| Fri 22 Mar 2002, 0:00 | | Marlin Corporation Limited: Audited Results For Th |
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2001
MARLIN CORPORATION LIMITED
(Registration number 1987/000717/06)
JSE Share code: MLN ISIN: ZAE000004511
Audited results for the year ended 31 December 2001
CONSOLIDATED INCOME STATEMENTS
Audited Unaudited
31 Dec 31 Dec % 30 June
R'm 2001 2000 change 2001
Turnover 705,3 620,3 14 337,5
Operating income 29,4 18,8 56 20,8
Dividends received 0,2 0,1 100 0,1
Net finance charges (3,0) (10,2) (71) (2,1)
Foreign exchange gain 28,9 35,3 (18) 8,7
Exceptional items -
non-recurring (3,2) (4,4) (27) (3,2)
Income before taxation 52,3 39,6 32 24,3
Taxation (19,2) (19,9) (4) (12,2)
Income after taxation 33,1 19,7 68 12,1
Earnings attributable to
outside shareholders 0,5 1,6 (69) (0,5)
Net profit 33,6 21,3 58 11,6
Earnings per share (cents)
- net earnings per share 9,95 6,34 57 3,43
- before foreign exchange profit 1,39 (4,12) 134 0,84
- headline earnings 10,30 7,60 36 4,32
Weighted average ordinary
Shares in issue ('000) 37 855 337 855 337 855
CONSOLIDATED BALANCE SHEETS
Audited Unaudited
31 Dec 31 Dec % 30 June
R'm 2001 2000 change 2001
Shareholders' funds
Ordinary shareholders' equity 381,2 289,8 32 304,7
Outside shareholders' interest 8,0 14,9 (46) 12,4
389,2 304,7 28 317,1
Deferred tax 2,9 7,4 (61) 7,3
Interest bearing debt
Long-term borrowings 36,9 24,3 52 20,9
Short-term borrowings 12,2 14,2 (14) 15,5
49,1 38,5 28 36,4
Total capital employed 441,2 350,6 26 360,8
Fixed assets and investments
Operating assets 175,7 137,3 28 137,8
Mining/Quarrying rights 41,3 29,9 38 28,0
Investments and loans 26,2 37,8 (31) 38,8
243,2 205,0 19 204,6
Current assets
Inventories 110,5 89,0 24 83,7
Accounts receivable 347,7 206,1 69 254,9
458,2 295,1 55 338,6
Total assets 701,4 500,1 40 543,2
Less: Current liabilities:
Net overdraft (61,1) (17,4) 251 (13,9)
Accounts payable (169,3) (116,9) 45 (153,6)
Taxation (29,8) (15,2) 96 (14,9)
Employment of capital 441,2 350,6 26 360,8
CONSOLIDATED CASH FLOW STATEMENTS
Audited Unaudited
31 Dec 31 Dec 30 June
R'm 2001 2000 2001
Cash generated from operations 137,9 102,8 51,8
Working capital movements (117,3) (17,5) (6,8)
Dividends received 0,2 0,1 0,1
Net interest paid (3,0) (10,2) (2,1)
Preference dividend paid (0,7) (2,7) (0,4)
Taxation paid (9,1) (1,7) (12,7)
Net cash inflow from operations 8,0 70,8 29,9
Investment activities
- maintaining operations (64,8) (38,8) (21,8)
- other investments 0,8 0,0 0,0
- proceeds on sale of subsidiary 4,7 0,0 0,0
Net cash outflow from
investment activities (59,3) (38,8) (21,8)
Financing activities
- long-term borrowings raised/(repaid) 12,6 (10,0) (3,4)
- short-term borrowings (repaid)/raised (2,0) (11,2) 1,4
- outside shareholders' interest (3,0) (21,7) (2,6)
Net cash inflow/(outflow) from
financing activities 7,6 (42,9) (4,6)
(Increase)/decrease in net overdraft (43,7) (10,9) 3,5
Net overdraft at beginning of period (17,4) (6,5) (17,4)
Net overdraft at end of period (61,1) (17,4) (13,9)
STATEMENTS OF CHANGES IN EQUITY
Audited Unaudited
31 Dec 31 Dec 30 June
R'm 2001 2000 2001
Share capital and premium
Opening balance 288,8 288,8 288,8
Closing balance 288,8 288,8 288,8
Reserves
Opening balance 1,0 (23,8) 1,0
Net income for period 33,6 21,3 11,6
Currency translation difference 57,8 3,5 3,3
Closing balance 92,4 1,0 15,9
Total shareholders' equity
Opening balance 289,8 265,0 289,8
Net income for period 33,6 21,3 11,6
Currency translation difference 57,8 3,5 3,3
Closing balance 381,2 289,8 304,7
SUPPLEMENTARY INFORMATION
Audited Unaudited
