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Namibian Sea Products Limited - Interim Report 2002
Namibian Sea Products Limited
(Incorporated in the Republic of Namibia)
(Registration number 709/1953)
Share code: NMS ISIN: NA0008640246
Directors: D.S. Shimwino (Chairman), F.P. Kuttel*(Managing),
E.P.H Bieber*, W.E.W. Ghring, P.C. Kuttel*
J.A. Levin*, A J Mays, S. Pick*, P.A. Schwieger. *RSA
INTERIM REPORT 2002
GROUP FINANCIAL RESULTS
The unaudited consolidated results of the group for the six months ended 30
June 2002 are set out below:
The interim report complies with Namibian statements of generally accepted
accounting practice in Namibia and South Africa. It is prepared on the
historical cost basis applying accounting policies and methods of computation as
stated in the latest annual report.
GROUP INCOME STATEMENT 6 months 6 months 12 months
ended ended ended
30/6/02 30/6/01 31/12/01
(unaudited) (unaudited) (audited)
N$`000 N$`000 N$`000
Revenue 72 115 51 070 79 169
Group operating profit before
depreciation and finance costs 7 885 2 503 8 314
Depreciation (1 339) (848) (2 250)
Impairment of non productive
fixed assets (1 148) - -
Finance costs (2 584) (2 737) (5 354)
Group operating profit/(loss) 2 814 (1 082) 710
Investment income 11 4 10
Surplus on disposal of fixed assets 5 566 - -
Profit/(loss) before taxation 8 391 (1 078) 720
Taxation - - 65
Net profit/(loss) after taxation for
the period 8 391 (1 078) 655
Number of ordinary shares upon
which earnings per share is based (000`s) 116 236 116 236 116 236
Earnings per ordinary share (cents) 7.2 (0.9) 0.6
Fully diluted earnings per ordinary
share (cents) 7 (0.9) 0.5
Headline earnings per ordinary share (cents) 2.4 (1.1) 0.4
Reconciliation between earnings
and headline earnings:
N$`000 N$`000 N$`000
Per group income statement 8 391 (1 078) 655
Adjustments:
Surplus on disposal of fixed assets (5 566) (190) (228)
Surplus on disposal of investment - (4) (7)
Headline earnings 2 825 (1 272) 420
GROUP BALANCE SHEET 30/6/02 30/6/01 31/12/01
(unaudited) (unaudited) (audited)
N$`000 N$`000 N$`000
ASSETS
Non current assets
Fixed assets 39 242 42 403 42 560
Unlisted investments 2 994 2 996 2 995
Current assets 40 918 36 681 56 768
83 154 82 080 102 323
EQUITYAND LIABILITIES
Ordinary shareholders` funds 43 579 33 455 35 188
Long term liabilities 3 468 4 020 3 459
Current liabilities 36 107 44 605 63 676
83 154 82 080 102 323
Notes:
1. Number of shares in issue (000`s) 116 236 116 236 116 236
2. Net asset value per share (cents) 37 29 30
3. Interest bearing borrowings 23 596 30 203 54 239
4. Directors valuation of unlisted
investments 2 994 2 996 2 995
5. Cost of sales 60 706 47 160 107 291
6. Staff costs 13 032 5 188 7 927
7. Acquisition of fixed assets 364 224 2 559
GROUPSTATEMENT OF CHANGES IN EQUITY 30/6/02 30/6/01 31/12/01
(unaudited) (unaudited) (audited)
N$`000 N$`000 N$`000
Balance at beginning of period 35 188 34 533 34 533
Net profit/(loss) for the period 8 391 (1 078) 655
Balance at end of period 43 579 33 455 35 188
GROUP CASH FLOW STATEMENT 6 months 6 months 12 months
ended ended ended
30/6/02 30/6/01 31/12/01
(unaudited) (unaudited) (audited)
N$`000 N$`000 N$`000
Cash generated from operations 12 989 23 355 24 559
Investment income 11 4 10
Finance costs (2 584) (2 737) (5 354)
Net cash flows from operating activities 10 416 20 622 19 215
Net cash flows from investing activities 6 398 531 (986)
Net cash flows from financing activities (491) (455) (916)
Net movement in cash and cash equivalents 16 323 20 698 17 313
Cash and cash equivalents at
beginning of period (27 669) (44 982) (44 982)
Cash and cash equivalents at end of period (11 346) (24 284) (27 669)
COMMENTS
QUOTAS AND LANDINGS
The 2002 fishing season commenced on 15 January 2002 and quotas of
310,000 tons (2001: 360,000 tons) of midwater trawl horse mackerel, 40,000
tons (2001: 50,000 tons) of purse seine horse mackerel and nil tons (2001:
10,000 tons) of pilchards were allocated to various rights holders in the
respective industry sectors.
Anchovy, which is not subject to any quotas, was landed in quantities not
seen since 1988. Together with the good catches of purse seine horse
mackerel, your group landed a total of 34,000 tons (2001: 4,200 tons) of
industrial fish for fishmeal processing in Namibia.
PRODUCTION
The group operated its own fishmeal processing facilities in Walvis Bay and
produced 6,200 tons of fishmeal (2001: Nil) and 700 tons of fishoil (2001: Nil)
during the period under review.
The range of products produced under the "Ocean Fresh" label has been
maintained at production levels sufficient to ensure that markets are fully
supplied.
SALES
In the absence of pilchard quotas for the current year, the minimal stock of
canned fish carried over from last year has been sold at satisfactory prices.
Albeit that the South African pelagic industry has been allocated record
levels of pilchard quotas, their landings have fallen far short of expectations,
resulting in higher prices for the canned product, in a market that is
critically short of product.
The fishmeal and fishoil production has been exported at prices better than
last year, due to firmer international prices and the weakening of the
Namibian dollar against the United States dollar.
FINANCIAL
The group`s core business is catching and processing pelagic fish,
principally pilchards for canning purposes. Over the last seven years, the
quotas allocated for pilchards have declined, culminating this year in a nil
quota.
The potentially disastrous financial consequences of nil pilchard quotas were
lessened in this period by the improved industrial fish landings.
In February 2002, one of your group`s fishing vessels sank on the fishing
grounds of Angola without any injury or loss of life. The resultant proceeds
from this insurance claim have been reflected in the attached income
statement.
Your group has decided not to replace this vessel for the time being as its
present catching capacity is reasonably balanced to its processing capability.
Continued attention to cost control and asset utilization has contributed to the
group reporting a net current asset position for the first time since December
1995. Increases in the domestic prime rate have distorted the real reductions in
interest costs as a result of the reduced levels of interest bearing debt.
Shareholders` attention is drawn to the fact that the group`s income does not
accrue evenly throughout the year and that the 2002 season was closed on
31 August, with minimal catches after 30 June 2002. In the light of these
circumstances, the excellent results of the first half-year are not likely to be
repeated in the second half but your directors are of the opinion that the full
year results should remain positive.
DIVIDEND
The board has decided that no interim dividend be declared.
Registered Office
By order of the board 2nd Street East
D S SHIMWINO (Chairman) Walvis Bay
F P KUTTEL(Managing Director) (PO Box 2715 Walvis Bay
20 September 2002 Namibia)
Date: 30/09/2002 09:00:19 AM Produced by the JSE SENS Department
