| Mon 16 Sep 2002, 10:09 | | Gencor Limited - Consolidated Results For The Year |
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Gencor Limited - Consolidated results for the year ended 30 June 2002
GENCOR LIMITED
Registration number 1895/001232/06
ISIN: ZAE000013066
Share code: GMF
Consolidated results for the year ended 30 June 2002
Income Statement
30 June 30 June
2002 2001
(Rm) Notes Audited Audited
Ordinary dividends from Implats 1 065.1 869.2
Special dividend from Implats - 918.2
Dividend income 1 1 065.1 1 787.4
Share of Implats` income net of 2 2 039.8 1 662.3
dividends and adjustments
Equity accounted income 3 104.9 3 449.7
Net interest income 38.9 27.1
Net corporate costs (18.5) (16.3)
Operating income 3 125.3 3 460.5
Other income 89.4 90.6
Corporate activities (1.2) (1.6)
Income before taxation 3 213.5 3 549.5
Taxation on equity earnings (987.7) (1 302.3)
Ordinary taxation on company (9.8) (8.0)
Attributable income 2 216.0 2 239.2
Earnings per share
Earnings per share is calculated on 348.6 348.6
the weighted average number of
shares in issue (m)
and is based on attributable income 2 216.0 2 239.2
of (Rm)
and after deducting other net income (88.2) (89.0)
and costs of corporate activities
Headline earnings 2 127.8 2 150.2
Basic and diluted earnings (cents) 636 642
Headline earnings (cents) 610 617
Dividends per share (cents)
Ordinary 306 253
Special - 264
Balance Sheet
Investment in Implats 2 & 3 4 269.8 3 097.9
Other non-current assets 0.5 10.9
Current assets 416.9 366.0
Total assets 4 687.2 3 474.8
Capital and reserves 4 646.1 3 377.5
Current liabilities and provisions 41.1 97.3
Total equity and liabilities 4 687.2 3 474.8
Statement of changes in equity
Opening balance 3 377.5 2 359.1
Adjustment for dividends proposed 1 - 449.7
Total ordinary dividends for year (1 066.7) (1 802.2)
Attributable income 2 216.0 2 239.2
Equity portion of investments 3 119.8 131.7
revalued by Implats
Redemption of preference shares (0.5) -
Total shareholders` equity 4 646.1 3 377.5
Cash flow statement
Operating cash flows (34.2) 25.7
Dividends received 1 065.1 1 787.4
Dividends (paid) (1 066.7) (1 802.2)
Net cash from operating activities (35.8) 10.9
Other activities 66.8 13.4
Repayment of loan to and surpluses 17.8 125.0
earned by Share Incentive Trust
Net increase in cash 48.8 149.3
Closing cash balance 409.0 360.2
Valuation
Market value of investment in Implats (Rm) 17 501 12 346
Interest in Implats (%) 46.0 46.1
Number of Gencor shares in issue (m) 348.6 348.6
Ruling share price on JSE at year-end 4 500 3 380
(cents)
Gencor`s market capitalisation (Rm) 15 687 11 782
Gencor`s discount to market value of listed 10.4 4.6
investments (%)
Net asset value per share (cents) 1 333 969
Notes to the financial statements
1. During the year, the group adopted the provisions of South African Accounting
Standard AC107 (revised), namely, "Events occurring after the balance sheet
date". Under the revised accounting policy, dividends and the related secondary
tax will only be brought to account once dividends have been declared.
This change has had no effect on the attributable earnings. The opening share of
the associate`s (Implats) and the company`s retained earnings have been adjusted
by an amount of R449.7 million in the aggregate in the "Statement of Changes in
Equity".
2. Implats is equity accounted.
3. During the year, Implats adopted the provisions of IAS 39 (Financial
Instruments: Recognition and Measurement). As a result adjustments to reserves
that arise on the valuation, at market prices, of Implats listed investments
that are not equity accounted by it, have been included by Gencor in the
"Statement of Changes in Equity".
4. The company gave certain limited warranties and an indemnity, for five years
and capped at an aggregate amount of US$220 million, to Billiton Plc in relation
to the businesses that were transferred to it in July 1997, that expired at the
end of July 2002. No claims or liabilities arose against these warranties.
5. Gencor also has certain obligations relating to the closure of the Prima
Lirang gold mine in Indonesia that are due to expire in 2002. Negotiations have
commenced with the authorities on the issue of the appropriate closure
certificate. The directors believe that amounts provided are sufficient to meet
its commitments.
6. Except as noted in 1 above, the accounting policies used by the group are in
accordance with South African Generally Accepted Accounting Practice and are
consistent with those used of the previous year. Where necessary, comparative
figures have been adjusted to conform to changes in presentation in the current
year.
7. The consolidated results for the year have been audited by
PricewaterhouseCoopers and their unqualified audit opinion is available for
inspection at Gencor`s registered office.
Comments
Results
Gencor`s attributable income for the financial year ended 30 June 2002 amounted
to R2 216 million, a decrease of 1% on the R2 239 million reported in the
previous financial year.