31 Dec 31 Dec 30 June
R'm 2001 2000 2001
1. Depreciation for period (45,9) (39,5) (18,9)
2. Calculation of headline earnings
Net profit 33,6 21,3 11,6
(Profit)/Loss on sale of fixed assets (2,0) 4,1 (0,2)
Loss/(Profit) on disposal of investment 3,2 (4,1) 3,2
Unlisted investment write-off 0,0 4,4 0,0
34,8 25,7 14,6
3. Capital expenditure for period 64,8 38,8 21,8
- maintaining operations 64,8 38,8 21,8
4. Number of shares in issue ('000) 337 855 337 855 337 855
5. Net asset value per share (cents) 112,83 85,76 90,18
6. Gearing as % of shareholders' equity 13,36 15,03 13,78
7. Annualised return on average
net assets (%) 8,81 7,36 7,60
PRODUCTION AND
SALES STATISTICS
8. Tons removed 3 536 732 3 504 423 1 629 072
9. Tons produced 345 777 336 251 165 023
10. Recovery (%) 9,78 9,60 10,13
11. m3 sold 115,806 116 457 59 105
12. Average Landed US$ CIF/m3 price 663 664 664
COMMENTS
Financial review
Headline earnings per share increased by 36% to 10,30 cents from 7,60 cents
in 2000.
Net turnover increased by 14% to R705,3 million (2000 - R620,3 million),
whilst group operating income increased to R29,4 million (2000 - R18,8
million).
The quarrying operations reported improved results compared with 2000 which
can be ascribed to better quarrying conditions as well as the impact of the
depreciation of the Rand on export sales towards the latter part of the
year. Results in the second six months were however prejudiced by production
difficulties and logistical problems relating to transport of material.
The beneficiation division improved on its 2000 performance even though a
net operating loss of R4,3 million was reported. The reduction in operating
loss for this division was mainly attributable to improved results from the
gangsaw plant in Ga-Rankuwa (NSP).
The block distribution division performed well and continued to expand its
international activities, including the establishment of a new stockyard
facility in Brazil. Dorking's bad debt provision has increased from R3,6
million in 2000 to R31,8 million in 2001, in line with auditors'
requirements. The rand amount of this increase was exacerbated by the
depreciation of the local currency.
Net finance charges reduced from R10,2 million in 2000 to R3,0 million,
mainly due to more competitive interest rates achieved on foreign borrowings
as well as increased interest earnings relating to export debtors.
Foreign exchange gains for the year amounted to R28,9 million compared with
R35,3 million in 2000. This gain was adversely affected by approximately
R16,9 million as a result of foreign exchange contracts entered into during
the course of the year.
The increased exchange rate for translating foreign entities at year end
had a significant impact on the values of assets and liabilities, notably
accounts receivable and total borrowings.
Total interest bearing debt, including off balance sheet debt and net bank
overdrafts increased to R115,0 million from R60,2 million at December 2000.
This related primarily to the conversion of foreign borrowings as mentioned
above. In US dollar terms the increase related directly to an amount of $1,4
million raised to finance the purchase of a warehouse for the distribution
centre in Atlanta, USA.
Capital expenditure of R64,8 million related to ongoing expenditure at
quarry level which was on a par with previous years, the purchase of the
Atlanta warehouse and the development of a stockyard in Brazil.
The debt equity ratio improved to 13,36% (December 2000 - 15,03%) and the
net asset value per share increased to 113 cents from 86 cents in December
2000.
