| Tue 3 Sep 2002, 0:00 | | Concor Limited - Reviewed Results For The Year End |
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CONCOR LIMITED - Reviewed results for the year ended 30 June 2002
Highlights
* Strong cash flow * Reduction in debt
* Earnings per share 119 cents
* Dividend per share 30 cents * Record work on hand
Summarised consolidated income statement
Reviewed Restated
Year ended Audited
30 June 30 June
2002 2001
R000 R000
Revenue 1 279 572 1 135 501
continuing operations 1 275 931 1 084 622
discontinuing operations 3 641 50 879
Operating income before depreciation 65 709 44 211
Depreciation 32 652 27 850
Operating income from continuing
operations before interest 33 057 16 361
Operating (loss)/income from
discontinuing operations
before interest (8 776) 741
Interest received 16 11 922
Interest paid (13 763) (15 524)
Income before taxation 26 695 13 500
Taxation 9 170 2 650
Income after taxation 17 525 10 850
Associates losses after tax (1 999) (2 192)
Outside shareholders` interest 348 (269)
Earnings attributable to ordinary
shareholders 15 874 8 389
Headline earnings attributable to
ordinary shareholders 15 874 8 389
Number of shares in issue 13 347 594 13 347 594
Earnings per share (cents) 118,9 62,9
Headline earnings per share (cents) 118,9 62,9
Dividend per share (cents) 30,0 -
Summarised consolidated balance sheet
Restated
Reviewed Audited
30 June 30 June
2002 2001
R000 R000
Fixed assets 107 427 77 381
Unlisted investments and associates 164 322 146 747
Outside shareholders` interest 18 366
Interest-bearing debt 41 858 58 615
Current liabilities 556 173 367 742
Total equity and liabilities 762 371 573 470
Net asset value per share (Rand) 12,31 10,99
Gearing % 25 40
Capital expenditure (R000) 64 113 50 242
Capital commitments (R000) 38 705 35 000
Statement of changes in equity
Non-
distri- Re-
Share capital butable tained
and premium reserve income Total
R000 R000 R000 R000
Balance at 1 July 2000
As previously reported 58 314 81 530 139 844
Special purpose entity
Consolidated (470) (470)
Depreciation of land
and buildings (1 016) (1 016)
As restated 58 314 80 044 138 358
Earnings attributable to
shareholders to 30 June 2001 8 389 8 389
Balance at 1 July 2001 58 314 88 433 146 747
Earnings attributable to
shareholders to 30 June 2002 15 874 15 874
Foreign currency translation
Reserves 1 701 1 701
Balance at 30 June 2002 58 314 1 701 104 307 164 322
Notes
1 Compliance with GAAP
These preliminary results have been compiled in accordance with South African
Statements of Generally Accepted Accounting Practice.
2 Accounting policies
The same accounting policies and methods of computation have been used in the
preparation of these preliminary financial statements as were used in the annual
financial statements to 30 June 2001, except as noted below:
Specialised properties are now depreciated in accordance with AC123: Property,
plant and equipment. Special purpose entities are consolidated as required by
AC412. The changes in accounting policy have been applied retrospectively.
3 Audit opinion
The preliminary results for the year ended 30 June 2002 have been reviewed by
KPMG. Their unqualified review opinion is available for inspection at the
company`s registered office.
Consolidated cash flow statement
Reviewed Restated
Year ended Audited
30 June 30 June
2002 2001
R000 R000
Operating activities
Cash receipts from customers 1 263 194 1 084 691
Cash paid to suppliers 1 036 858 949 223
Cash generated by operations 226 336 135 468
Net interest received/(paid) 2 414 (3 602)
Dividends received 26 -
Taxation (paid)/refunded (8 670) 628
Cash inflow from operating activities 220 106 132 494
Investment activities (80 075) (47 217)
Proceeds on disposal of fixed assets 5 736 7 245
Acquisition of fixed assets (64 113) (50 242)
Cash effects of outside shareholders (3 186)
Unlisted investments 9 025)
Associated companies (12 673) (1 034)
Net cash generated 140 031 85 277
Financing activities 24 369 (22 496)
Decrease in interest-bearing debt (16 757) (37 939)
Loans repaid by associates 41 126 15 443
Increase in deposits and cash 164 400 62 781
Segmental information
Year ended Year ended
30 June 30 June
2002 2001
% R000 % R000
Turnover
Construction 82 1 040 847 76 861 756
Manufacturing 235 084 20 222 866
Discontinuing operations 0 3 641 4 50 879
100 1 279 572 100 1 135 501
Income before taxation
Construction 142 37 779 69 9 279
Manufacturing 23 6 138 91 12 324
Discontinuing operations (65) (17 222) (60) (8 103)
100 26 695 100 13 500
Geographical turnover
Republic of South Africa 79 1 017 079 83 946 745
Rest of Africa 21 262 493 17 188 756
100 1 279 572 100 1 135 501
Comments
Overall, the Group has made good progress during the year under review in
improving its operating margin, eliminating underperforming areas and building
capacity.
