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Metair Investments Limited - Interim Report For The 6 Months Ended 30 June 2002
Metair Investments Limited
(Reg No. 1948/031013/06)
Share code: MTA
ISIN code: ZAE000004743
GROUP INCOME STATEMENTS Six months ended Year ended
30 June % 30 June 31 December
2002 Change 2001 2001
R`000 R`000 R`000
Unaudited Unaudited Audited
Audited
Sales 714 285 18,4 603 533 1 208 339
Cost of sales (537 645) (19,3) (450 706) (921 331)
Gross profit 176 640 15,6 152 827 287 008
Other operating income 5 660 (26,8) 7 730 22 054
Distribution, (107 963) (7,5) (100 434) (175 838)
administrative
and other expenses
Operating profit 74 337 23,6 60 123 133 224
Depreciation and (13 399) (9,5) (12 234) (24 258)
amortisation
Finance costs (7 467) (1 134,2) (605) (1 348)
Share of results of 3 861 23,7 3 121 4 111
associates
Profit before tax 57 332 13,7 50 405 111 729
Tax (19 108) (16,4) (16 409) (19 183)
Net profit 38 224 12,4 33 996 92 546
Dividend (26 509) (102)
Retained earnings for 11 715 33 996 92 444
the period
Earnings per share 656 12,2 585 1 588
(cents)
Headline earnings per 656 12,2 585 1 588
share (cents)
Dividend per share 455
(cents)
Weighted number of 5 826 5 812 5 826
ordinary shares in issue
(`000)
GROUP CASH FLOW STATEMENTS Six months ended Year ended
30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Unaudited Unaudited Audited
Net cash available 4 594 (23 678) 18 582
from/(utilised in)
operating activities
Net cash used in investing (44 209) (25 596) (107 244)
activities
Net cash inflow from financing 5 148 18 369 3 496
activities
Decrease in cash (34 467) (30 905) (85 166)
and cash equivalents
Net cash
At beginning of period (29 677) 55 489 55 489
At end of interim period (64 144) 24 584 (29 677)
CONSOLIDATED STATEMENT Non-
OF CHANGES IN EQUITY Share distri-
capital and Retained butable
premium earnings reserve Total
R`000 R`000 R`000 R`000
Balance at 1 January 2002 31 822 461 677 24 698 518 197
Net profit 38 224 38 224
Dividends (26 509) (26 509)
Transfer to non- (3 861) 3 861
distributable reserve
Balance at 30 June 2002 31 822 469 531 28 559 529 912
NOTES TO THE CONSOLIDATED INTERIM CONDENSED FINANCIAL STATEMENTS
Accounting policies
These consolidated condensed interim financial statements are prepared in
accordance with AC127 Interim Financial Reporting and Statements of Generally
Accepted Accounting Practice in South Africa. The accounting policies used in
the preparation of the interim financial statements are consistent with those
used in the annual financial statements for the year ended 31 December 2001.
Contingencies
The bank and other guarantees given by the Group to third parties amounted to
R48,7 million as at 30 June 2002 (R49,8 million as at 30 June 2001).
