| Mon 25 Feb 2002, 0:00 | | Tiger Wheels Limited - Unaudited Interim Results F |
|
December 2001
Tiger Wheels Limited
Revenue Up 26%
Operating Income Up 59%
Headline Earnings per share Up 247%
Unaudited Interim Results for the six months ended 31 December 2001
Income Unaudited Audited
Statement
Six months ended Year ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Revenue 1,185,316 939,639 2,065,817
Operating income 58,924 37,104 106,949
Net financing costs (20,725) (14,927) (28,016)
Loss from associates (398) (2,292) (1,187)
Profit before taxation 37,801 19,885 77,746
Taxation (5,416) (5,349) (7,837)
Profit after taxation 32,385 14,536 69,909
Minority interest (1,248) (5,799) (16,361)
Earnings attributable to
ordinary shareholders 31,137 8,737 53,548
Reconciliation of headline
earnings
per share (cents)
Attributable earnings per share 52.7 15.1 92.1
Adjusted for :
- Goodwill amortised 0.4 0.2 1.4
- Write-down of investments / - - 4.1
loans
Headline earnings per share 53.1 15.3 97.6
(cents)
Ordinary shares ('000)
- Issued 59,798 58,588 58,588
- Weighted 59,081 57,742 58,159
Cash flow Unaudited Audited
statements
Six months ended Year ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Cash flows from
Operating activities 23,634 (44,505) 542
Investing activities (62,727) (74,897) (170,459)
Financing activities 65,380 (2,251) (12,775)
Movement in cash resources 26,287 (121,653) (182,692)
Cash resources at beginning of (123,321) 59,371 59,371
period
Cash resources at end of period (97,034) (62,282) (123,321)
Foreign exchange Unaudited Audited
rates - Euro/Rand
Six months ended Year ended
31 December 30 June
2001 2000 2001
End of period rate (balance 10.14 6.88 6.67
sheet)
Average rate (income statement) 8.27 6.39 6.63
Balance Unaudited Audited
sheet
at at
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
ASSETS
Non-current assets 783,485 573,430 618,675
Property, plant & equipment 738,694 527,792 573,617
Investment in associates 3,713 4,411 4,111
Other financial assets 41,078 41,227 40,947
Current assets 1,089,245 748,266 783,447
Other current assets 1,082,070 714,747 783,447
Bank and cash 7,175 33,519 -
Total assets 1,872,730 1,321,696 1,402,122
EQUITY AND LIABILITIES
Shareholders' equity 770,575 503,971 556,994
Shareholders' funds 706,289 447,442 493,956
Minority interest 64,286 56,529 63,038
Interest-bearing debt 366,493 303,230 320,225
Long-term debt 182,543 172,684 145,139
Current portion of long-term debt 79,741 34,745 51,765
Short-term borrowings 104,209 95,801 123,321
Interest-free liabilities 735,662 514,495 524,903
Trade and other payables 723,157 508,665 516,189
Deferred taxation 12,505 5,830 8,714
Total equity and liabilities 1,872,730 1,321,696 1,402,122
Net asset value per share (cents) 1,181 764 843
Statement of Unaudited Audited
changes in equity
Six months ended Year ended
31 December 30 June
2001 2000 2001
R'000 R'000 R'000
Equity at beginning of period 493,956 412,455 412,455
Changes in
Share capital, premium and 13,367 9,794 9,794
reserves
Non-distributable reserves 189,738 14,713 17,519
Accumulated profit 9,228 10,480 54,188
Earnings attributable to ordinary
shareholders 31,137 8,737 53,548
Capitalisation award and dividend (22,307) (549) (547)
Associated companies 398 2,292 1,187
Equity at end of period 706,289 447,442 493,956
Segmental Unaudited
analysis
6 months ended December 2001
ATS group Balance of Total
R'm group R'm R'm
Revenue
Manufacturing 779 174 953
Wholesale 79 99 178
Retail - 179 179
Group services and inter- (53) (72) (125)
group eliminations
805 380 1,185
Operating Income
Manufacturing 37 21 58
Wholesale (10) (1) (11)
Retail - 14 14
Group services and inter- (3) 1 (2)
group eliminations
24 35 59
Capital expenditure 52 11 63
Depreciation 41 21 62
Future capital commitments 69 8 77
Approved
Unaudited
6 months ended December 2000
ATS group Balance of Total
R'm group R'm
R'm
Revenue
Manufacturing 562 171 733
Wholesale 47 70 117
Retail - 156 156
Group services and inter- (27) (39) (66)
Group eliminations
582 358 940
Capital expenditure 44 (11) 33
Depreciation (8) 1 (7)
Wholesale - 6 6
Retail - 5 5
Group services and inter- 36 1 37
Group eliminations
Capital expenditure 51 13 64
Depreciation 23 18 41
Future capital 26 15 41
Commitments Approved
Audited
Year ended 30 June 2001
ATS group Balance of Total
