| Wed 5 Jun 2002, 0:00 | | METRO CASH AND CARRY LIMITED: AUDITED CONSOLIDATED |
|
YEAR ENDED 30 APRIL 2002
METRO CASH AND CARRY LIMITED
(Incorporated in the Republic of South Africa)
Registration number 1946/021315/06
Share code: MTC ISIN: ZAE000012688
^ Turnover above R43 billion
^ Operating income before depreciation and interest over R1.1 billion
^ Cash generated by operations exceeds R1 billion
^ Income before exceptional items and tax increases by 76.3%
AUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE YEAR ENDED 30 APRIL 2002
INCOME STATEMENT
Pro forma
Year ended Year ended Year ended
30 April 30 April 30 April
2002 2001 2001
R`000 R`000 R`000
Income 43 089 541 34 619 626 35 656 103
- continuing operations 43 089 541 32 923 650 33 960 127
- discontinued operations and
store closures - 1 695 976 1 695 976
Cost of sales (41 376 427) (33 488 817) (34 441
785)
Administration, human resource and
information systems costs (597 547) (338 861) (366 160)
Operating income before depreciation
and interest paid 1 115 567 791 948 848 158
Depreciation of fixed and
intangible assets (225 842) (184 470) (189 167)
Operating income 889 725 607 478 658 991
Interest paid (194 906) (213 340) (213 340)
Income before exceptional items and
taxation 694 819 394 138 445 651
Exceptional items 183 021 (444 696) (444 696)
Income before taxation 877 840 (50 558) 955
Taxation (248 978) (99 645) (115 615)
Income after taxation 628 862 (150 203) (114 660)
Income attributable to
outside shareholders (168 390) (132 380) (132 380)
Income/(loss) attributable to
ordinary shareholders 460 472 (282 583) (247 040)
Determination of headline earnings
Income/loss) attributable to
ordinary shareholders 460 472 (282 583) (247 040)
Investment in Israeli operations
written off - 66 936 66 936
Provision against recoverability of
loans to Employee Share
Incentive Trusts - 235 778 235 778
Carrying value of Zimbabwe operations
written off 19 407 - -
Profit on sale of investment in
Israeli operations (244 894) - -
Provision for diminution in
carrying value of Zambian operations 4 327 - -
Adjustment arising from purchase by
subsidiary of its preference share
and conversion of remainder to
ordinary shares 38 139 - -
Net loss on disposal of businesses and
stores in subsidiaries 28 668 29 115 29 115
Amortisation of goodwill 36 325 20 219 20 219
Headline earnings 342 444 69 465 105 008
Ordinary shares in issue (000`s)
- total 1 707 762 1 685 846 1 685 846
- weighted average 1 693 151 1 347 756 1 347 756
Headline earnings per share (cents) 20.23 5.15 7.79
Attributable earnings/(loss)
per share (cents) 27.20 (20.97) (18.33)
CONSOLIDATED BALANCE SHEET
Year ended Year ended
30 April 30 April
2002 2001
R`000 R`000
Assets
Non-current assets 2 231 685 1 581 429
Fixed assets 1 090 165 876 747
Intangible assets 835 722 325 959
Investments and loans 161 560 159 651
Future income tax benefit in
foreign subsidiary 144 238 219 072
Current assets 7 612 781 6 272 484
Inventories 2 919 095 2 583 925
Accounts receivable 3 885 271 3 380 997
Bank balances and cash 808 415 307 562
Total assets 9 844 466 7 853 913
Equity and liabilities
Shareholders` funds
Capital and reserves 1 301 016 1 088 930
Outside shareholders` interest 442 465 304 816
Non-current liabilities 1 647 928 1 684 003
Deferred taxation 5 054 6 787
Interest bearing 1 642 874 1 677 216
Current liabilities 6 453 057 4 776 164
Accounts payable 5 431 102 4 259 783
Provisions 411 476 255 586
Taxation 86 714 49 376
Interest bearing 523 765 211 419
Total equity and liabilities 9 844 466 7 853 913
Capital expenditure
Expended during the period 100 923 224 082
Committed or authorised 12 509 11 998
Contingent liabilities 26 870 42 263
Ordinary shares in issue (000`s) 1 707 762 1 685 846
Net asset value per share (cents) 76.2 64.6
ABRIDGED CASH FLOW STATEMENT
30 April 30 April
2002 2001
R`000 R`000
Net cash flow from operations 1 069 712 759 826
Investment income 36 488 30 199
Reduction/(increase) in working capital 28 852 (457 694)
Value added tax settlement costs - (141 982)
Finance costs (194 906) (213 340)
Taxation paid (152 586) (62 410)
Cash inflow/(outflow) from operations 787 560 (85 401)
