| Mon 17 Feb 2003, 17:23 | | Concor Limited - Interim Report For The Six Months |
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CONCOR LIMITED - Interim report for the six months ended 31 December 2002
CONCOR LIMITED
(Registration number 1969/003076/06)
(Incorporated in the Republic of South Africa)
ISIN no: ZAE000001616
Share code: CNC
CONCOR LIMITED Interim report for the six months ended 31 December 2002
Highlights
* Work on hand R1,1 billion
* Earnings per share 72 cents
* Healthy cash balances
Summarised consolidated income statement
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 December 31 December 30 June
2002 2001 2002
R000 R000 R000
Revenue 733 956 585 189 1 279 572
continuing operations 730 102 582 799 1 275 931
discontinuing operations 3 854 2 390 3 641
Operating income before depreciation 28 457 22 767 56 933
Depreciation 23 965 17 320 32 652
Operating income
before interest 4 492 5 447 24 281
Interest received 16 498 8 058 16 177
Interest paid (7 109) (3 536) (13 763)
Income before taxation 13 881 9 969 26 695
Taxation 3 970 5 874 9 170
Income after taxation 9 911 4 095 17 525
Associates - attributable
after tax losses (294) (989) (1 999)
Outside shareholders` interest - - 348
Earnings attributable to
ordinary shareholders 9 617 3 106 15 874
Headline earnings attributable to
ordinary shareholders 9 617 3 106 15 874
Number of shares in issue 13 347 594 13 347 594 13 347 594
Earnings per share (cents) 72,0 23,3 118,9
Headline earnings per share (cents) 72,0 23,3 118,9
Dividend per share (cents) - - 30,0
Summarised consolidated balance sheet
Unaudited Unaudited Audited
As at As at As at
31 December 31 December 30 June
2002 2001 2002
R000 R000 R000
Fixed assets 153 026 112 215 107 427
Unlisted investments 33 882 27 663 30 856
Deferred tax asset 12 757 5 723 13 291
Current assets 609 379 511 195 621 784
Deposits and cash 228 558 189 462 268 722
Other current assets 380 821 321 733 353 062
Total assets 809 044 656 796 773 358
Shareholders` equity 169 175 151 194 164 322
Outside shareholders` interest 18 366 18
Interest-bearing debt 69 372 69 488 41 859
Current liabilities 570 479 435 748 567 159
Total equity and liabilities 809 044 656 796 773 358
Net asset value per share (Rand) 12,67 11,33 12,31
Gearing % 41 46 25
Net capital expenditure (R000) 67 763 50 066 58 377
Capital commitments (R000) 3 500 3 800 38 705
Statement of changes in equity
Non-dis-
Share capital tributable Retained
and premium reserve income Total
R000 R000 R000 R000
Balance at 30 June 2001 58 314 88 433 146 747
Earnings attributable to
shareholders to 30 June 2002 15 874 15 874
Foreign currency translation
reserves 1 701 1 701
Balance at 30 June 2002 58 314 1 701 104 307 164 322
Earnings attributable to
shareholders to
31 December 2002 9 617 9 617
Dividend paid (4 009) (4 009)
Foreign currency
translation reserves (755) (755)
Balance at 31 December 2002 58 314 946 109 915 169 175
Notes
1 Compliance with GAAP
These interim results have been compiled in accordance with Statements of
Generally Accepted Accounting Practices in South Africa.
2 Accounting policies
The same accounting policies and methods of computation have been used in
the preparation of these interim financial statements as were used in the annual
financial statements to 30 June 2002.