OPERATIONAL REVIEW
Quarrying and distribution
The quarries performed below budget for the year. Volumes from the growing
Northern Cape operations were disappointing so that the Group's Southern
African production of 338 189 tons (88 997 m3) showed only a small increase
of 2,7% (2000 - 329 166 tons, 86 623 m3).
Sales of Southern African materials decreased slightly by 1,44% to 93 315 m3
(2000 - 94 676 m3) and trading in external materials increased by 8,2% to 20
510 m3 (2000 - 18 958 m3).
The logistical problems experienced in the second half of the year arose
from difficulty in obtaining a reliable service between inland assembly
points and the harbours. This impaired the Group's export capabilities and
resulted in material claims for demurrage from the shipping lines.
Political and logistical difficulties impacted adversely on quarrying
operations in Zimbabwe and Madagascar and the situation continues.
Logistical problems were also experienced in Mozambique. These investments
have a carrying value of R15,2 million, the fairness of which will be
reviewed during the course of the year subject to developments within these
countries.
Beneficiation
The better performance of the beneficiation division can mainly be
attributed to improved operating efficiencies at NSP. Production is now up
to world standards and costs are finely controlled.
The contracts division was heavily committed to the completion of the
Nedcor head office project which was carried out under difficult
circumstances. The final appearance of the building is, however, already
receiving wide acclaim.
The monumental slab factory situated in Brits (Impala Granite & Marble)
performed well and according to budget.
North America
The combined operations reported a further loss although the results
recorded an improvement on the previous year.
PROSPECTS
Demand for the Group's key materials remains strong but price competition
in the international market is particularly keen for both blocks and slabs.
The supply agreement for construction slabs between NSP and Matsushita
terminates on 30 September 2002 and alternative markets and clients are
presently being developed.
Currency markets remain volatile and will continue to impact on results.
The Group's controlling shareholder, Finstone SARL, has made an offer to
minority shareholders for their interests in Marlin Holdings and Marlin
Corporation by means of schemes of arrangement, with the Marlin Corporation
offer being structured by way of a simultaneous purchase by Finstone SARL
and repurchase of shares by Marlin Corporation, and attention is drawn to
the appropriate circulars to shareholders dated 4 March 2002. This offer
will be considered at scheme meetings which are due to be convened on 26
March 2002.
20 March 2002
Directors: JRR Koch* (Chairman), MV Marcenaro** (CEO), GR Treagus
(Managing Director), PJSJL Prinsloo, M Pedretti, JW Houghton*,
RA Koep*, DGK Fish*, *Non-executive **Italian
MARLIN HOLDINGS LIMITED
(Registration number 1984/000634/06)
JSE Share code: MNH ISIN: ZAE000012340
Audited results for the year ended 31 December 2001
Marlin Holdings Limited's investment in Marcorp is 192 934 106 ordinary
shares, being 57,1%. As a consequence, the only source of revenue of the
company is dividend income from Marcorp. No dividend was received from this
investment during this financial period. The results of Marcorp are reported
above and must be read in conjunction with this announcement.
CONSOLIDATED GROUP EARNINGS
Audited Unaudited
31 Dec 31 Dec % 30 June
R'm 2001 2000 change 2001
Attributable earnings
per Marcorp 33,6 21,3 58 11,6
Earnings attributable to
Outside shareholders (14,4) (9,1) 58 (5,0)
Earnings attributable to
Ordinary shareholders 19,2 12,2 57 6,6
Weighted average shares
in issue ('000) 370 875 370 875 370 875
Total shares in issue ('000) 370 875 370 875 370 875
Earnings per share (cents) 5,17 3,30 57 1,79
Headline earnings per share
(cents) 5,36 3,96 35 2,25
After adjustments for:
Headline earnings per Marcorp 34,8 25,7 14,6
Earnings attributable to
outside shareholders (14,9) (11,0) (6,2)
19,9 14,7 8,4
20 March 2002
Directors: JRR Koch* (Chairman), MV Marcenaro (CEO)**, GR Treagus (Managing
Director), M Pedretti, JW Houghton*, RA Koep*, DGK Fish*, *Non-executive
**Italian
