| Thu 21 Nov 2002, 15:57 | | Intertrading - Unaudited Interim Results For The P |
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Intertrading - Unaudited Interim results for the period Ended 31 August 2002
Intertrading Limited
Registration number 1987/004777/06 ("Intertrading" or "the company")
Share code: ITR ISIN Code: ZAE000015566
Unaudited Interim results for the period ENDED 31 August 2002
- Headline earnings per share stable at 8 cents
- Turnover up 44%
Consolidated income statement
Unaudited Unaudited Audited
half year half year year ended
31 Aug 31 Aug 28 Feb
2002 2001 2002
R`000 R`000 R`000
Revenue 299 270 207 822 418 043
Operating profit before interest
and amortisation of goodwill 6 222 6 289 18 445
Net interest (paid)/received (206) (119) 446
Amortization of goodwill (1 306) (1 024) (2 048)
Net income before taxation 4 710 5 146 16 843
Taxation (1 817) (2 216) (5 921)
Net income after taxation 2 893 2 930 10 922
Post tax realised foreign
currency translation reserve (210) - -
Income from associated
companies - 112 118
Net income attributable
to shareholders 2 683 3 042 11 040
Cash flow statement
Unaudited Unaudited Audited
half year half year year ended
31 Aug 31 Aug 28 Feb
2002 2001 2002
R`000 R`000 R`000
Cash utilised by operations (9 640) (34 377) 19 780
Net interest paid (206) (118) 446
Taxation paid (1936) (808) (2 401)
Dividend paid - (1 500) (1 500)
Cash utilised by operating
activities (11 782) (36 803) 16 325
Net cash flow from investing
activities (1 580) (392) (3 293)
Net cash flow from financing
activities (2 020) 41 552 (156)
Net movement in cash (15 382) 4 357 12 876
Net cash resources at
beginning of the year 9 206 (3 670) (3 670)
Net cash resources at end
of the period (6 176) 687 9 206
statement of changes in equity
Unaudited Unaudited Audited
half year half year year ended
31 Aug 31 Aug 28 Feb
2002 2001 2002
R`000 R`000 R`000
Equity at 28 February 2002 74 351 62 405 62 405
Net profit for the period 2 683 3 042 11 040
Foreign currency translation
reserve (2 406) 483 2 406
Capitalisation distribution (2 000) - -
Dividend declared in respect
of prior year - (1 500) (1 500)
Equity at 31 August 2002 72 628 64 430 74 351
Consolidated balance sheet
Unaudited Unaudited Audited
half year half year year ended
31 Aug 31 Aug 28 Feb
2002 2001 2002
R`000 R`000 R`000
ASSETS
Non-current assets
- Property, plant, equpiment
and trademarks 5 888 5 516 5 667
- Goodwill 36 399 35 839 34 815
- Deferred taxation 728 - 809
- Investments 4 583 1 885 4 146
Current assets 207 557 166 054 118 649
255 155 209 294 164 086
EQUITY AND LIABILITIES
Share capital 5 000 5 000 5 000
Share premium 42 452 44 452 44 452
Foreign currency translation
reserve - 483 2 406
Distributable reserves 25 176 14 495 22 493
Shareholders` interest 72 628 64 430 74 351
Long-term liabilities 425 420 445
Deferred taxation - 540 81
Current liabilities 182 102 143 904 89 209
255 155 209 294 164 086
Financial highlights
Unaudited Unaudited Audited
half year half year year ended
31 Aug 31 Aug 28 Feb
2002 2001 2002
R`000 R`000 R`000
Number of ordinary shares (`000) 50 000 50 000 50 000
Weighted average number of shares
in issue (`000) 50 000 50 000 50 000
Headline earnings per share (cents) 8,0 8,1 26,2
Earnings per share (cents) 5,4 6,1 22,1
Net asset value per share
- excluding goodwill (cents) 72,5 57,2 79,1
COMMENT ON RESULTS
Revenue rose by 44 per cent from R207,8 million to R299,3 million, while pre-tax
income remained steady at R6,222 million. The increase in revenue was mainly
from grain trading which, because of lower margins, did not translate into a
corresponding rise in profits. The increased tempo of grain trading also
accounted for the rise in current assets and current liabilities.
Headline earnings remained stable at 8 cents a share. The difference between
headline earnings per share and earnings per share is the amortisation of
goodwill of R1,306 million (2,6 cents per share).
The negative operating cash outflow resulted from our fruit trading season
peaking later in the year. This increased short term funding requirements as at
the half year.
Trading over the period was affected by a combination of factors, including the
strengthening of the Rand against the currencies of the export markets in which
we operate, and higher interest rates.
Closure of the group`s international company resulted in a realised foreign
currency translation reserve of R1,861 million and a tax on its final dividend
to Intertrading of R2,071 million - the net of which brought about a loss of
R210 000.
In the prior year our grain trading division raised a provision against a
potentially bad debt arising from a sale to the Malawi Government. The debt has
now been acknowledged by the Malawi Government and the Board has thus decided to
reverse R1 million of its provision against this amount in the current year.
Operational Review
Intertrading`s mainline fresh produce business returned a solid performance for
the period under review, though profits from increased volumes were offset by a
strengthened Rand and higher interest rates.
One of the most significant features of the half-year was the acquisition, for
R5,5 million cash, of the remaining 82 per cent of freight forwarding group
Skyservices, which is now a 100 per cent subsidiary. Skyservices handles
virtually all of the cargo of the airfreight business, as well as most of the
group`s seaborne cargo.
In addition, by mutual agreement the core trading team of Western Cape fruit
exporter Blue Continent Fruit joined us. This has reinforced Intertrading`s
strong position in the South African fruit export industry. Their arrival comes
at the beginning of the main season for Western Cape export fruit.
Another major development was the initiation of a process to slow down the
activities of the group`s grain trading subsidiary, Intertrading Africa. While
the original decision to diversify into grain trading was well founded, the
scope of activities of the division grew beyond the group`s willingness to carry
the increased risk and exposure associated with that growth.
Directorate
Following Theo Swart`s appointment as chairman period at the beginning of the
financial year, Thomas Woods was appointed to the board as financial director
with effect from 1 August 2002. He replaces the late Dr A Hahn.
Prospects
Given the seasonal nature of fruit exports, the second half traditionally
generates significantly higher sales and earnings than the first half, and this
year should be no different - although the strengthening Rand and high interest
rates will have some impact on profits.
The continually expanding operations of airfreight and freight forwarding will
compensate for the reduced contribution by the slowing down of grain trading
operations. Although Skyservices is focused predominantly on providing services
to Intertrading operations, work is already in progress to expand its customer
base beyond the group.
Compliance
These interim financial statements have been prepared in accordance with South
African statements of Generally Accepted Accounting Practice and the accounting
policies used are consistent with the prior year.
Distribution
No interim distribution has been declared in line with Intertrading`s policy of
declaring a single annual distribution.
G F M van Rooyen
(Managing director)
T J Swart
(Chairman)
Johannesburg
21 November 2002
Registered office
Kuehne and Nagel House
37 Bath Avenue
Rosebank 2196
(PO Box 1720, Parklands 2121)
Transfer secretaries
Computershare Investor Services Limited
70 Marshall Street
Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
Directors
Mr. T J Swart (Chairman), G F M van Rooyen (CEO), T R Y Woods, A J de Kovel*, B
R Julicher
*Netherlands
Date: 21/11/2002 02:56:00 PM Produced by the JSE SENS Department
