| Tue 25 Mar 2003, 8:20 | | Putco Properties Limited - Interim results for the |
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Income statement
Putco Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/001085/06)
Share code: PPR ISIN: ZAE000005567
("Putprop")
Interim results for the six months ended 31 December 2002
Income statement
Six months ended Year ended
31 December 30 June
2002 2001 Change 2002
Rm (unaudited) (unaudited) % (audited)
Gross rentals 14,0 14,1 (0,7) 28,4
Cost of operating 2,3 0,9 155,6 2,0
Income before finance income
and taxation 11,7 13,2 (11,4) 26,4
Net finance income 1,3 0,7 85,7 1,5
Income before taxation 13,0 13,9 (6,5) 27,9
Taxation 5,9 4,8 22,9 11,7
Headline earnings 7,1 9,1 (22,0) 16,2
Profit/(loss) on disposal
of fixed assets 0,2 - - (0,3)
Ordinary earnings 7,3 9,1 (19,8) 15,9
Shares in issue (weighted
average number)(millions) 28,8 28,8 28,8
Headline earnings per
share (cents) 24,7 31,6 (21,8) 56,3
Ordinary earnings per
share (cents) 25,3 31,6 (19,9) 55,3
Ordinary dividend per
share (cents) - final 30,0 26,0 15,4 26,0
- interim 70,0
Balance sheet
31 December 30 June
2002 2001 2002
Rm (unaudited) (unaudited) (audited)
ASSETS
Non-current assets 102,3 123,0 107,0
Current assets 19,3 13,3 16,1
Trade and other receivables 3,1 0,1 0,4
Bank call and current
accounts 16,2 13,2 15,7
Total assets 121,6 136,3 123,1
EQUITY AND LIABILITIES
Equity capital and reserves 118,5 133,1 119,9
Non-current liabilities 0,6 0,6 0,6
Current liabilities 2,5 2,6 2,6
Total equity and liabilities 121,6 136,3 123,1
CAPITAL EXPENDITURE
- incurred - 1,8 1,8
- authorised but not
contracted for 0,2 - -
RATIOS
Net asset value per share
(cents) 411 462 416
Cash flow statement
Six months ended Year ended
31 December 30 June
2002 2001 2002
Rm (unaudited) (unaudited) (audited)
Cash inflow from
operating activities (2,7) 3,7 (9,3)
Cash receipts from customers 11,9 17,5 30,8
Cash paid to suppliers (0,6) (1,0) (2,6)
Net cash generated from
operations 11,3 16,5 28,2
Investment income 1,3 0,7 1,5
Taxation paid (6,6) (6,0) (11,4)
Dividends paid (8,7) (7,5) (27,6)
Cash outflow from
investing activities 3,2 (1,8) 13,7
Maintain operations - (1,8) (1,8)
Proceeds on disposal of
property 3,2 - 15,5
Net cash inflow 0,5 1,9 4,4
Bank balance at beginning
of the period 15,7 11,3 11,3
Bank balance at end of
the period 16,2 13,2 15,7
Statement of changes
in equity
Share
capital and Distributable
premium reserves Total
Rm Rm Rm
Half-year ended
31 December 2002
At 30 June 2002 4,1 115,8 119,9
Earnings per income statement 7,3 7,3
Dividend paid (8,7) (8,7)
At 31 December 2002 4,1 114,4 118,5
Half-year ended
31 December 2001 Rm Rm Rm
At 30 June 2001, as restated 4,1 127,4 131,5
Earnings per income statement 9,1 9,1
Dividend paid (7,5) (7,5)
At 31 December 2001, as
restated 4,1 129,0 133,1
Notes:
The interim results have been prepared in accordance with South African
Statements of Generally Accepted Accounting Practice. The accounting policies
are consistent with those applied in the last annual report.
Commentary
General review
Gross rentals remained basically the same when compared to the same period
last year. The Wynberg Property, Sandton, was sold to the City of Johannesburg
Metropolitan Municipality in October 2002 for R3,2 million, excluding VAT. The
new owner took immediate occupancy (prior to transfer), which eliminated the
overhead costs to Putprop.
As reported previously, we have negotiated the waiving of the 9% escalation
clause for Putco Limited for the 2002/2003 financial year (effective January
2003), for the unoccupied premises at Boksburg, Lea Glen, Wembley and Garthdale.
The net effect of these changes largely offset the 9% escalation in rentals
on the other properties.
The cost of operating increased to R2,3 million from R0,9 million for the
comparable period last year. The following items were the main reasons for this
increase in operating costs: the devaluation of the Boksburg and Lea Glen
properties, the rates and taxes and security costs for the properties where the
leases have expired, and the fact that Putprop carried these expenses for the
Wembley property until October 2002. The previous tenant of the Wembley Property
performed extensive renovations which will allow us to rent or sell the Wembley
property more easily.
We experienced a large fire at our Soshanguve depot, in the Limpopo Province,
in November 2002. The damaged portion is being rebuilt and an insurance claim is
being processed.
A detailed assessment is done on an annual basis to determine the maintenance
required on our properties in order to ensure their continued suitable state of
repair. The cost of these actions will be approximately R0,26 million for the
financial year. Net finance income increased to R1,3 million from R0,7 million
for the comparable period. The interest received was much improved due to the
attractive interest rate agreed with the financial institutions for the current
financial year. The bank call and current accounts show a balance of R16,2
million (2001: R13,2 million) as at the end of December 2002.
Net income before taxation was R13,0 million (2001: R13,6 million).
Note that the dividend per share of 30 cents exceeds the ordinary earnings
per share of 25,3 cents. The 30 cents is the final dividend declared in 2002 and
as a result of the new accounting treatment, the dividend is reported in the
current year"s results when it is declared and approved.
Future prospects
We are continuing with our marketing efforts to find purchasers or tenants
for any vacant premises.
The anticipated sale of our Wembley property did not materialise. Discussions
are at an advanced stage regarding the sale of the Baragwanath property in
Soweto.
Your directors are of the view that the time is right to investigate
diversification into other property development projects in industrial,
commercial and/or residential markets. This would require the restructuring of
the current resources to be able to actively participate in these markets. A
plan will be developed to determine the way forward.
Dividend declaration
The directors have decided to declare an interim dividend influenced by the
possible new development strategy that will require cash resources.
Notice is hereby given that an interim dividend of 25 cents (31 December 2001:
70 cents) per share has been declared in respect of the six-month period ended
31 December 2002, payable on Tuesday, 22 April 2003. The last day to trade to
participate in the dividend will be Thursday, 10 April 2003 and the shares will
commence trading, ex-dividend, from the start of business on Friday, 11 April
2003, and the record date will be Thursday, 17 April 2003.
Shareholders may not dematerialise or rematerialise their shares between
Friday, 11 April 2003 and Thursday, 17 April 2003, both dates inclusive.
A Carleo (Chairman and Chief Executive Officer)
E M R L Oldham (Managing Director)
25 March 2003
Registered office Transfer secretaries
5 Mimosa Way Computershare Investor Services Limited
Mimosa Park 70 Marshall Street
Gallo Manor, Sandton, 2194 Johannesburg, 2001.
(Private Bag 3 Wendywood, 2144) (PO Box 1053, Johannesburg, 2000)
