| Tue 4 Jun 2002, 0:00 | | Intertrading Ltd - Audited Results For The Year |
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Intertrading Ltd - Audited results for the year ended 28 February 2002
Intertrading Limited
Registration number 1987/004777/06
("Intertrading" or "the company")
Share code: ITR
ISINcode: ZAE000015566
Audited results for the year ended 28 February 2002
Headline earnings per share up 83%
Turnover up 33%
Tangible NAV per share up 55%
Consolidated income statement
2002 2001
R`000 R`000
Revenue 418 043 315 500
Operating profit before interest
and amortisation of goodwill 18 445 9 133
Net interest received/(paid) 446 (1 158)
Amortisation of goodwill (2 048) (2 048)
Net income before taxation 16 843 5 927
Taxation (5 921) (831)
Net income after taxation 10 922 5 096
Income from associated companies 118 13
Net income attributable to shareholders 11 040 5 109
Consolidated balance sheet
2002 2001
R`000 R`000
ASSETS
Non-current assets
- Property, plant and equpiment 5 667 5 606
- Goodwill and trademarks 34 815 36 863
- Deferred taxation 809 -
- Investments 4 146 1 773
Current assets 118 649 88 082
164 086 132 324
EQUITY AND LIABILITIES
Share capital 5 000 5 000
Share premium 44 452 44 452
Foreign currency translation reserve 2 406 -
Distributable reserves 22 493 12 953
Shareholders` interest 74 351 62 405
Long-term liabilities 445 601
Deferred taxation 81 263
Current liabilities 89 209 69 055
164 086 132 324
Cash flow statement
2002 2001
R`000 R`000
Cash generated from operations 19 780 3 751
Net interest cash flow 446 (1 158)
Taxation paid (2 401) (757)
Dividend paid in respect of prior year (1 500) (1 500)
Cash generated by operating activities 16 325 336
Net cash flow from investing activities (3 293) (1 365)
Net cash flow from financing activities (156) 405
Net movement in cash 12 876 (624)
Net cash resources at beginning of the year (3 670) (3 046)
Net cash resources at end of the period 9 206 (3 670)
Statement of changes in equity
2002 2001
R`000 R`000
Equity at 28 February 2001 62 405 57 296
Net profit for the period 11 040 5 109
Foreign currency translation reserve 2 406 -
Dividend declared in respect of prior year (1 500) -
Equity at 28 February 2002 74 351 62 405
Financial highlights
2002 2001
R`000 R`000
Number and weighted average number
of ordinary shares in issue (000) 50 000 50 000
Headline earnings per share 26,2 cents 14,3 cents
Earnings per share 22,1 cents 10,2 cents
Net asset value per share - excluding
goodwill 79,1 cents 51,1 cents
Nature of business
Intertrading is an international agricultural business service company
focusing on:
1. The procurement and international marketing of Southern African fruit and
nuts via sea- and airfreight, and
2. The international trading of agricultural commodities.
Dr Alfred Hahn
At some time between the evening of Tuesday 7 May 2002 and Wednesday 8 May
2002, Dr Alfred Hahn, the financial director of Intertrading, was abducted
from outside his home in Hyde Park.
To date the company has no information on the whereabouts or condition of Dr
Hahn. Close liaison is being maintained with the appropriate authorities,
with the utmost concern for the safety of Dr Hahn and the well-being of his
family.
In the meantime there has been no disruption to the operations of the
company and Dr Hahn`s function is being fulfilled by other members of
Intertrading.
Comment on results
The statement of these results was prepared in accordance with South African
statements of Generally Accepted Accounting Practice and is consistent with
prior years.
Intertrading has produced very pleasing results for the year to end-February
2002. Headline earnings per share increased by 83% over the prior year on a
turnover increase of just 33%, reflecting much improved margins. Compound
annual growth in headline earnings per share since 1999 has been 22,3%.
Tangible net asset value per share rose by 55% to 79,1 cents. The difference
between headline earnings per share and earnings per share is represented by
amortisation of goodwill, of R2 048 million.
Of current liabilities of R89,2 million, R55 million consists of short-term
structured finance agreements implemented by Inter Africa to purchase stock
for distribution into sub-Saharan Africa to meet the demand in the region
for critical food shortages.
Divisional breakdown of operating income before interest and taxation:
Percentage
R`000 of total
Fresh fruit and nuts seafreight 5 374 30%
Fresh fruit airfreight 7 333 40%
International agri-commodities 5 516 30%
Operational review
The year under review has been one of particularly strong performance by all
divisions of Intertrading, achieved in a difficult and highly competitive
international market. The international market showed only a slight
improvement in volumes over the prior year and South African subtropical
fruit quality was still affected by the severe rains of two years ago. It is
fair to say, therefore, that a large part of Intertrading`s strong
performance arose out of operational improvements.
Agrilink, the airfreight division, reported excellent profits, and is the
leading fresh produce airfreight operation in South Africa.
Inter Africa, the agricultural commodities division, has established itself
as a major force in the supply of grains to sub-Saharan Africa. It recorded
a 205% increase in quantities delivered compared to the prior financial
year. It has been appointed an Official Supplier to the United Nations World
Food Program and a supplier to the Malawi National Food Reserve Agency.
The seafreight division had a reasonable year, boosted particularly by some
very good macadamia nut export contracts
At the operational level, Intertrading`s first- class supply chain systems
and financial management ensure that the group is highly competitive in the
service it is able to offer to South African farmers and international
buyers. The increased geographical and product diversity of Intertrading`s
operations means that income is more consistent over a twelve-month period
and is not so subject to the risks of a localised poor season.
Board appointments
In February this year Dr Philip Deetlefs announced his retirement from the
chair and the board of Intertrading at the conclusion of his four-year term.
His vast experience and strong contacts in the industry did much to help
Intertrading in its early years as a listed public company. Mr Theo Swart
accepted an invitation to become the new non-executive Chairman of
Intertrading in place of Dr Deetlefs. Mr Swart was, inter alia, formerly
Chairman and Managing Director of McCarthy Motor Holdings. He has already in
his short tenure brought a new dynamism to Intertrading`s board.
Capital distribution
The board has resolved to make a capital distribution of 4 cents per share
in lieu of a dividend for the year ended 28 February 2002. Such distribution
is subject to JSE and shareholder approval. The last day to trade in
Intertrading shares for the purpose of entitlement to the capital
distribution will be the close of business on Friday, 12 July 2002 and
shares will trade ex-distribution with effect from Monday, 15 July 2002. The
record date for the capital distribution will be the close of business on
Friday, 19 July 2002. The capital distribution will be paid to shareholders
on Monday, 22 July 2002. Share certificates may not be dematerialised or
rematerialised between Monday, 8 July and Friday, 19 July 2002, both days
inclusive.
A circular relating to the distribution and certain other proposed
amendments to Intertrading`s Articles of Association will be posted to
shareholders on or about 7 June 2002, and a general meeting will be held on
or about Wednesday, 3 July 2002.
The above dates are subject to amendment. Any amendment will be published in
the press and on the Stock Exchange News Service.
G F M van Rooyen
(Managing director)
T J Swart
(Chairman)
Johannesburg
4 June 2002
Registered office
Kuehne and Nagel House
37 Bath Avenue
Rosebank 2196
(PO Box 1720, Parklands 2121)
Transfer secretaries
Computershare Services
Edura House, 41 Fox Street
Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
Directors
Mr. T J Swart (Chairman), G F M van Rooyen (CEO), Dr A Hahn, A J de Kovel*,
B R Jlicher
*Netherlands
