserves 35,836,000 37,076,000
Balance at beginning of year 37,076,000 41,267,019
Property revaluation movement (4,749,000) (2,239,159)
Currency translation movement 3,509,000 879,759
Realisation of investment movement (2,831,619)
Distributable Reserves 9,359,000 6,011,021
Balance at beginning of year 6,011,000 5,928,598
Profit for the year 1,552,000 1,143,541
Transfer of property revaluation
to NDR 4,749,000 2,239,159
Dividends paid and recommended (2,953,000) (3,300,277)
Equity and Reserves at end of year 72,004,000 69,896,047
SUMMARISED CASH FLOW STATEMENT
Cash generated from operating activities 8,603,000 12,286,678
Interest and taxation paid (5,237,000) (4,096,864)
Operating cash flow 3,366,000 8,189,814
Dividends paid (2,953,000) (3,300,737)
Cash retained in operating activities 413,000 4,889,077
Net investment activities (1,159,000) (3,285,537)
Net cash generated/(utilised) (746,000) 1,603,540
COMMENTS
The results for the year under review reflect earnings per ordinary share of
8,9 cents (2000: 6,6 cents) and headline earnings per ordinary share of 27,7
cents (2000: 25,2). Interest paid for the year amounted to R3, 347,000
(2000: R1, 871,788) and includes the first full year of interest on monies
borrowed during the acquisition of our offshore share portfolio.
During the latter part of the year, there has been an increased demand for
leased premises and it is pleasing to report our property portfolio had an
occupancy rate of 95% at 31 December 2001. A valuation of the property
portfolio at 31 December 2001 by CB Richard Ellis on an "open Market" basis
was made at R65, 000,000 (2000: R74, 040,000).
The provisional financial statements of the group have been prepared in
accordance with the South African Statements of Generally Accepted
Accounting Practice.
In order to conform with the requirements of the South African accounting
standards, certain changes in accounting policies have taken place for this
year, and prior year figures have been restated. As such, provisions are no
longer raised for audit fees and property valuation fees until the services
have been rendered. Similarly, dividends are only accounted for on the date
of payment to shareholders. The revaluation movement of investment
properties is now recorded in the income statement, whereas previously it
was shown in the statement of changes in equity. The group now recognizes
the deferred taxation effects of revaluation movements on its property
reserves. This change of policy resulted in a decrease in deferred taxation
for the current year of R2, 089,122, a decrease in deferred taxation for the
prior year of R959, 640 and an increase in the deferred taxation reserve at
the beginning of the prior year of R8, 537,137.
Shareholders have been advised that the company's name was changed to
Marshalls Limited following the special resolution passed at the Annual
General Meeting held on 29 May 2001.
The group's permanent investment of listed shares in the United Kingdom, the
United States of America and Western Europe was valued on 31 December 2001
at approximately R26, 100,000 against a cost of R20, 000,000.
INDEPENDENT AUDITORS' REVIEW
The financial information set out in the provisional results has been
reviewed, but not audited, by our auditors, David Strachan & Tayler. Their
unqualified review report is available for inspection at the registered
office.
DIVIDEND DECLARATION
Notice is hereby given that the final dividend of 6,0 cents per ordinary and
"N" ordinary share in respect of the year ended 31 December 2001 has been
declared.
In accordance with the settlement procedures of STRATE, Marshalls has
determined the last date to trade to participate in the final dividend shall
be Friday, 8 March 2002. The shares will commence trading ex-dividend from
Monday, 11 March 2002, and the Record date will be Friday, 15 March 2002.
Dividends will be paid on Monday, 18 March 2002.
Share certificates may not be dematerialised or rematerialised between
Monday, 4 March 2002 and Friday, 15 March 2002, both days inclusive.
BY ORDER OF THE BOARD
DC Marshall, PN Lonsdale (Directors)
22 February 2002
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