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DELTA ELECTRICAL INDUSTRIES LIMITED - UNAUDITED GROUP RESULTS FOR THE SIX MONTHS
ENDED 30 JUNE 2002
DELTA ELECTRICAL INDUSTRIES LIMITED
Reg No. 1919/006020/06)
- REVENUE UP 47%
- OPERATING PROFIT BEFORE FOREIGN EXCHANGE GAINS AND LOSSES UP 51%
- HEADLINE EARNINGS PER SHARE UP 23%
Unaudited group results for the six months ended 30 June 2002
GROUP INCOME STATEMENT
Unaudited Audited
Six Months Year to
to June December
2002 2001 Increase 2001
R`000 R`000 % R`000
Revenue 738 950 502 586 47 1 123 465
Earnings before
interest,
taxation,
depreciation and
amortisation 179 088 120 847 48 310 381
Foreign exchange
(losses)/gains (21 423) 8 501 52 383
Depreciation (24 291) (18 076) (40 018)
Amortisation (294) (294) (589)
Operating profit 133 080 110 978 20 322 157
Interest received 22 700 17 040 25 382
Interest paid (13 910) (14 090) (19 651)
Profit before 141 870 113 928 25 327 888
taxation
Taxation 48 776 38 166 28 102 074
Profit after 93 094 75 762 23 225 814
taxation
Outside
shareholders`
interest 2 443 1 879 5 449
Attributable net 90 651 73 883 23 220 365
profit
Shares in issue and
on
which earnings per
share
are based (000`s) 49 166 49 166 49 166
Earnings per share -
basic
and diluted (cents) 184,4 150,3 23 448,2
Headline earnings
per
share - basic and
diluted
(cents) 184,4 150,3 23 448,0
Dividend per share 53,0 43,0 23 169,0
(cents)
RECONCILIATION OF
HEADLINE EARNINGS
Attributable net
income
for the period 90 651 73 883 220 365
Profit on the
disposal of
property, plant and
equipment (5) - (85)
Headline earnings 90 646 73 883 220 280
STATEMENT OF CHANGES IN EQUITY
Share Non-
Capital and distributable Distributable
Premium Reserves Reserves Total
R`000 R`000 R`000 R`000
Balance at
28 December 117 445 30 296 369 723 517 464
2000
Net profit - - 220 365 220 365
for the year
Dividends
declared
and paid - - (66 373) (66 373)
Foreign
currency
translation
reserve
movement - 28 876 - 28 876
Balance at
27 December 117 445 59 172 523 715 700 332
2001
Net profit
for the
six months - - 90 651 90 651
Dividends
declared
and paid - - (61 949) (61 949)
Foreign
currency
translation
reserve
movement - 53 202 - 53 202
Balance at
30 June 2002 117 445 112 374 552 417 782 236
SEGMENTAL ANALYSIS
Unaudited Audited
Six Months Year to
to June December
2002 2001 Increase 2001
R`000 R`000 % R`000
Revenue
Electrolytic
Manganese
Dioxide 371 672 206 674 80 508 352
Repairs and Services 329 424 270 857 22 548 093
Replacement Parts 83 753 59 556 41 125 276
Inter group sales (45 899) (34 501) (58 256)
738 950 502 586 47 1 123 465
Operating Profit
Electrolytic
Manganese
Dioxide 77 620 71 782 8 236 732
Repairs and Services 41 020 31 276 31 67 113
Replacement Parts 14 440 7 920 82 18 312
133 080 110 978 20 322 157
Depreciation and
Amortisation
Electrolytic
Manganese
Dioxide 18 597 13 176 41 29 530
Repairs and Services 4 590 3 983 15 8 552
Replacement Parts 1 398 1 211 15 2 525
24 585 18 370 34 40 607
Capital Expenditure
Electrolytic
Manganese
Dioxide 39 830 56 057 118 946
Repairs and Services 4 676 7 078 14 313
Replacement Parts 2 144 1 321 3 404
46 650 64 456 136 663
Segmental Assets
Electrolytic
Manganese
Dioxide 848 087 568 725 745 511
Repairs and Services 239 576 215 368 185 693
Replacement Parts 81 954 60 193 63 265
Other 16 936 23 549 34 705
1 186 553 867 835 1 029 174
Cash and cash
equivalents 188 459 177 341 166 971
Deferred taxation 22 418 - 12 366
assets
Total assets 1 397 430 1 045 176 1 208 511
Segmental
Liabilities
Electrolytic
Manganese
Dioxide 109 683 64 485 104 518
Repairs and Services 118 404 113 353 88 791
Replacement Parts 24 623 18 897 23 464
Other 6 492 7 932 9 375
259 202 204 667 226 148
Taxation 118 929 84 047 113 681
Overdrafts and short-
term loans 215 018 187 778 147 222
Current liabilities 593 149 476 492 487 051
GROUP BALANCE SHEET
Unaudited Audited
Six Months Year to
to June December
2002 2001 2001
R`000 R`000 R`000
ASSETS
Property, plant and 453 163 337 731 441 681
equipment
Trademarks 2 363 2 952 2 657
Deferred taxation asset 22 418 - 12 366
Loans to share incentive 27 992 35 332 29 961
schemes
Current assets 891 494 669 161 721 846
Total assets 1 397 430 1 045 176 1 208 511
EQUITY AND LIABILITIES
Ordinary shareholders` 782 236 537 320 700 332
equity
Outside shareholders` 22 045 17 447 21 128
equity
Total capital and reserves 804 281 554 767 721 460
Current liabilities 593 149 476 492 487 051
Deferred taxation liability - 13 917 -
Total equity and 1 397 430 1 045 176 1 208 511
liabilities
Net asset value per share 1 591 1 093 1 424
(cents)
Net gearing (%) 3 2 nil
Capital commitments (R`000) 130 390 212 866 159 824
Authorised but not 93 206 160 107 118 738
contracted
Contracted 37 184 52 759 41 086
Operating lease commitments
(R`000) 19 375 20 038 21 867
Minority contingent
liabilities
(R`000) 23 205 13 666 20 103
GROUP CASH FLOW STATEMENT
Unaudited Audited
Six Months Year to
to June December
2002 2001 2001
R`000 R`000 R`000
Cash generated from operations 245 255 138 633 297 799
(Increase)/Decrease in working
capital (138 492) (25 132) 3 383
Taxation paid (53 274) (46 164) (110 437)
Cash available from operating
activities 53 489 67 337 190 745
Dividends paid (64 854) (47 494) (69 046)