OPERATIONAL REVIEW
Both the Surface and Underground Mining divisions have expanded their operations
in the Platinum sector and have grown their forward order book for the year
ahead. Contracts in surface mining are of a long-term nature with a well-
established client base.
The Civils Division performed below expectations in Mozambique where we have
downscaled our general contracting activities. In contrast, Civils produced good
results in the mining and industrial sectors and has a good forward order book
with its participation in the Hillside Smelter, Zambia and Ngqura Harbour
projects.
The Building Division improved on last year`s performance and is now well on its
way to being a solid competitor for major building projects. The new
Johannesburg International Airport Domestic Terminal is ahead of schedule and
the division has recently been awarded the New Ushaka Theme Park in Durban in
joint venture with others.
The Roads Division is steadily improving its margins and the Bakwena Toll Road
is on schedule, projects in Zambia, Botswana and Mozambique are ongoing.
The Engineering Division had an excellent year and projects participated in
during the year include Tati Nickel, Lonmin Platinum and Marikana Platinum.
The Facility Management Division had good results for the year and an
empowerment partner has been identified to participate in the Cape Point
Development.
The Technicrete Division is well positioned to respond to opportunities in the
mining sector, which currently accounts for 50% of its revenue.
LOSS ON DISCONTINUING OPERATIONS
The Group has sold its 331/3% share in The Glen Shopping Centre, resulting in a
loss, as reported in the December interim results. Two further properties have
been sold during the last six months of the year. The disposal of the remainder
of the property portfolio will not have a material effect on the Group`s
results.
CASH FLOW AND WORKING CAPITAL
The Group achieved its objective to reduce its interest-bearing debt to asset-
based finance only and to increase its cash reserves. This was achieved with the
sale of property developments, awards of large cash positive projects, and
active stock and debtor management.
PROSPECTS
The prospects for the next two to three years for the Building and Construction
sector are positive. Our mining and industrial clients are investing in new
facilities, the public sector is providing funds for new roads, harbours,
airports and other fixed infrastructure and a number of opportunities exist in
the SADC region.
The award on the Ngqura Harbour Project in joint venture with Hochtief and an
empowerment consortium is a major achievement and will provide a good base load
for the years ahead.
Work on hand amounts to R1,5 billion and, as a whole, Concor is well positioned
to respond to the improved environment, which will result in continued growth in
profitability.
DIVIDEND
On the basis of results achieved and future expectation, the Board has elected
to resume dividend payments. Accordingly, notice is hereby given that the board
has declared a final dividend of 30 cents per ordinary share for the year to 30
June 2002. The dividend will be payable on Monday, 30 September 2002.
In terms of the requirements of STRATE Thursday, 19 September 2002, is the last
day on which the shares can be traded cum dividend. As from Friday, 20 September
2002, shares will trade ex dividend. The record date is Friday, 27 September
2002.
Share certificates may not be dematerialised or rematerialised between Friday,
20 September 2002, and Friday, 27 September 2002, both dates inclusive.
On behalf of the board
JV WILLMOTT FW KELLER
Chief Executive Chairman
3 September 2002
Directors
FW Keller (Chairman) JV Willmott (Chief Executive Officer) AJ Bester M
Lommatzsch
Secretary
RC Davies
Registered office
Concor House 13 Church Street Ext Crown Industria Johannesburg 2001 (PO Box
8259 Johannesburg 2000)
Transfer secretaries
Computershare Investor Services Limited
11 Diagonal Street Johannesburg 2001 (PO Box 1053 Johannesburg 2000)
(Registration number 1969/003076/06) (Incorporated in the Republic of South
Africa) ISIN no ZAE000001616 Share code CNC
Date: 03/09/2002 02:42:00 PM Produced by the JSE SENS Department