Abridged cash flow statement
Unaudited Unaudited
Six months Six months Audited
ended ended Year ended
31 December 31 December 30 June
2002 2001 2002
R000 R000 R000
Operating activities 3 406 110 803 228 968
Cash generated by operations 22 394 46 123 63 149
Net interest received 9 389 4 522 2 414
Dividend received - - 26
Working capital
(utilised)/generated (24 439) 60 158 172 049
Taxation paid (3 938) - (8 670)
Investment activities (71 083) (34 048) (47 811)
Fixed assets net of disposals (67 763) (50 066) (58 377)
Associated companies and unlisted
investments (3 320) 16 018 10 566
Net cash (utilised)/generated (67 677) 76 755 181 157
Financing activities
Increase/(decrease)
in interest-bearing debt 27 513 10 873 (16 757)
(Decrease)/increase in deposits
and cash (40 164) 87 628 164 400
Segmental information
Unaudited Unaudited Audited
Six months Six months Year
ended ended ended
31 December 31 December 30 June
2002 2001 2002
% R000 % R000 % R000
Revenue
Construction 81 596 306 80 470 444 81 1 040 847
Manufacturing 18 133 796 19 112 355 19 235 084
Discontinuing operations 1 3 854 1 2 390 0 3 641
100 733 956 100 585 189 100 1 279 572
Income before taxation
Construction 75 10 422 170 1 6 898 131 34 970
Manufacturing 28 3 820 35 3 480 20 5 332
Discontinuing operations (3) (361) (105)(10 409) (51) (13 607)
100 13 881 100 9 969 100 26 695
Geographical turnover
Republic of South Africa 85 622 781 80 465 725 80 1 018 746
Rest of Africa 15 111 175 20 119 464 20 260 826
100 733 956 100 585 189 100 1 279 572
Comments
The Group`s performance for the six months ended 31 December 2002, is
satisfactory from an overall point of view at this stage, however the
performance in the Roads and Engineering divisions are below expected target.
The Group has achieved its key short-term objectives to improve the order book,
balance sheet and working capital, close out of the property division and the
introduction of management control and information systems.
OPERATIONAL REVIEW
The Building Division completed the R400 million Johannesburg International
Airport Terminal contract and commenced work on the Ushaka Waterfront contract
in Durban. There is a lack of work in this sector and the Government`s private
partnership initiative may provide opportunities in the future.
Work on the 2,7 billion N4 Platinum Toll Road done by the Roads Division is
ahead of programme and work on contracts in Zambia and Mozambique has started.
An improved result can be expected from the Roads division for the second six
months of the year.
Activity in the Engineering Division has slowed down and a loss-making contract
in Polokwane, due to labour unrest, will be completed by the end of February.
Finalisation of an insurance claim due to material failure will lead to improved
results.
The Civils Division had an outstanding first six months with contracts awarded
in Zambia, Hillside Smelter, Chapman`s Peak and the Sand Bypass at Coega. It
has however been decided to downsize operations in Mozambique due to difficult
trading conditions.
The Technicrete Division has continued its good performance of the last two
years and achieved excellent returns. The upswing in the domestic building
market has boosted sales and Technicrete continues to win market share with new
innovations.
Improved efficiency techniques, new equipment and good client relationships
helped the Opencast and Underground divisions improve their performance,
together with record levels in gold and platinum prices which should in time
translate into additional mining work and should assist the divisions to
continue their good performance.
Results were steady in the Facility Management Division and Concor has, during
the period under review, brought an empowerment partner on board to manage and
market the Cape Point Facility.
Settlement of an insurance claim related to the Glen Shopping Centre, which was
disposed of last year, resulted in a positive result before interest in the
Property Division. The Group`s exposure to Development Property is now limited
to a few structured finance arrangements, that will mature over the next few
years.
Ngqura Harbour
The Company was awarded the R1,5 billion Ngqura Harbour contract in joint
venture with Hochtief and empowerment partners. Work started on site in
September 2002, the site establishment is nearly complete, production on the
bulk earthworks has exceeded expectations so far and the concrete and marine
works will commence within the next few weeks.
CASH FLOW AND WORKING CAPITAL
Capital expenditure primarily relating to the renewal of our plant fleet
amounted to R67 million during the six months, which was financed by a net
increase of R27 million in asset base interest bearing debt. Cash balances
remained healthy at R228 million.
PROSPECTS
Opportunities in the Construction and Mining sectors are promising and have
created growth possibilities for the Group.
Total work on hand amounts to R1,1 billion and all divisions are well positioned
in the market.
The Board expects further improvements in efficiency to contribute to an
improved result in the second six months of the financial year.
DIVIDEND
The Board has decided not to declare an interim dividend.
On behalf of the Board
JV WILLMOTT FW KELLER
Chief Executive Chairman
11 February 2003
Directors
FW Keller (Chairman) JV Willmott (Chief Executive Officer) AJ Bester M
Lommatzsch
Secretary
RC Davies
Registered office
Concor House
13 Church Street Ext. Crown Industria
Johannesburg 2001
(PO Box 8259, Johannesburg 2000)
Transfer secretaries
Computershare Investor Services Limited
11 Diagonal Street
Johannesburg 2001
(PO Box 1053, Johannesburg 2000)
Date: 17/02/2003 05:16:00 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
