| Wed 27 Mar 2002, 0:00 | | Putco Properties: Financial Report |
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Putco Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/001085/06)
JSE Share code: PPR ISIN: ZAE000005567
("the Group")
Income statements
Six months ended Year ended
31 December Increase/ 30 June
2001 2000 (Decrease) 2001
Rm (unaudited) (unaudited) % (audited)
Gross rentals 14,1 13,7 2,9 27,3
Cost of operating 1,2 0,5 140,0 1,6
Income before finance
costs and taxation 12,9 13,2 (2,3) 25,7
Net finance income 0,7 0,4 1,2
Income before taxation 13,6 13,6 0,0 26,9
Taxation 4,8 5,0 9,3
Headline earnings 8,8 8,6 2,3 17,6
Profit on disposal of
fixed assets - 0,3 0,3
Ordinary earnings 8,8 8,9 1,1 17,9
Shares in issue
(weighted number)(millions) 28,8 28,8 28,8
Headline earnings
per share (cents) 30,6 29,9 2,3 61,1
Ordinary earnings
per share (cents) 30,6 30,9 1,0 62,2
Ordinary dividend
per share (cents) 70,0 14,0 40,0
Balance sheets
31 December 30 June
2001 2000 2001
Rm (unaudited) (unaudited) (audited)
ASSETS
Non-current assets 123,0 118,6 119,2
Current assets 13,3 8,7 13,8
Trade and other receivables 0,1 7,2 2,5
Bank, call and current accounts 13,2 1,5 11,3
Total assets 136,3 127,3 133,0
EQUITY AND LIABILITIES
Equity capital and reserves 133,1 124,8 129,7
Non-current liabilities 0,6 0,7 0,6
Current liabilities 2,6 1,8 2,7
Total equity and liabilities 136,3 127,3 133,0
CAPITAL EXPENDITURE
- incurred 1,8 0,2 0,8
- authorised but not contracted for - 0,6 -
RATIOS
Net asset value per share (cents) 462 433 450
Notes:
Changes in accounting policy
The interim results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting
policies are consistent with those applied in the last annual report, except
for the adoption of the following new accounting policies:
- Provision for dividend
AC 107 (revised) - Events after Balance Sheet Date - precludes the raising
of a provision for any dividends declared after balance sheet date.
Dividends, including any applicable Secondary Tax on Companies charge, will
now be accounted for as and when declared.
The adoption of AC 107 (revised) has resulted in the Group adjusting the
opening balance of distributable reserves at 1 July 2001 by R8,4 million
(2000: R7,8 million),
- Revaluation of investment property
AC 135 - Investment Property - requires investment property to be recorded
at fair value, with any change in the fair value to be included in the
income of the period in which the value changes occurred. The properties
were revalued during September 2001 and an amount of R2,1 million (2000:
nil) was credited to the income statement.
Cash flow statements
Six months ended Year ended
31 December 30 June
2001 2000 2001
Rm (unaudited) (unaudited) (audited)
Cash inflow from operating activities 3,7 (4,7) 5,5
Cash receipts from customers 17,5 7,6 25,5
Cash paid to suppliers (1,0) (0,1) (1,1)
Net cash generated from operations 16,5 7,5 24,4
Investment income 0,7 0,4 1,2
Taxation paid (6,0) (5,7) (9,2)
Dividends paid (7,5) (6,9) (10,9)
Cash outflow from investing activities (1,8) 2,8 2,5
Maintain operations (1,8) (0,2) (0,8)
Proceeds on disposal of property - 3,0 3,3
Net cash inflow/(outflow) 1,9 (1,9) 8,0
Bank balance at beginning of period 11,3 3,4 3,3
Bank balance at end of period 13,2 1,5 11,3
Statement of changes in equity
Share Non-
capital and distributable Distributable
Half-year ended premium reserves reserves Total
31 December 2001 Rm Rm Rm Rm
At 30 June 2001, as
previously reported 4,1 70,1 47,1 121,3
Adjusted for changes in
accounting policies
as detailed below:
- Accounting for
investment property in
accordance with AC13S (68,8) 68,8
- Accounting for dividends
payable in accordance with
AC 107 (revised) 8,4 8,4
At 30 June 2001,
as restated 4,1 1,3 124,3 129,7
Surplus in valuation
of properties 2,1 2,1
Earnings per income statement 8,8 8,8
Dividend paid (7,5) (7,5)
At 31 December 2001 4,1 1,3 127,7 133,1
Half-year
ended 31 December 2000
