| Thu 22 Aug 2002, 0:00 | | The Cementation Company (africa) Limited - Interim |
|
THE CEMENTATION COMPANY (AFRICA) LIMITED - INTERIM REPORT FOR THE SIX MONTHS
ENDED 30 JUNE 2002
The Cementation Company (Africa) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008840/06)
Share code CMT ISIN ZAE000005182
Share code CMTP ISIN ZAE000501590
("the company" or "the Group")
Turnover up 37%
EPS up 41%
Operating results up 53%
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2002
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
six months six months Year to
to June to June December
2002 2001 2001
R`000 R`000 R`000
Turnover 522 340 381 081 861 637
Mining and Construction 522 340 380 442 861 060
Property - 639 577
Cost of sales 493 160 357 396 822 494
Mining and Construction 493 160 357 396 822 494
Property - - -
Gross profit for the year 29 180 23 685 39 143
Mining and Construction 29 180 23 046 38 566
Property - 639 577
Other operating income 2 090 231 20 077
Mining and Construction 2 090 315 19 888
Property - (84) (21)
Discontinued operations - - 210
Administrative expenses (12 112) (10 784) (26 354)
Mining and Construction (11 224) (8 241) (18 789)
Property (583) (1 072) (3 635)
Discontinued operations (305) (1 471) (3 930)
Net profit from operations 19 158 13 132 32 866
Mining and Construction 20 046 15 120 39 665
Property (583) (517) (3 079)
Discontinued operations (305) (1 471) (3 720)
Net finance income/(cost) 318 29 (249)
Net profit before taxation 19 476 13 161 32 617
Taxation (6 264) (1 734) (11 009)
Net profit for period 13 212 11 427 21 608
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Pref-
erence
share
Pref- arrear Non- Accu-
Ordinary erence divi- distri- mulated
share share dends share butable profit/
capital capital and STC premium reserves (loss) Total
R`000 R`000 R`000 R`000 R`000 R`000 R`000
Balance at
30 June 2001 4 478 5 298 - 30 600 3 240 515 44 131
Net profit for the period 10 181 10 181
Arising on consolidation 1 772 (171) 1 601
Transfer to income statement (459) 459 -
Arrear dividends and STC provided (1 188)(1 188)
Balance at
31 Dec 2001 4 478 5 298 - 30 600 4 553 9 796 54 725
Net profit for the period 13 212 13 212
Preference dividends (9) (9)
Balance at
30 June 2002 4 478 5 298 - 30 600 4 553 22 999 67 928
CONSOLIDATED BALANCE SHEET
30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
ASSETS
Non-current assets 69 568 57 002 80 284
Tangible assets 63 851 57 002 74 567
Deferred taxation 5 717 - 5 717
Current assets 133 109 157 925 206 933
Inventories 29 525 35 301 11 966
Trade and other receivables 53 979 115 538 117 938
Cash and cash equivalents 49 605 7 086 77 029
Total assets 202 677 214 927 287 217
EQUITY AND LIABILITIES
Capital and reserves 67 928 44 131 54 725
Ordinary share capital and premium 11 328 11 328 11 328
Cumulative preference share
capital and premium 29 048 29 048 29 048
Non-distributable reserves 4 553 3 240 4 553
Accumulated profits (losses) 22 999 515 9 796
Non-current liabilities 254 4 210 1 738
Interest bearing borrowings - 3 904 1 124
Deferred taxation 254 306 614
Current liabilities 134 495 166 586 230 754
Trade and other payable 129 441 146 935 205 423
Short-term borrowings 3 904 4 152 5 821
Shareholders for dividends 9 5 436 6 758
Provisions 1 141 10 063 12 752
Total equity and liabilities 202 677 214 927 287 217
CONSOLIDATED CASH FLOW STATEMENT
30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Cash flows from operating activities (4 530) (20 793) 97 358
Cash flows from investing activities (16 343) (22 423) (69 520)
Cash flows from financing activities (1 124) (2 143) (4 923)
Net change in cash and cash equivalents (21 997) (45 359) 22 915
Cash and cash equivalents
at beginning of period 71 208 48 293 48 293
Cash and cash equivalents
at end of period 49 211 2 934 71 208
Number of ordinary shares
in issue - `000 8 955 8 955 8 955
Net asset value per