Cash (outflow)/inflow from
operating activities (11 365) 19 843 121 699
Replacement of property,
plant and equipment (15 535) (17 965) (39 304)
Expansion of property,
plant and equipment (31 115) (46 491) (97 359)
Disposals of property,
plant and equipment 296 228 993
Net cash outflow from
investing activities (46 354) (64 228) (135 670)
Repayment by/(Loans to) share
incentive schemes 1 969 (2 231) 3 140
Net cash inflow/(outflow) from
financing activities 1 969 (2 231) 3 140
Movement in cash and cash
equivalents (55 750) (46 616) (10 831)
Translation difference on cash
and cash equivalents 9 442 (2 990) (8 589)
Cash and cash equivalents at
beginning of period 19 749 39 169 39 169
Cash and cash equivalents at
end of period (26 559) (10 437) 19 749
ACCOUNTING POLICIES
Generally Accepted Accounting Statements
The accounting policies used to prepare the interim financial statements are
consistent with those used in the preparation of the 2001 annual financial
statements. These statements have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice.
COMMENT ON RESULTS
Financial
Headline earnings per share increased by 23% to 184,4 cents (June 2001: 150,3
cents) despite incurring foreign exchange losses during the six month period of
R21,4 million compared to foreign exchange gains of R8,5 million in the first
six months of the 2001 financial year.
Revenue increased by 47% as a result of strong sales growth in all operating
companies and the impact of a weaker rand in the first six months of 2002
compared to the first six months of 2001.
Operating profit was adversely affected by the strengthening of the rand against
the US dollar in the first half of the current year resulting in foreign
exchange losses of R21,4 million. The operating margin before foreign exchange
gains and losses improved by 0,4 percentage points to 20.9%.
Interest capitalised on the EMD plant expansion for the six months was R7,4
million (June 2001: R2,4 million).
The rand weakness was the major factor influencing the substantial increase in
working capital and cash utilisation.
Operations
EMD
World demand for EMD improved as a result of the major battery manufacturers
restocking and improved global demand for batteries. This, coupled with
increased market share and the depreciation of the rand against the US dollar
resulted in revenue increasing by 80% during the period under review. Although
operating profit increased by 57% after adjusting for foreign exchange gains and
losses, operating margins were adversely affected by these gains and losses,
increased operating costs and the cessation of the pension fund holiday.
The South African plant expansion is progressing within budget parameters. The
increased capacity will be available during 2003 and commissioning will be
dependent on market conditions.
Repairs and Services
Repairs and Services had a good six months increasing revenue by 22% and
operating profit by 31%.
Electrical Repair Engineering benefited from improved activity in the mining
sector which, together with a large drag-line refurbishment project, resulted in
strong revenue growth and improved operating efficiencies and margins.
Increased volumes as well as the increase in the copper price resulted in good
growth in both revenue and operating profit for Transwire during the period.
Wire Electric benefited from price increases due to the weakening of the rand
which increased revenue and operating profit in most of the company`s product
ranges.
Replacement Parts
Replacement Parts achieved excellent growth in revenue and operating profit due
to further market gains made in the mining sector and the decline in the rand.
Prospects
Global economic conditions are uncertain. Generally trading conditions are
expected to continue as in the first half of the year. Full year comparative
results will be impacted by the significant exchange gains in the second half of
last year.
Dividend No. 61
Notice is hereby given that an interim dividend number 61 of 53,0 cents per
share has been declared by the directors in respect of the six months ended 30
June 2002. The last date to trade in order to receive the dividend will be 6
September 2002 and Delta Electrical Industries Limited shares will trade ex-
dividend from start of trade on 9 September 2002. The record date will be 13
September 2002 and the date of payment of the dividend will be 16 September
2002. The dividend is declared in the currency of the Republic of South Africa.
Share certificates may not be dematerialised or rematerialised between 9
September 2002 and 13 September 2002, both days inclusive.
PG Joubert EW van Zyl BR Wright
(Chairman) (Joint Managing) (Joint Managing)
23 August 2002
Registered Office Transfer Secretaries
11th Floor, Office Tower Computershare Investor Services Limited
Sandton City 11 Diagonal Street
Rivonia Road Johannesburg
Sandown 2146 2001
website: www.dei.co.za
Directors:
PG Joubert (Chairman), EW van Zyl (Joint Managing), BR Wright (Joint Managing),
PL Campbell, DJ Gleeson, BG Hitchcock, MPW Robson*, JP Scott-Maxwell*, RB Spoon.
*British
Date: 22/08/2002 04:05:00 PM Produced by the JSE SENS Department
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