| Wed 4 Dec 2002, 17:12 | | Winhold Limited - Reviewed Consolidated Results Of |
|
Winhold Limited - Reviewed consolidated results of the group for the year ended
30 September 2002.
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share codes: WNH/WNHP)
(ISIN numbers: ZAE000033916/ZAE000008041)
Statement of results
The board announces the reviewed consolidated results of the group for the year
ended 30 September 2002.
Financial Highlights
Headline earnings up 146%
Profit after tax up 83%
Headline earnings per share up 72%
Consolidated Income Statement
Year ended
30 September
2002 2001
R`000 R`000
Revenue 639 371 582 559
Operating profit 22 541 15 345
Goodwill amortised (813) (948)
Net finance costs (5 748) (5 976)
Net profit 15 980 8 421
Taxation (3 258) (1 451)
Profit after taxation 12 722 6 970
Attributable to:
- Outside shareholders (5 171) (3 934)
Profit before dividends 7 551 3 036
Headline earnings 8 070 3 336
Headline earnings per ordinary share (cents) 8,6 5,1
Earnings per ordinary share (cents) 7,9 4,4
Net tangible asset value per ordinary
share (cents) 75,2 77,3
Ordinary shares in issue (000`s) 94 197 85 340
Weighted average ordinary shares in issue 94 197 65 943
Dividend per ordinary share (cents) 2,2 2,0
Reconciliation of headline earnings
Net ordinary shareholders` profit 7 407 2 892
Amortisation of goodwill 813 948
Minority share of goodwill amortisation (150) (504)
8 070 3 336
Supplementary information
Capital commitments 2 900 975
Capital expenditure 7 177 11 775
Depreciation 9 560 9 400
Interest bearing borrowings 47 385 50 411
Interest earning deposits 4 553 4 648
Summarised Consolidated Balance Sheet
Year ended
30 September
2002 2001
R`000 R`000
ASSETS
Fixed and other non-current assets 67 876 71 957
Negative goodwill (5 939) (9 680)
Deferred taxation 1 686 1 965
Current assets 198 478 173 483
Total assets 262 101 237 725
EQUITY AND LIABILITIES
Ordinary share capital and premium 68 060 65 007
Preference share capital and premium 1 602 1 602
Non-distributable reserves 17 838 17 838
Accumulated deficit (20 506) (25 841)
Shareholders` interest 66 994 58 606
Outside shareholders` interest 24 783 22 145
Total equity 91 777 80 751
Non-current liabilities - interest bearing 14 730 12 523
- interest free 1 170 960
Deferred taxation 1 015 1 522
Current liabilities - interest bearing 32 655 37 888
- interest free 120 754 104 081
Total equity and liabilities 262 101 237 725
Summarised Consolidated Statement of Changes in Equity
Shareholders` funds at beginning of year
- as previously reported 60 462 53 859
- prior year adjustment (1 856) (1 610)
- as restated 58 606 52 249
Changes in share capital and premium 3 053 5 172
Changes in accumulated deficit
- current year/as previously reported 7 551 3 282
- prior year adjustment - (246)
Dividend declared - preference (144) (144)
- ordinary (2 072) (1 707)
Shareholders` funds at end of year 66 994 58 606
Summarised Consolidated Cash Flow Statement
Cash flow from/(used in) operating activities 8 162 (921)
Cash flow used in investing activities (5 207) (11 059)
Cash flow used in financing activities (1 705) (1 069)
Net increase/(decrease) in cash
and cash equivalents 1 250 (13 049)
Cash and cash equivalents at
beginning of year (19 421) (6 372)
Cash and cash equivalents at end of year (18 171) (19 421)
Segment Information
Turnover Operating profit
(R`000) (R`000)
2002 2001 2002 2001
BUSINESS SEGMENTS
Flexible plastics
(Gundle) 251 956 225 927 7 896 3 451
Mining consumables
(Inmins) 333 808 317 895 10 712 10 819
Industrial
consumables (Inmins) 53 607 38 737 4 031 1 188
Other - - (98) (113)
639 371 582 559 22 541 15 345
Segment Information
Total assets Gross liabilities
(R`000) (R`000)
2002 2001 2002 2001
BUSINESS SEGMENTS
Flexible plastics
(Gundle) 132 895 124 763 92 460 87 451
Mining consumables
(Inmins) 96 950 88 703 58 361 54 181
Industrial
consumables (Inmins) 23 675 15 024 12 513 6 916
Other 8 581 9 235 6 990 8 426
262 101 237 725 170 324 156 974
Commentary
Financial results
The Winhold group produced its best ever results on an increase in turnover of
10% to R639 million. Profit after tax was up 83%, headline earnings was up 146%,
headline earnings per share was up 72% and dividends per share was up 10%.
When analysing the results it should be borne in mind that an additional 28 254
174 shares were issued to buy out the minorities in Gundle Limited (effective 30
September 2001) and two of its subsidiaries (effective 1 October 2001).