ordinary share - cents 434,2 168,4 286,7
Net asset value per
ordinary share (fully diluted) - cents 358,4 232,9 288,8
Attributable earnings per
ordinary share - cents 130,5 112,4 211,0
Attributable earnings per ordinary share
(fully diluted) - cents 126,7 60,3 114,0
Headline earnings per ordinary share
(before exceptional items) - cents 130,5 110,5 244,8
Headline earnings per ordinary share
(fully diluted before
exceptional items) - cents 126,7 112,4 213,2
Dividends per ordinary share
- no dividend was declared
Capital expenditure 16 343 23 074 75 685
Depreciation 25 625 9 674 44 372
Capital expenditure committed
or authorised 19 997 6 709 6 924
COMMENTS
Group results
The board is pleased to report a positive return for the first half of the
year. Turnover for the Group improved on the comparative period and was 8,7% up
on the six months to December 2001. The pre-tax profit of R 19,5 million is up
R6,3 million on the comparative period. An operating margin of 3,67% was
achieved in line with expectations. This return to profitability by the group
and the consequent utilisation of tax losses, has resulted in an increased tax
charge. This notwithstanding, an increase in attributable earnings per ordinary
share of 31% (14% fully diluted) was achieved.
The unutilised properties have now been disposed of, generally on terms, with
transfer subject to receipt of final payment.
Our major shareholder, Skanska, has converted their preference share holding
into ordinary shares at 1 July 2002 and now holds 79% of the company.
These results have been prepared in accordance with South African Statements of
Generally Accepted Accounting Practice and accounting policies are consistent
with those applied in the previous financial period.
Outlook and prospects
The Group continues to achieve success obtaining new work and the combination
of new contracts won and extensions to existing contracts, places the Group
order book at a satisfactory R1,738 billion.
Prospects for continuing organic growth are positive. The focus for the
remainder of 2002 will be on continuing to provide our clients with first class
service to meet their projects objectives.
DIVIDENDS
Preference
Notice is hereby given that the board has declared the following preference
dividend to be paid on Monday, 16 September 2002.
Dividend number 61 of 6 cents per 6% cumulative preference share, for the six
months ended 30 June 2001.
To comply with the procedures of STRATE, the last day to trade in the shares
for the purposes of the dividends is Friday, 6 September 2002. The shares will
commence trading ex dividend from Monday, 9 September 2002 and the record date
will be Friday, 13 September 2002.
Certificated shareholders may not dematerialise their shares between Monday,
9 September 2002 and Friday, 13 September 2002 inclusive.
Ordinary
The directors have agreed to pass the declaration of an ordinary dividend. In
light of the changing nature of the Group`s contracts, a review of the dividend
policy is underway by the board.
DIRECTORATE
Mr K E Clarke has resigned, effective 31 May 2002, as a non-executive director
following his appointment as Vice President Skanska. Mr G Hancock, financial
director of Cementation Skanska has been appointed as a non-executive director
with effect 1 June 2002.
For and on behalf of the board
S Keeble A A B Douglas
(Chairman) (Chief Executive Officer)
22 August 2002
Executive Directors: A A B Douglas, B J Hancock
Non-executive Directors: S Keeble, D G Fison, G Hancock
Independent non-executive Directors: T J Motlatsi, B R van Rooyen
Company Secretary: B J Hancock
Registered office:
48 Booysens Road Selby,
Johannesburg 2001
(PO Box 1128, Johannesburg, 2000)
Transfer Secretaries:
Computershare Investor Services Limited
8th Floor,
11 Diagonal Street,
Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
Date: 22/08/2002 05:45:00 PM Produced by the JSE SENS Department
