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(Registration number 1946/022234/06)
(Share code: MLB ISIN code: ZAE000004487)
Revenue up 35% Headline earnings per share up 54%
Group income statement
for the year ended 31 March
%
Rm 2002 2001 change
Revenue 4 536 3 976
Continuing 4 055 3 003 35
Discontinued 481 973
Operating 340 218
profit
Continuing 321 225 43
Discontinued 19 (7)
Exceptional (394) (14)
items
Net interest (74) (62)
paid
Income from 21 22
associates
(Loss)/Profit (107) 164
before taxation
Taxation 75 52
Attributable (182) 112
net
(loss)/profit
Headline 180 121 49
earnings
Number of
shares in issue
(m)
- period end 530,2 530,2
- weighted 477,2 493,3
average
(voting)
Earnings per
share (cents)
- Headline 37,7 24,5 54
(basic)
- Headline 37,2 24,5 52
(diluted)
- Attributable (38,1) 22,7
Dividend per
ordinary
share (cents) 13,0 8,0
Headline
earnings
reconciliation
(Rm)
Attributable (182) 112
net
(loss)/profit
Exceptional 394 14
items
Profit on
disposal of
property,
plant and (35) (8)
equipment
Impairment of - 2
assets
Defined 2 -
benefit fund
surplus
Goodwill 9 6
amortisation
Taxation (8) (5)
effect
Headline 180 121
earnings
Additional
information
(Rm)
Depreciation 224 214
Goodwill 9 6
amortisation
Ratios
Operating
profit to sales
margin 7,9 7,5
(continuing)
(%)
Effective tax
rate (excluding
exceptional 30,3 32,7
items) (%)
Dividend cover
(headline
earnings) 2,9 3,1
(times)
Group statement of changes in equity
for the year ended 31 March
Rm 2002 2001
Net gain recognised 183 51
directly in equity
Transfer (to)/from (24) 9
retained earnings
Subsidiaries (7) -
disposed
Increase in foreign
currency
translation reserve 214 42
Attributable net (182) 112
(loss)/profit for
the year
Aggregate increase 1 163
in net worth
Capital transactions
with and
distributions to (19) (225)
owners
Treasury shares - (160)
acquired
Ordinary dividends (43) (56)
Transfer from/(to) 24 (9)
non-distributable
reserves
Change in equity for (18) (62)
the year
Equity at the 1 413 1 475
beginning of the
year
Equity at the end of 1 395 1 413
the year
Group balance sheet
as at 31 March
Rm 2002 2001
Property, plant and 1 413 1 518
equipment
Goodwill 204 150
Investments - 71 68
unlisted
Investments in 55 98
associates
Deferred taxation - 8
asset
Current assets 1 403 1 363
Cash equivalents 571 344
Total assets 3 717 3 549
Ordinary 1 395 1 413
shareholders` equity
Deferred taxation 139 116
Total interest 1 244 1 163
bearing debt
Trade and other 939 857
payables
Total equity and 3 717 3 549
liabilities
Additional
information
Net borrowings (Rm) 673 819
Net borrowings to 48,2 58,0
equity (%)
Net asset value per 292 296
share (cents)
Directors` valuation
of unlisted
investments (Rm) 71 68
Directors` valuation 68 98
of associates (Rm)
Operating lease 326 388
commitments (Rm)
Contingent 97 22
liabilities (Rm)
Capital expenditure
(Rm)
- contracted but not 79 26
provided for
- authorised but not 1 13
contracted for
Group cash flow statement
for the year ended 31 March
Rm 2002 2001
Cash generated by 577 429
operations
Working capital (39) (41)
requirements
Financing costs and (118) (135)
taxation paid
Dividends paid (43) (56)
Net cash inflow from 377 197
operating activities
Net cash outflow (3) (923)
from investing
activities
Capital expenditure (246) (177)
Acquisition of - (755)
business
Disposal and closure 200 -
of businesses
Net other investment 43 9
activities
Net cash (249) 534
(outflow)/inflow
from financing
activities
Net financing (249) 694
activities
Share purchase - (160)
Foreign exchange 102 21
effect on cash
equivalents
Net 227 (171)
increase/(decrease)
in cash equivalents
Segmental analysis
for the year ended 31 March
South South Offshore Offshore
Africa Africa
2002 2001 2002 2001
Revenue* 1 367 1 254 2 688 1 749
(Rm)
Folding 631 591 2 688 1 749
cartons and
cores
Flexible 736 663 - -
plastics
EBITDA* 147 132 371 247
(Rm)
Folding 41 35 371 247
cartons and
cores
Flexible 106 97 - -
plastics
Operating 97 82 224 143
profit*
(Rm)
Folding 22 16 224 143
cartons and
cores
Flexible 75 66 - -
plastics
EBITDA 10,8 10,5 13,8 14,1
margin* (%)
Folding 6,5 5,9 13,8 14,1
cartons and
cores
Flexible 14,4 14,6 - -
plastics
Operating 7,1 6,6 8,3 8,2
profit
margin* (%)
Folding 3,5 2,7 8,3 8,2
cartons and
cores
Flexible 10,2 10,0 - -
plastics
Headline 69 29 111 92
earnings
(Rm)
Total 898 1 270 2 248 1 935
assets
excluding
cash (Rm)
* in respect of continuing businesses
Commentary
Business and strategic review
The twelve months to March 2002 have marked significant change and solid
financial progress for the group.