Dividends paid - (43 306)
Net cash retained/(utilised) 787 560 (128 707)
Cash realised/(utilised) from
investing activities 93 982 (122 053)
881 542 (250 760)
Net cash (outflow)/ inflow from
financing activities (644 605) 179 739
Increase/(decrease) in cash and
cash equivalents 236 937 (71 021)
STATEMENT OF CHANGES IN ORDINARY SHAREHOLDERS` EQUITY
30 April 30 April
2002 2001
R`000 R`000
Balance at beginning of year
(as previously reported) 1 088 930 855 320
Prior year adjustment for
employee benefits (116 512) -
Restated balance at beginning of year 972 418 855 320
Issue of ordinary shares
Cash - 473 336
Non-cash - 175 791
Share issue expenses (170) (15 942)
Movements in distributable reserves
Income/(loss) attributable to
ordinary shareholders 460 472 (247 040)
Movements in non-distributable reserves
Transfer to/(from)
distributable reserves (9 443) (25 769)
Foreign currency translation reserve (122 261) (126 766)
Balance at end of year 1 301 016 1 088 930
SEGMENTAL INFORMATION
Australia
Year ended Year ended
30 April 30 April
2002 2001
R`000 R`000
Sales to customers 29 047 610 22 279 541
Interest received
Dividends received
Total revenue
Segment result - continuing operations 586 200 423 779
Income from associated company 2 070 1 457
Amortisation of goodwill arising (23 122) (21 033)
on consolidation
Loss - discontinued operations
Interest received
Interest paid
Exceptional items
Income before taxation
Total depreciation and amortisation 121 001 101 579
SEGMENTAL INFORMATION
South Africa
Year ended Year ended
30 April 30 April
2002 2001
R`000 R`000
Sales to customers 10 977 069 10 095 768
Interest received
Dividends received
Total revenue
Segment result - continuing operations 206 484 172 083
Income from associated company
Amortisation of goodwill arising
on consolidation
Loss - discontinued operations
Interest received
Interest paid
Exceptional items
Income before taxation
Total depreciation and amortisation 62 730 65 174
SEGMENTAL INFORMATION
Africa
Pro forma
Year ended Year ended Year ended
30 April 30 April 30 April
2002 2001 2001
R`000 R`000 R`000
Sales to customers 2 599 953 1 979 653 3 013 850
Interest received
Dividends received
Total revenue
Segment result - continuing operations 89 005 57 267 102 344
Income from associated company
Amortisation of goodwill arising
on consolidation
Loss - discontinued operations
Interest received
Interest paid
Exceptional items
Income before taxation
Total depreciation and amortisation 17 518 12 615 17 312
SEGMENTAL INFORMATION
Hong Kong &
Corporate
Year ended Year ended
30 April 30 April
2002 2001
R`000 R`000
Sales to customers 429 726 236 713
Interest received
Dividends received
Total revenue
Segment result - continuing operations 60 908 16 606
Income from associated company 2 070 1 457
Amortisation of goodwill arising
on consolidation (20 100) (4 880)
Loss - discontinued operations
Interest received
Interest paid
Exceptional items
Income before taxation
Total depreciation and amortisation 24 593 5 102
SEGMENTAL INFORMATION
Total
Pro forma
Year ended Year ended Year ended
30 April 30 April 30 April
2002 2001 2001
R`000 R`000 R`000
Sales to customers 43 054 358 34 591 675 35 625 872
Interest received 29 234 23 763 30 199
Dividends received 5 949 4 188 32
Total revenue 43 089 541 34 619 626 35 656 103
Segment result - continuing operations 942 597 669 735 714 812
Income from associated company 2 070 1 457 1 457
Amortisation of goodwill arising
on consolidation (43 222) (25 913) (25 913)
Loss - discontinued operations (40 954) (61 564) (61 564)
Interest received 29 234 23 763 30 199
Interest paid (194 906) (213 340) (213 340)
Exceptional items 183 021 (444 696) (444 696)
Income before taxation 877 840 (50 558) 955
Total depreciation and amortisation 225 842 184 470 189 167
COMMENTS
Trading
Group turnover from continuing operations totalled R43 billion, an
increase, like-on-like, of 30.9% over the R32.9 billion of the previous
year. Offshore operations (Metcash Australasia, Africa and Hong Kong)
contributed 74.5% of the Group`s turnover and 77.6% of income before
interest, exceptional items and taxation.