At 30 June 2000, as
previously reported 4,1 72,8 38,1 115,0
Adjusted for changes in
accounting policies
as detailed below:
- Accounting for
investment property in
accordance with AC13S (68,8) 68,8
- Accounting for dividends
payable in accordance with
AC 107 (revised) 7,8 7,8
At 30 June 2000,
as restated 4,1 4,0 114,7 122,8
Earnings per income statement 8,9 8,9
Dividend paid (6,9) (6,9)
At 31 December 2001 4,1 4,0 116,7 124,8
General review
Gross rental income remained basically the same, when compared to the same
period in 2000. The Edenvale property was sold, the Wynberg and Faraday
property lease agreements expired on 31 December 2000. The Mamelodi property
was purchased on 1 July 2001. The net effect of these changes and the 9%
escalation in rentals equated with each other.
The cost of operating increased from R0,5 million to R1,2 million. The
current period's figure of R1,2 million includes the rates and taxes for the
properties where the leases have expired.
Interest received on improved bank, call and current account balances
increased from R0,4 million to R0,7 million for the comparable period.
Net income before taxation was R13,6 million (2000: R13,6 million).
Future prospects
The long-term lease at our Prospecton property in KwaZulu-Natal expired in
February 2002. We were unable to secure a suitable new tenant. A detailed
investigation was conducted regarding other properties in the area that were
sold or are for sale. In light of the findings and the large availability of
adjacent vacant premises we considered it advisable to dispose of the
property. The property was sold for R12,4 million, excluding VAT.
Our Inanda property in KwaZulu-Natal was sold for R0,3 million and transfer
was registered in February 2002. With these two sales we no longer have any
property interests in KwaZulu-Natal.
The Faraday property in Eloff Street Extension, Johannesburg has been sold
for R3,3 million. The book value was R3,2 million. As stated previously, the
rental agreement expired with Putco Limited last year and this sale will
improve the results of the Group.
We are endeavouring to find tenants for any vacant premises or purchasers in
other cases.
Our Wembly property, in Johannesburg South, has been rented to a third party
with an option to purchase in October 2002.
We have offers to purchase our Wynberg, Sandton and our Baragwanath, Soweto
properties and these are being considered. These sales will improve the
results of the Group.
A revaluation of all the properties was undertaken in September 2001, in
light of the Capital Gains Tax requirements. The surplus arising on current
valuation and the concomitant increase in distributable reserves is R2,1
million.
Dividend declaration
Your directors have taken the view that it is not the correct time to engage
in other property development projects utilising the surplus cash generated
by the sale of properties. Therefore, the directors have decided to declare
an interim dividend that includes a redistribution of part of the cash to
shareholders.
Notice is hereby given that an interim dividend of 70 cents (31 December
2000: 14 cents) per share has been declared in respect of the six months
ended 31 December 2001, payable on 22 April 2002. The last day to trade to
participate in the dividend will be 12 April 2002 and the shares will
commence trading, ex-dividend, from the commencement of business on 15 April
2002 and the record date will be 19 April 2002.
Certificated shareholders may not dematerialise or rematerialize their
shares between Monday, 8 April 2002 and Friday, 19 April 2002, both dates
inclusive.
On behalf of the board
A Carleo (Chairman and Chief Executive Officer)
E M R L Oldham (Managing Director)
28 March 2002
Registered office Transfer secretaries
5 Mimosa Way Mercantile Registrars Limited
Mimosa Park 8th Floor, 11 Diagonal Street,
Gallo Manor, Sandton, 2194 Johannesburg, 2001.
(Private Bag 3, (PO Box 1053,
Wendywood, 2144) Johannesburg, 2000)
