| Mon 2 Sep 2002, 0:00 | | Wilson Bayly Holmes - Ovcon Limited - Audited Resu |
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WILSON BAYLY HOLMES - OVCON LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE
2002
WILSON BAYLY HOLMES - OVCON LIMITED
Civil Engineering and Building Contractors
(Registration No 1982/011014/06))
ISINNo: ZAE000009932 Share code: WBO
Preliminary Profit Announcement
Audited results for the year ended 30 June 2002
Another year of solid growth
Headline earnings per share up 27%
Turnover up 34%
Shareholders to receive 23% more
COMMENTS
Financial review We are pleased to announce that the group has achieved another
year of solid growth. Headline earnings for the year at R79957 million reflect
an increase of 27% over the previous year. Repayment of share premium to
shareholders has increased from the equivalent of 26 cents per share in 2001 to
32 cents this year.
The increase in the amortisation of goodwill is due to the fact that the write-
off in 2001 related to only a part of that year. Goodwill amortisation should
remain at the 2002 level for the next two years and will then reduce to a
substantially lower figure.
Group cash and bank balances reflect an increase of R83million over the year,
despite an increase in capital expenditure of R37 million.
Growth achieved across the board Growth was recorded across the board with
certain divisions achieving exceptional results. The Roads and Earthworks
division in particular has managed to exploit its larger capital base which
arose from the acquisition of Stocks Civil Engineering last year and has, once
again, achieved record profits.
Civil engineering concrete work continued to fill the gap created by the decline
in building work but the group nevertheless managed to fill its order book with
a number of significant building contracts in most of the major centres of South
Africa as well as in Botswana and Malawi.
Our Australian associate, Probuild Constructions, also achieved higher profits
in a strong but competitive market.
Capital expenditure set to rise Because the Roads and Earthworks division is
making a higher contribution to turnover and abetted by the steep increases in
the prices of plant and equipment, capital expenditure is set to rise and we are
budgeting to spend R100 million in 2003 compared to R83 million this year.
Prospects The building industry is expected to remain quiet in the forthcoming
year whilst moderate growth in mining infrastructure and other concrete civil
projects is expected to continue. The demand for roads, earthworks and
infrastructural projects in South Africa and sub-Saharan Africa is expected to
remain strong.
The group has a good quality order book of over R2billion and we should achieve
higher headline earnings in the forthcoming year.
Accounting policy and consistency The accounting policies and methods of
computation as disclosed in the group`s financial statements for this year are
consistent with those applied in 2001 and comply with the South African
Statements of Generally Accepted Accounting Practice.
The group`s financial statements have been audited by BDO Spencer Steward
(Johannesburg) Inc. and they have issued an unqualified report relating
thereto.The auditors concur that the financial information set out herein is in
accordance with the audited financial statements of the group for the year ended
30 June 2002. The auditor`s report is available for inspection at the company`s
registered office.
Distribution of share premium Notice is hereby given that the directors of
WBHO have proposed a cash distribution, by way of a reduction of share premium,
of 24cents per ordinary share in lieu of a final dividend ("the distribution"),
subject to the approval of shareholders at a general meeting to be held on
Friday, 20 September 2002.
The last day to trade cum the distribution is Friday, 18October 2002. Shares
will commence trading ex the distribution from Monday, 21 October 2002. The
distribution is payable to all shareholders of WBHO recorded in the books of the
company at the close of business on Friday, 25 October 2002. Payment will be
made on Monday, 28 October 2002. Share certificates may not be dematerialised or
rematerialised between Monday, 21 October 2002 and Friday, 25 October 2002, both
days inclusive.A circular giving formal notice of the meeting was posted to
shareholders on 30 August 2002.
On behalf of the board
M.S. WYLIE A.J. MACKENZIE
Chairman Director
2 SEPTEMBER 2002
2002 % 2001
Group income statement R`000 increase R`000
Gross revenue 2 284 063 34,3 1 701 182
Operating income before
depreciation and amortisation 120 489 24,3 96 951
Less: Depreciation 41 136 34,1 30 680
Goodwill amortisation 26 680 136,7 11 271
Operating income 52 673 (4,2) 55 000
Investment income 17 232 2,2 16 858
Income before interest 69 905 (2,7) 71 858
Interest paid 4 582 118,0 2 102
Income before taxation 65 323 (6,4) 69 756
Taxation 25 483 3,5 24 624
Income after taxation 39 840 (11,7) 45 132
Income from associates 13 437 111,6 6 351
Attributable income 53 277 3,5 51 483
Add back goodwill amortisation 26 680 136,7 11 271
Headline earnings 79 957 27,4 62 754
Shares in issue (`000s) 55 491 55 491
Earnings per share (cents) 96 3,5 93
Headline earnings per share (cents) 144 27,4 113
Group balance sheet 2002 2001
R`000 R`000
ASSETS
Non-current assets 355 772 333 035
Property, plant and equipment 217 338 176 125
Investments in associates 98 048 103 787
Investments and loans 8 698 1 422
Goodwill 31 688 51 701
Current assets 822 766 679 536
Inventories 27 032 18 428
Contracts in progress 428 386 397 664
Accounts receivable 75 859 54 597
Bank balances 291 489 208 847
Total assets 1 178 538 1 012 571
EQUITY AND LIABILITIES
Ordinary share capital and reserves 335 101 255 203
Non-current liabilities 60 095 71 629
Interest bearing debt 12 941 8 804
Deferred tax 47 154 62 825
Current liabilities 783 342 685 739
Short-term loans 6 773 8 626
Accounts payable and provisions 733 490 655 246
Taxation 43 079 21 867
Total equity and liabilities 1 178 538 1 012 571
Net tangible asset value per share (cents) 547 367
Cash flow statement 2002 2001
R`000 R`000
Cash generated from operations 190 006 33 326
Investment income 17 232 16 858
Finance costs (4 582) (2 102)
Taxation (19 942) (642)
Share premium repaid (17 757) (14 426)
Net cash flow from operating activities 164 957 33 014
Cash flow from investing activities
Change in investments and loans (7 277) 4 135
Investments in associates (net) 5 739 (65 109)
Purchase of fixed assets (net) (83 061) (45 999)
Cash flow after investing activities 80 358 (73 959)
Cash flow from financing activities
Change in borrowings 2 284 (3 423)
Change in cash and cash equivalents 82 642 (77 382)
Cash and cash equivalents at start of year 208 847 215 076
Cash acquired on acquisition of
subsidiaries - 71 153
Cash and cash equivalents at end of year 291 489 208 847
Statement of changes in equity 2002 2001
R`000 R`000
Capital and reserves at start of year 255 203 207 464
Retained income for year 53 277 51 483
Changes in foreign currency
translation reserve 44 378 10 684
Repayment of share premium (17 757) (14 428)
Capital and reserves at end of year 335 101 255 203
Internet address: http://www.wbho.com
E-mail enquiries: wbhoho@wbho.co.za
Date: 02/09/2002 05:30:00 PM Produced by the JSE SENS Department