The Group has achieved yet another milestone in that operating income
before depreciation and interest paid exceeded R1 billion for the first
time. Income before exceptional items and taxation totalled R695 million, an
increase of 76% on the previous year`s R394 million.
This outstanding performance is clearly reflected in the R743 million
turnaround in attributable income. Cash generated from operating activities
exceeded R1.1 billion and headline earnings per share increased to 20.23
cents. This was achieved despite the dilution resulting from the rights
issue in February 2001.
The Group`s net cash resources increased by R237 million and long term
borrowings were reduced by A$126 million during the year. The Rand effect of
this reduction was substantially diluted by the depreciation of the currency
against the Australian Dollar since April 2001.
METCASH TRADING LIMITED, AUSTRALASIA
This 64% owned subsidiary produced outstanding results. Turnover totalled
R29 billion, an increase of 30.4% over the R22.3 billion achieved in 2001.
Like-on-like turnover growth for the period, in Australian Dollars, was a
creditable 14%, while earnings after taxation increased by 76.4%. The
strength of this performance was highlighted by the fact that cash generated
from operations totalled A$136 million (R680 million). In Rand terms, income
for the year before interest, exceptional items and taxation totalled R565
million. All trading divisions reported increased turnover and strong cash
flows, with IGA Distribution delivering a particularly good performance.
Both IGA Distribution and Australian Liquor Marketers increased earnings
whilst Campbells Cash & Carry reported a decrease in earnings owing to the
cost of a major drive into the formalised convenience sector and
confectionery route trade. These figures have been converted from Australian
Dollars to Rand on the following basis -
* income and expense items at R5 = A$1 (2001 - R4.08)
* assets and liabilities at R5.72 (2001 - R4.06).
METCASH S.A. LIMITED
The performance of this business unit in the second half of the year
improved dramatically, despite a particularly tough trading and economic
climate. Turnover for the year increased by 9% to R11 billion. This, coupled
with the strategic and rationalisation measures implemented earlier in the
year, resulted in income before exceptional items and interest of R206
million - an increase of 20% over that of the previous year.
All divisions in this business unit reflected significantly improved
levels of profitability and stronger cash flows. The recently launched UMS
Buying Group is making steady progress in membership growth.
METCASH AFRICA (PROPRIETARY) LIMITED
This company has operations in Botswana, Zimbabwe, Malawi, Zambia,
Mozambique, Kenya, Uganda and Angola and, notwithstanding the trading
difficulties experienced in these countries, once again produced outstanding
results. With the exception of Malawi and Zambia, operations in all
countries reflected impressive growth and improved performances in
applicable local currency terms.
On a like-for-like comparison, turnover, which totalled R2.6 billion,
increased by 31.3% over the previous year. Income before interest and
taxation increased by 56.8% to R90 million.
As reported at the interim stage, the Zimbabwe operation was
deconsolidated and its results are only included to the extent of dividends
received. The carrying value of this investment was written off. If the
Zimbabwe results had been included, this would have increased Group profit
before tax by some R34 million.
Zambia was one of those countries worst affected by the turmoil in
Zimbabwe, resulting in its own political and economic uncertainties. A
conservative approach has been adopted regarding this operation, resulting
in the creation of a provision for diminution in the carrying value of this
investment.
Trading in Malawi was adversely impacted by the famine experienced in
rural areas, as well as the reduction in foreign donor aid.
METCORP HONG KONG LIMITED
This business unit had an excellent year. Turnover increased by 81.5% to
R429.7 million for the year, on the back of improved product availability
and demand. Income before interest and taxation increased by 88.3%.
