| Mon 6 May 2002, 0:00 | | Midas Limited - Preliminary Profit Statement For |
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Midas Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/002260/06)
Share code: MDS
ISIN code: ZAE000004420
Group Income Statement
Audited Audited
March March
2002 2001 %
R'000 R'000 Change
Revenue 985 592 914 578 8
- continuing operations 985 592 867 095 14
- discontinued operations - 47 483
Operating income 29 684 28 361 5
- continuing operations 29 684 31 831 (7)
- discontinued operations - (3 470)
Net interest paid (2 040) (520)
Income before exceptional items 27 644 27 841 (1)
Exceptional items - (11 957)
Income before taxation 27 644 15 884 74
Taxation (7 479) (3 678)
Income after taxation 20 165 12 206 58
Outside shareholders' interest (16) (36)
Earnings attributable to
shareholders 20 149 12 170 58
Dividends (7 435) (7 434)
Retained income for the year 12 714 4 736
Earnings per share (cents)
Earnings per share 67.8 40.9 58
Headline earnings per share 67.3 73.0 (12)
Dividend per share (cents) 25.0 25.0 0
Final No 50 of 9 cents (48: 9 cents) 9.0 9.0
Interim No 51 of 16 cents (49: 16 cents) 16.0 16.0
Dividend cover - headline earnings 2.7 2.9
Exceptional items before taxation
Loss on the disposal and
discontinuation of businesses - 11 957
Tax relief attributable to
exceptional items - 2 117
Headline earnings reconciliation
Earnings per the income statement 20 149 12 170
Adjusted for: (147) 9 541
Exceptional items - 11 957
Profit on sale of property, plant and (210) (299)
equipment
(210) 11 658
Tax relief attributable to adjustments (63) 2 117
Headline earnings 20 002 21 711
Group Abridged Balance Sheet
Audited Audited
March March
2002 2001
R'000 R'000
Assets
Non-current assets 15 596 17 140
Property, plant and equipment 11 994 13 721
Other investment 2 000 2 000
Deferred taxation 1 602 1 419
Current assets 337 936 283 101
Inventories 177 294 126 296
Trade and other receivables 116 823 112 113
Cash and cash equivalents 43 819 44 692
Total assets 353 532 300 241
Equity and liabilities
Capital and reserves 171 064 158 334
Ordinary shareholders' funds 170 169 157 455
Outside shareholders' interest 895 879
Non-current liability
Long-term borrowings 299 -
Current liabilities 182 169 141 907
Trade and other payables 181 990 141 907
Short-term borrowings 179 -
Total equity and liabilities 353 532 300 241
Additional financial information
Net cash and cash equivalents 43 341 44 692
Long-term borrowings (299) -
Short-term borrowings (179) -
Cash and cash equivalents 43 819 44 692
Net operating assets 127 723 113 642
Total assets 353 532 300 241
Trade and other payables (181 990) (141 907)
Cash and cash equivalents (43 819) (44 692)
Contingent liabilities 8 630 10 364
Lease liabilities 8 630 10 094
Other - 270
Operating lease commitments 87 192 101 809
Net asset value per share (cents) 572 530
Capital expenditure 4 277 7 717
Replacement 4 277 5 539
Expansion - 2 178
Ordinary shares (000)
Issued 29 734 29 734
Weighted average 29 734 29 734
Group Cash Flow Statement
Audited Audited
March March
2002 2001
R'000 R'000
Net cash inflow from operating activities 1 981 12 362
Operating cash flow 34 743 24 127
Movement in working capital (16 975) (3 126)
Net interest paid (2 040) (520)
Taxation paid (6 315) (696)
Dividends paid (7 432) (7 423)
Net cash (outflow)/inflow from investing activities (3 332) 11 969
Capital expenditure (4 277) (7 717)
Proceeds on disposal of plant and equipment 945 1 939
Proceeds on disposal of businesses 17 747
Net cash inflow/(outflow) from financing activities 478 (334)
(Decrease)/increase in outside shareholders' interest - (88)
Net increase/(repayment) of long-term borrowings 478 (246)
Net cash (outflow)/inflow (873) 23 997
Cash and cash equivalents at beginning of year 44 692 20 695
Cash and cash equivalents at end of year 43 819 44 692
Statement of Changes in Equity
Audited Audited
March March
2002 2001
R'000 R'000
Balance at beginning of year 157 455 152 719
Attributable earnings for the year 20 149 12 170
Dividends (7 435) (7 434)
Balance at end of year 170 169 157 455
Commentary
Revenue from ongoing operations increased by 14% for the year under review
to R986 million. Operating income increased by 5% to R29,7 million, with the
adverse impact of competitive pressures on margins having been largely
offset by a pro-active containment of the cost base at below inflationary
levels. EBITDA, at R35 million, represented 3.6% of sales compared to 3.7%
in the previous year. Pre-tax income was significantly ahead of the previous
year primarily due to closure costs incurred in the comparative period. An
increase in the current year's effective tax rate from 23.2% to 27.0%
contributed to an 8% decline in headline earnings per share to 67.3 cents.
Worthy of note is the fact that second half headline earnings per share were
69% up on the first half, and 84% better than the previous year. This is
ascribed to the general improvement reflected in the retail sector as well
as an aggressive attempt to gain market share off a lower cost base.
Cash on hand reduced by R0.9 million to R43.8 million due to the increased
investment in inventories, a large proportion of which are imported. Despite
this, net working capital days have been further reduced in the year.
The annual financial statements have been prepared in accordance with
statements of GAAP. The accounting policies used are consistent with those
used in the previous financial period.
Prospects
The increased customer spend experienced in the latter part of the financial
year should continue, and this, together with the combined effect of a
greater market share, focused customer service and the lower cost base
should underpin the group's ongoing competitiveness, and result in earnings
growth.
Final Dividend No.52
Notice is hereby given that a final dividend of 9 cents per share has been
declared in respect of the year ended 31 March 2002. Trading in the STRATE
environment requires settlement within five business days. In accordance
with the settlement procedures of STRATE, Midas has determined the last day
for trading to participate in the final dividend to be
Friday, 24 May 2002. The shares will commence trading ex-dividend on Monday,
27 May 2002, and the record date will be Friday, 31 May 2002. Payment will
be made on Monday, 3 June 2002. Certificated shareholders may not
dematerialise their shares between Monday, 20 May 2002 and Friday, 31 May
2002.
By order of the Board
W W Cooper (Chairman) G L Odgers (Chief Executive Officer)
Johannesburg
6 May 2002
Midas Limited
(Incorporated in the Republic of South Africa)
(Registration number 1968/002260/06)
Share code: MDS
ISIN code: ZAE000004420
Registered Office
Midas Building, 294 Brickfield Road, Meadowdale, Germiston
Postal Address
Private Bag X10028, Edenvale 1610
Transfer Secretaries
Mercantile Registrars Limited, PO Box 1053,
Johannesburg 2001
Group Secretary: J G de Swardt
Directors
W W Cooper* (Chairman), E J Vorster* (Vice Chairman),
G L Odgers (Chief Executive Officer), S J Connelly*, N D Dyer,
R D Gudegast* (German), D C Hill, D Orwin*, M J Self, I W Espinoza
(Alternate), S Le Roux (Alternate).
*Non-executive
E-mail: group@midas.co.za
Website: www.midas.co.za
