|
Bearing Man Limited - Group Interim Report and Dividend Declaration
for the six months ended 30 September 2002
Bearing Man Limited
Share code: BRM ISIN number: ZAE000001137
Group Interim Report and Dividend Declaration
for the six months ended 30 September 2002
- Revenue + 41%
- Operating profit + 79%
- Profit before tax + 81%
- Earnings + 82%
Unaudited Audited
Six months ended Year ended
30 September Inc/ 31 March
INCOME 2002 2001 (Dec) 2002
STATEMENT R000 R000 % R000
Revenue 488 975 346 270 41 756 002
Operating profit 65 983 36 908 79 101 616
Interest and foreign
exchange costs 14 309 8 341 72 17 909
Profit before taxation 51 674 28 567 81 83 707
Taxation 16 904 9 440 79 26 398
Earnings for
the period 34 770 19 127 82 57 309
Determination of
headline earnings
Earnings 34 770 19 127 82 57 309
Adjustments - after
tax where applicable
- Amortisation of
goodwill 150 150 300
- Profit on disposal
of property,
plant and
equipment (85) (71) (32)
Headline earnings 34 835 19 206 81 57 577
Shares in issue
Weighted average
(000`s) 105 641 105 641 - 105 641
At end of period
(000`s) 105 641 105 641 - 105 641
Weighted average
including diluted
shares (000`s) 114 206 113 648 - 113 648
Headline earnings
per share (cents) 33,0 18,2 81 54,5
Earnings per share
(cents) 32,9 18,1 82 54,2
Diluted headline earnings
per share (cents) 30,7 17,5 75 50,9
Diluted earnings
per share (cents) 30,7 17,3 77 50,7
Dividends per share
Interim (cents) 11,0* 6,0 83 6,0
Final (cents) - - - 15,0
*An interim dividend for the period ended 30 September 2002 of 11 cents per
share has been declared by the directors on 24 October 2002.
Unaudited Audited
30 September 31 March
BALANCE 2002 2001 2002
SHEET R000 R000 R000
ASSETS
Non-current 86 124 72 161 73 855
Property, plant and equipment 69 567 57 324 60 544
Intangible assets 2 391 2 774 2 583
Long-term receivable 304 596 438
Staff share scheme loans 10 508 8 684 8 408
Deferred tax asset 3 354 2 783 1 882
Current 418 199 344 884 412 818
Inventories 287 611 242 768 286 390
Trade and other receivables 130 588 102 116 126 428
504 323 417 045 486 673
EQUITY AND LIABILITIES
Shareholders` interest 232 642 180 831 212 674
Non-current liabilities 12 732 14 293 13 289
Long-term borrowings 8 793 10 157 10 405
Debentures 3 939 4 136 2 884
Current liabilities 258 949 221 921 260 710
Bank overdrafts 57 482 75 084 63 249
Short-term borrowings 1 695 2 011 1 489
Trade and other payables 199 772 144 826 195 972
504 323 417 045 486 673
Debt : equity (%) 30,9 50,5 36,7
Net tangible asset
value per share (cents) 218,0 168,5 198,9
Unaudited Audited
Six months ended Year ended
30 September 31 March
CASH FLOW 2002 2001 2002
STATEMENT R000 R000 R000
Cash flow from operating activities
Cash receipts from customers 552 764 345 236 732 232
Cash paid to suppliers
and employees (495 852) (307 065) (651 874)
Cash flows from
operating activities 56 912 38 171 80 358
Interest and foreign
exchange costs (14 309) (8 341) (18 429)
Taxation paid (3 809) (10 648) (14 752)
Dividends paid (15 846) (7 372) (13 734)
Net cash inflow from
operating activities 22 948 11 810 33 443
Cash flow from investing
activities
Acquisition of property,
plant and equipment to
maintain operations (18 499) (15 612) (25 844)
Proceeds on disposal
of property,
plant and equipment 2 590 1 719 2 701
Net repayment of
non-current receivable 134 151 309
Business acquired - (4 026) (2 362)
Net cash outflow from
investing activities (15 775) (17 768) (25 196)
Cash flow from financing
activities
Repayment of long-term
borrowings (1 406) (1 737) (2 011)
Debenture loan portion - repaid - - (1 252)
Repayment from share trust - 82 358
Net cash outflow from
financing activities (1 406) (1 655) (2 905)
Net increase/(decrease)
in cash and cash equivalents 5 767 (7 613) 5 342
Cash and cash equivalents received
from business acquired - 1 120 -
Cash and cash equivalents at
beginning of period (63 249) (68 591) (68 591)
Cash and cash equivalents
at end of period (57 482) (75 084) (63 249)
Unaudited Audited
Six months ended Year ended
30 September 31 March
CHANGES IN EQUITY 2002 2001 2002
STATEMENT R000 R000 R000
Stated capital
Balance at beginning
and end of period 57 031 57 031 57 031
Debentures
Balance at beginning of period 4 272 4 272 4 272
Issued during the period 1 044 - -
Balance at end of period 5 316 4 272 4 272
Retained income
Balance at beginning of period 151 371 107 797 107 796
Earnings for the period 34 770 19 127 57 309
Dividends - prior year final (15 846) (7 396) (7 396)
- current year interim - - (6 338)
Balance at end of period 170 295 119 528 151 371
Total shareholders` interest 232 642 180 831 212 674
Directors: DI Samuels* (Chairman), GJ Till (Managing), A Goldstone*,
M Rose-Innes*, RE Sherrell*, WR Taylor
(*Non-executive directors)
Company Secretary: DC Bassett - results are available on - www.bearingman.co.za
Registered office Auditors Transfer secretaries
Bearing Man House Computershare Investor
105 West Street Services Limited
Durban 4001 70 Marshall Street
Johannesburg 2001
COMMENTS
Financial review
We are pleased to report an outstanding performance of the group for the six
months ended 30 September 2002. During the period under review, revenue
increased by 41% and operating profit by 79%. The increase in revenue arose from
a mix of increased prices, caused by the weaker Rand, and an increase in market
share.
