| Mon 25 Feb 2002, 0:00 | | Transpaco Limited - Group Results |
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Transpaco Limited
Reg.No. 1951/000799/06
ISIN: ZAE000007480 Share code: TPC
GROUP RESULTS FOR THE
6 MONTHS ENDED 31 DECEMBER 2001
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months % 12 months
R000's Dec-2001 Dec-2000 Change Jun-2001
Turnover 146 242 137 336 6,5 250 675
Cost of sales 98 491 93 647 169 881
Gross Profit 47 751 43 689 80 794
Operating costs 31 945 33 668 68 257
Operating income before
depreciation & finance costs 15 806 10 021 12 537
Depreciation 4 261 3 352 7 439
Net finance charge 3 339 2 672 5 999
Income/(loss) before taxation 8 206 3 997 (901)
Taxation 1 671 1 401 (237)
Income/(loss) after taxation 6 535 2 596 151,7 (664)
Exceptional item - - 516
Income/(loss) after taxation and
exceptional item 6 535 2 596 (148)
Weighted no. of ordinary
shares in issue (000's) 30 108 31 410 30 108
Earnings/(loss) per share (cents) 21,7 8,2 164,6 (0,5)
Headline earnings/(loss)
per share (cents) 21,7 8,2 (2,4)
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months 12 months
R000's Note Dec-2001 Dec-2000 Jun-2001
ASSETS
Non-current assets 62 109 64 187 65 223
Property, plant and equipment 59 252 63 523 62 424
Deferred taxation 1 830 62 1 730
Intangibles 1 027 602 1 069
Current assets 92 745 105 848 82 226
Inventories 16 672 27 447 22 029
Accounts receivable 73 012 76 838 56 499
Taxation 3 025 1 526 3 657
Cash resources 36 37 41
TOTAL ASSETS 154 854 170 035 147 449
EQUITY AND LIABILITIES
Capital and reserves 67 974 64 947 61 439
Issued capital 301 301 301
Reserves 5 525 5 525 5 525
Accumulated profit 62 148 59 121 55 613
Non-current liabilities 20 527 23 657 22 726
Interest bearing borrowings 18 681 21 222 21 284
Deferred taxation 1 846 2 435 1 442
Current liabilities 66 353 81 431 63 284
Trade and other payables 39 598 58 395 36 432
Taxation 152 - 706
Bank overdraft 21 099 17 068 19 874
Current portion of interest
bearing borrowings 5 504 5 968 6 272
TOTAL EQUITY AND LIABILITIES 154 854 170 035 147 449
Number of shares in issue (000's) 32 711 32 711 32 711
Repurchase of shares (000's) 1 2 603 2 603 2 603
Ranking number of shares (000's) 30 108 30 108 30 108
Net asset value per share (cents) 226 215 204
Gearing ratio (%) 67 68 77
Note:
1. A wholly-owned subsidiary of Transpaco purchased 2 602 777 Transpaco
shares with effect from 1 October 2000, in terms of the specific authority
approved by shareholders on 17 January 2001.
ABRIDGED CONSOLIDATED CASH FLOW
Unaudited Unaudited Audited
6 months 6 months 12 months
R000's Dec-2001 Dec-2000 Jun-2001
Operating cash flow 15 741 9 654 12 481
Proceeds Bubble Pac - - 516
Movement in working capital (7 990) (3 795) 1 540
Net interest paid (3 339) (2 672) (5 999)
Taxation paid (1 289) (1 543) (4 549)
Dividend paid - (1 636) (1 635)
Cash generated from operating activities 3 123 8 2 354
Net (outflow)/inflow from
financing activities (3 371) 2 638 3 005
Net fixed assets acquired (982) (9 740) (15 255)
Net movement in cash for the period (1 230) (7 094) (9 896)
Opening net cash resources (19 833) (9 937) (9 937)
Closing net cash resources (21 063) (17 031) (19 833)
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
R000's Dec-2001 Dec-2000 Jun-2001
Opening balance 61 439 66 846 66 846
Prior year adjustment
- depreciation of buildings - - (835)
Prior year adjustment - taxation - (71) -
Earnings attributable to shareholders 6 535 2 596 (148)
Repurchase of share capital & share premium - (4 424) (4 424)
Closing balance 67 974 64 947 61 439
Transpaco is a leading manufacturer and distributor of plastic and packaging
products focused on sustainable growth activities, satisfying the needs of
its customers, shareholders and employees whilst remaining committed to the
protection of the environment and dedicated to the conservation and re-use
of natural resources.
FINANCIAL RESULTS
Due to improved margins, stringent cost controls and effective asset
management, the results for the six-month period are extremely pleasing
given the difficult market conditions in which Transpaco operates.
Turnover grew by 6% from R137,3 million to R146,2 million. Income after
taxation increased significantly from R2,6 million to R6,5 million with
headline earnings per share improving from 8,2 cents to 21,7cents.
Due to the seasonal nature of the group's business, working capital
requirements peak at the end of December each year. As a result of positive
cash flow, interest bearing debt has reduced by R8,7 million from 31
December 2001 to date of this report.
All subsidiaries traded profitably except for Perana Plastics which is
currently being scaled down.
ACCOUNTING POLICIES
The report is prepared using accounting policies consistent with those
applied in the last annual report and in terms of GAAP except for adoption
of AC123-Property, Plant and Equipment. The statement is effective for
Transpaco from 1 July 2001 and requires depreciation of all owner occupied
property. The impact of the change in accounting policy is a reduction of
R835 000 in the opening accumulated profit. In the period under review, an
amount of R104 000 is included in depreciation (2000: nil).
PROSPECTS
The successful strategies implemented in the review period should result in
further profit improvement for the remainder of the financial year. The
group has sufficient manufacturing capacity to cater for organic growth and
does not anticipate any meaningful capital expenditure in the short term.
The group is currently initiating an aggressive export programme, which is
in its infancy. Initial responses are encouraging.
The endeavours of the Department of Environmental Affairs and Tourism to
restrict the manufacture of thin plastic carrier bags in South Africa has
not been finalised. We are confident that a solution beneficial to both the
environment and our industry will be found.
DIVIDEND
The group is committed to further reducing debt. Consequently no dividend
has been declared for the period.
On behalf of the Board:
PN Abelheim SL Chaitel
Chairman & Chief Executive Financial Director
25 February 2002
Directors:
PN Abelheim, AJ Aaron*; HA Botha; JS Botha; SR Bouzaglou; SL Chaitel,
DR Hilewitz*; SI Jacobson*; JL Pamensky*; AC Salomon* *Non-executive
Auditors: Ernst & Young
Registered Office: Transfer Secretaries:
331 Sixth Street Mercantile Registrars Ltd
Wynberg 11 Diagonal Street
Sandton Johannesburg