R'm group R'm
R'm
Revenue
Manufacturing 1,331 341 1,672
Wholesale 124 145 269
Retail - 285 285
Group services and inter- (69) (91) (160)
Group eliminations
1,386 680 2,066
Operating Income 107 (11) 96
Manufacturing (9) 2 (7)
Wholesale - 19 19
Retail (11) 10 (1)
Group serviced and inter- 87 20 107
Group eliminations
Capital expenditure 99 34 133
Depreciation 42 41 83
Future capital 113 22 135
Commitments approved
COMMENTS
Nature of business
Tiger Wheels Limited ("Tiwheel") is a group of companies focused on the
automotive aluminium wheel and passenger car tyre industries. The group
operates internationally, with wheel manufacturing plants in Germany, Poland
and South Africa, wholesale wheel distribution throughout Europe, North
America and South Africa and tyre distribution in the United Kingdom and
South Africa.
The group's 32 Tiger Wheel & Tyre retail stores in southern Africa (25 owned
and seven franchised) cover all major centres and hold a significant share
of the replacement passenger tyre and wheel business in the region.
Results
The most significant impact on the results has been the 34% devaluation of
the Rand against the Euro, as the greater part of the group's equity and
income is foreign based. This has resulted in an increase in the group's
equity of R190 million which is not accounted for in the income statement.
The increase in earnings per share is, to a great extent, due to the benefit
of this devaluation as well as the low earnings base for the comparative
period last year. The significant improvement in the Babelegi wheel
manufacturing business was achieved despite the cost of motor industry
strikes and retrenchments in the first quarter. The ATS group performed
below budget, partly due to lower demand induced by September 11 and partly
due to the devaluation of the Zloty against the Euro, a major part of the
ATS group activities being based in Poland. The South African Tiger Wheel &
Tyre Retail Group and the wholesale business of Yokohama SA also reflected
an enhanced performance.
Prospects
While the group's manufacturing businesses focus primarily on top line
European car manufacturers, the aftermath of the September 11 disaster had
worldwide repercussions and affected off-take from new car manufacturers
against order estimates previously placed. The short-term impact is that
the group's capacity is not fully utilised for the next few months.
Increased orders for new products, which are currently under development,
should ensure a full order book thereafter.
The devaluation has significantly improved the competitiveness of the
Babelegi wheel plant, which comprises approximately 25% of the group's wheel
manufacturing capacity. Foreign earnings should increase on a sustainable
basis for the same reason.
The planned new ATS wheel factory in America is scheduled for first
deliveries towards the end of 2003, in line with the introduction of new
vehicle models of our customers.
In the absence of unforeseen circumstances (including no major move in the
Euro/Rand exchange rate), the group is looking to show a meaningful increase
in earnings per share for the full year. The percentage, however, should not
be as high as that achieved in the first half of the year.
Accounting policies
The results for the half-year have been prepared in accordance with South
African statements of Generally Accepted Accounting Practice. The
accounting policies used are consistent with those used in the comparable
period and the financial statements for the year ended June 30, 2001.
Dividend
It is a company policy to declare an annual dividend at the year-end.
By order of the board
Diane Cousins
Secretary
dianec@tsw.co.za
26 February 2002
Direcors:
Eddie Keizan (joint chairman and chief executive), Martin Glatt (joint
chairman)*, Jacques Desmidt*, Rainer Hagemann (German)*' Josh Loots, Keith
Rivers, Annette StahLschmidt (German)*, Siegfried Teichert (German)
* Non-executive
Tiger Wheels Limited
Registration number 1970/011662/06
(Incorporated in the Republic of South Africa)
Registered Office:
Corner Old Pretoria Road and K101, Midrand, 1685
Tel: (011) 256-4500 Fax (011) 256-4545
Transfer Secretaries:
Mercantile Registrars Limited
Registration number 1987/003382/06
8th floor, 11 Diagonal Street, Johannesburg
PO Box 1053, Johannesburg, 2000