Compared to the first half of last year, operating margins increased from 10,7%
to 13,5%, profit after taxation increased by 82% from R19,1 million to R34,8
million, and earnings per share increased by 81% from 18 to 33 cents per share.
This substantial improvement was as a result of increased revenue, better
operating margins and our ability to contain costs.
This strong financial performance had the effect of reducing the
debt : equity ratio from 36,7% at 31 March 2002 to 30,9%.
The increase in interest and foreign exchange costs from R8,3 million to R14,3
million is as a result of group policy of covering forward all foreign exchange
commitments. The weaker Rand caused the Rand value of imports to increase,
thereby increasing the cost of forward cover.
Review of operations
Bearing Man has continued to consolidate and expand its position as the foremost
supplier of dynamic engineering consumables to industry in Southern Africa.
The bearings, seals and conveyor belting divisions all performed above
expectations, each one increasing market share.
The geared motors division experienced tough trading conditions with margins
coming under severe pressure. This division has actively pursued SABS
certification of its new range of electric motors. The certification is imminent
and the introduction of this range should contribute to the growth of this
division.
The power transmission division experienced strong demand for chain product,
whilst ironware and drive belts suffered extensive competition from low priced
product.
Bearing Man`s extensive branch network has been further enhanced by the opening
of six new branches during the period, bringing the total number of branches
throughout Southern Africa to 95. This expansion will continue, including a
proposed branch in Mozambique.
This extensive branch network continues to provide Bearing Man with a
competitive edge and ensures a quality service to its large customer base.
Capital expenditure
A new head office and warehouse is in the course of construction in the La Lucia
Ridge Business Park, Umhlanga. The cost of the development will amount to
approximately R27 million, of which, R10 million has been incurred to date. The
development is scheduled for completion in April 2003. The building will be
funded from the company`s own resources and it is not anticipated to have a
material effect on the debt : equity ratio.
Accounting policies
The accounting policies, as outlined in the 2002 annual report, have been
consistently applied and comply with South African Statements of Generally
Accepted Accounting Practice.
Prospects
The excellent results in the first half of the financial year will provide a
solid base for the group for the whole financial year. Current trading
conditions indicate an improved performance in the second half of the financial
year.
For and on behalf of the board
DI Samuels GJ Till
Chairman Managing Director
Dividends
A final dividend of 15 cents (total 21 cents) in respect of the year ended 31
March 2002 was declared and paid during the period. The directors have,
subsequent to the half year-end, declared an interim dividend (number 29) of 11
cents per share payable to shareholders recorded in the books of the company at
the close of business on the record date of Friday, 22 November 2002. Last date
to trade "cum" entitlement will be Friday, 15 November 2002. Shares will trade
"ex" entitlement from Monday, 18 November 2002. Dividends will be paid to
members on Monday, 25 November 2002.
Share certificates may not be dematerialised or rematerialised between Monday,
18 November 2002 and Friday, 22 November 2002, both days inclusive.
By order of the board
DC Bassett
Company Secretary 29 October 2002
Date: 29/10/2002 11:00:00 AM Produced by the JSE SENS Department
| Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information. | |||||||||||||
| Other Profile Group sites: FundsData Online (unit trust data) | Profile Group corporate site | |||||||||||||
| [ Terms of Use | Privacy Policy | PAIA manual | FAQs/Help | Site Map | © Copyright Reserved 2026 ] | |||||||||||||
|
|||||||||||||