Winhold Limited`s investment in Inmins Limited is approximately 53% of its
shareholding and Gundle Limited and its subsidiaries are now wholly owned.
Inmins Limited
The group continued its high growth path of the past six years and, again
delivered its best ever profit performance. Turnover increased by 9% to R387
million, profit after tax increased by 31% to R11,1 million. Headline earnings
increased by 20% to 29,6 cents per share and the dividend per share was
increased by 31% to 11,0 cents per share.
All business units performed well in an extremely competitive environment, and
the deliberate policy of serving different markets proved to be successful. In
the mining supplies division, the profit before tax was in line with its record
performance of last year. The value added division which also mainly services
the mining sector recorded a best ever profit before tax which improved 10,7%
over last year`s record performance. The industrial supplies division delivered
outstanding results. The specialised business unit which was started three years
ago in this division, delivered exceptional growth and profitability.
All business units should continue to contribute to the profits of the group.
New mining projects expand the horizons for the group and the group will
continue to explore these opportunities. Challenges in the industrial division
create exciting opportunities for improved results. Further capital will be
invested as this division is expanding both geographically and in its
activities.
The effective tax rate of the group is expected to rise.
Gundle Limited
Turnover increased by 11,5% and operating profit increased by 117%. The
turnaround strategy is gaining momentum through research and development, new
products and marketing development. Investments have been made in management and
modern machinery. Through improved profitability interest bearing debt will be
reduced and the balance sheet strengthened accordingly.
Accounting policies
The results for the year ended 30 September 2002 have been prepared in
accordance with the South African Statements of Generally Accepted Accounting
Practice, and with those applied in previous annual financial statements, save
for a change in accounting policy whereby depreciation of investment and owner-
occupied properties is applied. Comparative figures for the previous year have
been restated, which resulted in the opening retained earnings for the current
year being reduced by R1 855 606 (ie 2,0 cents per share). In aggregate, the
adoption of these accounting policy changes reduced headline earnings per share
by 0,2 cents (2001: 0,3 cents).
Review by the independent auditors
The financial information set out in this preliminary report has been reviewed,
but not audited by PricewaterhouseCoopers Inc. Their unqualified review report
is available for inspection at the company`s registered office.
Corporate governance
The group subscribes to the value of good corporate governance and is committed
to continued implementation of the recommendations of the King II Report and the
requirements of the JSE Securities Exchange South Africa. The group endeavours
to conduct its business in accordance with the principles of accountability,
transparency and integrity.
Dematerialisation of shares
STRATE, the electronic settlement system for shares on the JSE Securities
Exchange South Africa ("JSE") implemented a system that requires all paper share
certificates to be converted into an electronic format (dematerialisation)
before they can be traded on the JSE and settled in STRATE. It would appear that
many shareholders are still unaware of the importance of converting to the
electronic record and continue to hold share certificates. All shareholders are
therefore advised to dematerialise their shares and surrender all share
certificates to their CSDP or broker as soon as possible.
Dividends
As Winhold Limited`s only cash inflow comes from dividends received, its policy
is to limit its ordinary dividends to the total dividends received less the
amount required for payment of the preference dividend.
Ordinary: Notice is hereby given that a dividend of 2,2 cents (2001: 2,0 cents)
per ordinary share for the year ended 30 September 2002 has been declared to
holders of ordinary shares recorded in the share register of the company at the
close of business on 17 January 2003.
Preference: Notice is hereby given that a preference dividend of 20,25 cents
(2001: 20,25 cents) per 9% automatically convertible preference share has been
declared for the year ended 30 September 2002 to holders of these shares
recorded in the share register of the company at the close of business on 17
January 2003.
The following apply to both the abovementioned classes of shares:
Last day to trade "cum" dividend is: Friday, 10 January 2003
Commence trading "ex" dividend from: Monday, 13 January 2003
Record date is: Friday, 17 January 2003
Payment date is: Monday, 20 January 2003
Share certificates may not be dematerialised/rematerialised between Monday, 13
January 2003 and Friday, 17 January 2003, both dates inclusive.
On behalf of the board
WAR Wenteler JH Henderson
Chairman Deputy Chairman
5 December 2002
Directors
WAR Wenteler (Chairman), JH Henderson* (Deputy Chairman), W Fourie (Financial),
PJ Kruger, DB Mostert*, CJ Pallas*
(*Non-executive)
Company secretary and registered office
DJ de Villiers
884 Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg, 2000)
e-mail: winholdsec@inmins.co.za
Transfer secretaries
Computershare Investor Services Limited
9th Floor, 70 Marshall Street, Johannesburg, 2001
(PO Box 1053, Johannesburg, 2000)
e-mail: it@registrars.co.za
Auditors
PricewaterhouseCoopers Inc
2 Eglin Road, Sunninghill, 2157
(Private Bag X36, Sunninghill, 2157)
Date: 04/12/2002 05:05:00 PM Produced by the JSE SENS Department