Borrowings 30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Current 69 031 1 959 31 998
Non-current 60 539 39 975 43 821
129 570 41 934 75 819
The movement in the borrowings can be analysed as follows:
Six months ended June 2002
Opening amount (75 819)
Repayments 3 602
Amounts raised (57 353)
Closing amount (129 570)
GROUP BALANCE SHEETS 30 June 30 June 31 December
2002 2001 2001
R`000 R`000 R`000
Unaudited Unaudited Audited
Assets
Non-current assets 327 310 224 628 296 272
Property, plant and equipment 257 900 157 988 228 528
Intangible assets 3 179 3 332 3 360
Investments:
- investments in 29 304 25 737 27 247
associate companies
- other investments 36 927 37 571 37 137
Current assets 514 706 441 400 477 580
Inventories 261 888 200 069 241 026
Receivables and prepayments 252 818 216 747 236 554
Cash and cash equivalents 24 584
Total assets 842 016 666 028 773 852
EQUITY AND LIABILITIES
Capital and reserves 529 912 466 197 518 197
Share capital and premium 31 822 31 822 31 822
Retained earnings and reserves 498 090 434 375 486 375
Non-current liabilities 68 137 47 122 44 132
Interest bearing borrowings 60 539 39 975 43 821
Deferred taxation 7 598 7 147 311
Current liabilities 243 967 152 709 211 523
Borrowings 4 887 1 959 2 321
Bank overdraft 64 144 29 677
Provisions for liabilities 15 101 12 036 23 684
and charges
Other current liabilities 159 835 138 714 155 841
Total liabilities 312 104 199 831 255 655
Total equity and liabilities 842 016 666 028 773 852
Net asset value per share (cents) 9 096 8 021 8 895
Capital expenditure 44 674 25 309 34 022
Capital commitments
- contracted 37 179 43 129 23 014
- authorised but not contracted 17 904 3 379 11 008
COMMENTS
The events of the last quarter of 2001 had a major impact on conditions in the
South African motor industry in the first six months of 2002. The dramatic
collapse of the Rand led to substantial increases in new vehicle prices and this
together with an increase in interest rates curtailed domestic sales volumes.
However, some pre-emptive buying in anticipation of price increases, limited the
sales decline to 5% compared to the first six months of 2001.
The decline in the Rand exchange rate had a very favourable effect on component
exports both in terms of value and volume. In addition, vehicle export
programmes gained momentum and vehicle exports were 38% higher than the
comparable period in 2001.
The replacement market for components showed little growth but the mining
industry received the dual boost from exchange rates and increased commodity
prices.
OPERATING RESULTS
The turnover of the group increased by 18,4% and headline earnings increased to
656 cents per share compared to 585 cents per share in the first six months of
2001.
The deterioration in the exchange rate improved the competitiveness of
components destined for both domestic and export markets and margins were
maintained. The volume growth in exports was the main contributor to improved
profitability.
The balance sheet reflects a substantial increase in fixed assets as the
investments described in the last Annual Report were progressively commissioned.
Inventory levels were impacted by the exchange rate movements and debtors
reflected the higher percentage of export sales. As anticipated, borrowings
increased and resulted in an increase in finance costs. However, the balance
sheet remains strong with shareholders` equity representing 62,9% (June 2001 -
70,0%) of total assets.
FORECAST
The economy remains under pressure with no relief in interest rates expected
until inflationary pressures decline. Domestic vehicle sales volumes
expectations for the second six months are not optimistic but the launch of the
new Toyota Corolla in the last quarter will result in utilisation of the new
facilities commissioned in the first six months. The weak Rand will continue to
stimulate export volumes.
Earnings for the second six months of 2002 are expected to exceed the first six
months but, as previously reported, full year earnings will be less than the
previous year with growth only anticipated in 2003.
EXPIRY OF DISPOSSESSED MEMBERS FUND
Metair went through the dematerialisation process and onto STRATE on 27 August
2001. Please note that the insurance cover provided by Lloyds of London to the
Dispossessed Members Fund expires on 29 September 2002. Shareholders are
therefore advised to dematerialise their shares and surrender all share
certificates to a CSDP bank or broker prior to this date to prevent possible
risk of invalid or tainted script.
Signed on behalf of the board
E Le R BRADLEY - Chairman
A D PLUMMER - Managing Director
JOHANNESBURG, 26 August 2002
TRANSFER SECRETARIEs
Computershare Investor Services Limited
70 Marshall Street
JOHANNESBURG
2107
DIRECTORS: E le R Bradley (Chairman); A D Plummer (Managing)*;
L Soanes*; G J Strydom; C I J van der Merwe (Finance)
British
COMPANY SECRETARY: S M Vermaak
Date: 29/08/2002 05:20:00 PM Produced by the JSE SENS Department