The improvements reported at the half year continued through the second six
months and headline earnings increased by 49% on the previous year. This
pleasing result was achieved despite the ongoing problems of global industry
overcapacity, little volume growth and pricing pressures, and was largely
attributable to the benefits flowing from years of restructuring and
rationalisation. Headline earnings per share grew 54% to 37,7 cents with all
continuing businesses contributing positively.
Strategic reviews resulted in the planned sale of the Kohler Cores division
and the disposal of the Rigid plastics division. The sale of the Kohler
Cores division to Mondi Limited has recently been prohibited by the
Competition Tribunal. A decision has not been taken as to whether to appeal
this ruling. Shareholders are also aware of the Nampak Limited merger
discussions and the recent firm intention announcement by Nampak Limited to
acquire all of the share capital of Malbak Limited. The Competition
Commission has referred this merger to the Competition Tribunal,
recommending its approval subject to a minor condition. This Tribunal ruling
is expected by the end of June 2002.
Financial results
The results achieved by the group and its various operations are most
pleasing.
Revenue from continuing operations increased by 35% over the previous year
whilst continuing operating profit grew 43% to R321 million. Revenue growth
and an improvement in profitability were recorded in all segments of the
business. The group benefited from a full twelve month contribution from the
Imca business acquired on 21 June 2000 and saw translated offshore results
rise substantially following the rapid decline in the value of the rand. The
average exchange rate used in the conversion of the foreign revenue and
earnings was R13,8 to GBP1,00 (R10,8 to GBP1,00: 2001).
Net interest paid increased to R74 million, but interest cover has improved
substantially to 4,6 times. Eliminating the exchange rate deterioration and
taking into account the timing of the Imca acquisition, the offshore
interest charge declined on an annualised basis, indicating the group`s
ability to generate a strong cash flow and reduce debt.
The disposal of the Rigid plastics division resulted in a loss of R375
million which is included in exceptional items.
Income from the group`s associate, Printpak Limited, declined marginally,
reflecting the difficult operating conditions, mentioned above, in a tough
market.
Headline earnings increased by 49%, in line with expectations and the 51%
achieved at the half year. Headline earnings per share, showed a most
satisfactory 54% growth.
The impact of the declining rand on the balance sheet has been significant.
The year-end exchange rate was R16,4 to GBP1,00 (R11,4 to GBP1,00: 2001).
The net effect of this, amounting to R214 million, has been credited
directly to equity through non-distributable reserves and offshore fixed
assets, goodwill, net current assets and debt have been revalued
accordingly. The balance sheet is strong, net gearing improved to 48% and
net debt, notwithstanding the rand depreciation, reduced to R673 million.
Following good cash management, offshore net debt declined from GBP67
million to GBP51 million.
Segmental comment
Southern Africa - Continuing revenue for the year grew by 9%. Ebitda showed
an 11% increase and operating profit a satisfactory 18% improvement. Volume
growth was achieved and the benefits of management action have been realised
in the improved results achieved by all businesses.
Offshore - United Kingdom and Europe - Continuing revenue increased by 54%,
ebitda grew by 50% and operating profit by 57%. The revenue and profit
stream were assisted by the inclusion of the Imca businesses for a full
twelve-month period, volume growth and the declining rand exchange rate.
Folding Cartons and Cores - The offshore operations achieved volume gain and
profit improvement in a tough market. M.Y. Healthcare gained market share in
the United Kingdom, whilst the integrated Italian operations have become the
premier supplier in that country. The Insight and Imca cartons performed to
expectations.
In South Africa, management actions in both the cartons and cores operations
have favourably affected results. Operating margins improved on modest
turnover growth. Further gains are expected as the benefits of the
management reorganisation and restructure are realised.
Flexible Plastics - All businesses in the division have achieved improved
performances. Revenue showed strong growth, particularly in the second half.
The Tubes and Tubs operation benefited from increased volume and the
Pinetown gravure operation and Cape Town liquids businesses produced
pleasing results.
Accounting policies
The requirements of the South African Statements of Generally Accepted
Accounting Practice are complied with and the accounting policies applied
are consistent with those of the prior year.
Directorate
With effect from 12 March 2002 Messrs G D de Jager and G J de Jager resigned
as directors of Malbak Limited. Following the resignation of Mr G D de
Jager, Mr J A Monks was appointed Chief Executive of Malbak Limited.
Prospects
The group enters the new financial year with sharper focus and in a stronger
financial position than a year ago. Whilst the trading environment is not
expected to be buoyant, the businesses are well prepared to meet the
challenges and management and the board are confident that the improved
level of financial performance can be sustained.
Dividend declaration
Notice is hereby given that a final dividend No. 103 of 9 cents per share
has been declared in respect of the financial year ended 31 March 2002,
payable to shareholders recorded as such in the books of the company at the
close of business on the record date, Friday, 5 July 2002.
The important dates pertaining to this dividend are:
Last date to trade (cum dividend) Friday, 28 June 2002
First date of trading (ex dividend) Monday, 1 July 2002
Record date Friday, 5 July 2002
Payment date Monday, 8 July 2002
Share certificates may not be dematerialised or rematerialised between
Monday, 24 June 2002 and Friday, 5 July 2002, both dates inclusive.
By order of the board
M H Visser J A Monks
Chairman Chief Executive 6 June 2002
Registered office
4 Pybus Road
Wierda Valley
Sandton, 2196
Transfer secretaries
Computershare Investor Services Limited
11 Diagonal Street
Johannesburg, 2001
Websites
www.malbak.co.za
www.kohler.co.za
www.mypackaging.com
Date: 06/06/2002 07:00:03 AM Produced by the SENS Department
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