Ordinary dividend income from Impala Platinum Holdings Limited ("Implats")
amounted to R1 065 million, in contrast to the R1 787 million earned in 2001,
which included a special dividend of R918 million. Total equity accounted income
(before tax) amounted to R3 105 million (R3 450 million in 2001).
Net interest receipts totalled R39 million compared to the R27 million posted
last year and net corporate costs of R18 million were recorded for the twelve-
month period (R16 million in 2001). Other net income of R89 million was earned
(2001: R91 million) comprising principally the surplus of R8 million (2001: R75
million) in the Share Incentive Trust, the commutation of insurance policies
yielding R68 million and R13 million provisions written back.
Implats
Despite much lower dollar prices for the metals produced by Implats earnings for
the year under review were only second to those achieved in the record 2001
financial year due to the weaker rand and higher metal volumes produced and sold
compensating for the much lower metal prices that prevailed. Implats`
attributable income of R4 581 million for the year was consequently just 1% less
than the R4 647 million earned in the previous year. Implats` 27% investment in
Lonmin platinum mines increased its contribution to the bottom line as a result
of its expansion in production and secondary sourcing and tolling revenue rose
on the basis of higher throughput.
As a consequence of its outstanding results Implats` ordinary dividends totalled
3 480 cents per share (5 840 cents in financial year 2001, which included a
special dividend of 3 000 cents per share). A final dividend of 2 600 cents per
share (2001: 2 380 cents per share) was proposed and approved by the Implats`
directors on 22 August 2002.
Market Values
The R17.5 billion market value of Gencor`s investment in Implats at the end of
June 2002 exceeded its R12.3 billion market value at 30 June 2001 by 42%.
Gencor`s market capitalisation of R15.7 billion (2001: R11.8 billion)
represented a discount of 10.4% (2001: 4.6%) to Implats` market value.
Litigation
In the second half of the 2002 financial year Gencor received a total of 37
summonses, amounting to R37 million in aggregate, from persons purporting to be
ex-employees of Griqualand Exploration Finance Company Limited ("Gefco") and/or
Msauli Asbes Beperk ("Msauli"), or other companies alleged to have been
controlled by Gefco and/or Msauli. These litigants seek damages from a variety
of parties including Gencor, on the basis of alleged asbestos related diseases
incurred or contracted during the period from 1950 to 2001 while purportedly
employed on mines operated by Gefco and/or Msauli and/or their subsidiaries.
Having taken advice, including that of senior counsel, on the above issue the
directors do not believe that Gencor is liable in South African law for these
claims. Consequently no provision has been made in this set of annual financial
accounts for any of these claims.
Unbundling
The Gencor Board is proposing that the company`s interest in Implats, subject to
shareholder approval, be distributed to shareholders and the circular in this
regard will be posted to shareholders together with the annual report.
The proposed unbundling will afford the company`s shareholders the opportunity
to obtain a direct interest (and a concomitant benefit) in Implats and should
unlock shareholder value by eliminating the discount at which Gencor shares have
traditionally traded relative to the value of the company`s underlying
investments.
Dividends
In line with the policy of distributing all dividend income received from
underlying investments and to recognise the underlying nature of those receipts,
the Board declared total ordinary dividends of 306 cents per share (2001: 253
cents per share as well as a special dividend of 264 cents per ordinary share)
during the 2002 financial year, absorbing R1 067 million in total.
For and on behalf of the Board
A S du Plessis Non-Executive Chairman W E Bhrmann Director
Dividend No. 153 of 228 cents per share
A dividend No. 153 of 228 cents (2001: 209 cents) per ordinary share was
proposed and declared on 13 September 2002:
- Last day to trade cum-dividend Friday, 4 October 2002
- Trading ex-dividend commences Monday, 7 October 2002
- Record date Friday, 11 October 2002
- Payment date Monday, 14 October 2002
The dividend is payable in the currency of the Republic of South Africa, unless
arrangements to the contrary have been made with the transfer secretaries,
provided such payments are in accordance with the regulations of the South
African Reserve Bank.
Share certificates may not be dematerialised or rematerialised between Monday, 7
October 2002 and Friday, 11 October 2002, both days inclusive.
Registered office
KPMG Crescent, North Wing, First Floor, 85 Empire Road, Parktown 2193.
Postal address
Postnet Suite 222. Private Bag X30500, Houghton 2041
Company secretary
J Marais
Transfer secretaries
Computershare Investor Services Limited, 11 Diagonal Street, Johannesburg, 2001
PO Box 1053, Johannesburg 2000
UK shareholder administration
Project Consultants Limited, Walnut House, Walnut Gardens, Claydon, Banbury,
Oxon OX17 1NA
Sponsor
Investec
The Annual Report will be mailed to shareholders on 16 September 2002 and copies
may be obtained from:
Transfer Secretaries: Computershare Investor Services Limited. PO Box 1053,
Johannesburg 2000. Tel: (011) 370-5000. Fax: (011) 370-5271/2
UK Shareholder Administration: Project Consultants Limited, Walnut House, Walnut
Gardens, Claydon, Banbury, Oxon OX17 1NA. Tel: +44 (01295) 690180. Fax: +44
(01295) 690181/2
Date: 16/09/2002 07:07:00 AM Produced by the JSE SENS Department