ACCOUNTING POLICIES
This report is prepared on the historical cost basis in accordance with
South African Statements of Generally Accepted Accounting Practice. The
Group`s accounting policies have been altered in order to comply with the
requirements of AC 116. The obligation to fund post retirement medical costs
is now fully provided for, as are leave pay and other employee benefits.
This change has been effected as a prior year adjustment. Save for the
foregoing, the accounting policies are consistent with those applied in the
last annual report.
PRO FORMA COMPARATIVES
The Zimbabwe operations have been deconsolidated and, in order to achieve
a meaningful comparison, a pro forma comparative income statement for the
year ended 30 April 2001 is presented. All comparisons made in these
comments accord with those figures.
EXCEPTIONAL ITEMS
R`000
30 April 2002
Carrying value of Zimbabwe operations written off 19 407
Profit on sale of investment in Israeli operations (244 894)
Provision for diminution in carrying value of Zambian operations 4 327
Adjustment arising from purchase by subsidiary of its preference
shares and conversion of remainder to ordinary shares 38 139
(183 021)
30 April 2001
Investment in Israeli operations written off 66 936
Provision against recoverability of loans to
Employee Share Incentive Trusts 235 778
Amount paid to South African Revenue Service in respect of
VAT settlement 141 982
444 696
BORROWING CAPACITY AND INTEREST BEARING DEBT
In terms of the relevant articles of association, the Group has unlimited
borrowing powers.
Interest bearing debt comprises -
Non-current
A$157 million (R899 million) syndicated loan for the balance of the
purchase price of the investment in Australia, bearing interest at
approximately 6.8% per annum. A$130 million (R744 million) in terms of a
formal accounts receivable securitisation programme in the Australian
subsidiary, bearing interest at approximately 5% per annum.
Current
Fluctuating bank borrowings in various operations, bearing interest at
prime overdraft rates or below.
HEADLINE EARNINGS
The calculation is based on 1 693 151 232 shares (2001 - 1 347 755 581
shares), being the weighted average number of shares in issue during the
year under review.
PROSPECTS
All operations are trading well and the Group has yet to derive the full
benefit from -
* the disposal by Franklins of stores to independent retailers in Australia;
* additional turnover volume in Australia that will result from the recently
announced Foodworks agreement;
* rationalisation and strategic initiatives implemented in the South African
operations;
* recent expansion of certain business ventures in Africa.
The solid foundation reflected in this announcement, coupled with the
above factors and other opportunities currently under investigation, should
produce a substantially improved performance in the year ahead.
CAPITALISATION ISSUE
The Board has resolved to award capitalisation shares to shareholders
recorded in the books of the company on 5 July 2002 in the ratio of 2 new
fully paid ordinary shares for every 100 held.
The number of capitalisation shares that will be issued is 34 155 241.
The salient dates are -
Last day to trade cum capitalisation issue Friday, 28 June 2002
New shares listed Monday, 1 July 2002
First date to trade ex capitalisation issue Monday, 1 July 2002
Record date for capitalisation issue Friday, 5 July 2002
Issue of new share certificates or shareholder
account credited with CSDP or broker Monday, 8 July 2002
Shareholders may not dematerialise or rematerialise their holdings of
ordinary shares between Monday, 24 June 2002, and Friday, 5 July 2002, both
dates inclusive.
On behalf of the Board
Dr F van Zyl Slabbert C S dos Santos
Chairman Chief Executive
5 June 2002
DIRECTORATE AND ADMINISTRATION
Directors:
Dr F van Zyl Slabbert (Chairman)*, C S dos Santos (Chief Executive),
J L Grainger, B J Hale, D Kashuv (Israeli), B Joseph, L M Mathabathe,
J R McAlpine*, H Mer, G H Pieterse*, A Reitzer, G B Rubenstein*,
V D Rubin, S O Shonhiwa*, R D Taurog *non-executive
Group Company Secretary:
P M Gishen (Miss)
Registered office:
First Floor, 33 Scott Street, Waverley, Johannesburg 2090
(PO Box 1970, Highlands North 2037)
Transfer secretaries:
Computershare Investor Services Limited,
11 Diagonal Street, Johannesburg 2001,
(PO Box 1053, Johannesburg 2000)
Date: 05/06/2002 01:37:00 PM Produced by the SENS Department
