|
Control Instruments Group Limited - Interim Results For The Six Months Ended 30
Release Date: 13/08/2003 08:30:02 Code(s): CNL
Control Instruments Group Limited - Interim Results For The Six Months Ended 30
June 2003
Control Instruments Group Limited
(Registration Number: 1964/003987/06)
ALPHA CODE: CNL
ISIN CODE: ZAE000001665
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003
HEADLINE EPS EXCLUDING DEFERRED TAX 47% TO 11.0C
HEADLINE EPS 157% TO 19.3C
INTERIM DIVIDEND 50% TO 1.5C PER SHARE
TURNOVER 13.4% TO R174.5M
PROFIT FROM OPERATIONS 22.5% TO R11.2
GOOD PROSPECTS FOR REMAINDER OF 2003
OVERVIEW
The Group"s results for the six months ended 30 June 2003 were good.
Despite the strong rand and ongoing turbulence in the global automotive
industry, the Group"s focus on niche and specialised market segments has
resulted in continued growth. The Group"s domestic business and capital
expenditure benefited from the strengthened currency.
R12 million was spent on manufacturing and engineering facilities. A Six Sigma
quality and efficiency improvement program is also in the process of being
implemented.
The Group continued to invest in the development of products in which it owns
the Intellectual Property. Additional senior management and engineering staff
were appointed. The short term effect of this has been a disproportional
increase in operating expenses during the six months. However the medium and
longer term effects will be the introduction of new products and services and a
strong staff complement for future growth.
During the period under review the Group purchased 12 million shares from the
Hersov family. Two million of these shares were placed with directors and other
shareholders, two million were cancelled and the remaining eight million are
held as treasury shares.
The Group disposed of its remaining interest in Striata (Pty) Limited (formerly
known as Emailco) for R2.5 million. US$150,000 was received in respect of the
sale of Rhomberg (Pty) Limited with a final tranche of US$150,000 due in
November 2003.
RESULTS
Turnover grew by 13.4% to R174.5 million compared with the same period in 2002.
Profit from operations before amortisation, depreciation, interest and tax
increased by 26.1% to R18.3 million and net profit before tax by 5.6% to R7.6
million.
In order to comply with Generally Accepted Accounting Practice (GAAP), the Group
is required to raise a deferred tax asset of R6.5 million. Net profit after tax
grew by 18.2% to R6.8 million and after the deferred tax adjustment by 130.5% to
R13.3 million.
Headline earnings per share for the six month period excluding deferred tax
increased by 47% to 11c, and including deferred tax by 157% to 19.3c.
The balance sheet remains sound, however it reflects the reduction in cash
mainly as a result of the ongoing investment in property, plant and equipment.
ACCOUNTING POLICIES
The results for the six months ended 30 June 2003 have been prepared on a basis
consistent with the accounting policies set out in the last Annual Financial
Statements and in accordance with South African Statements of GAAP.
PROSPECTS
The Group"s positioning in its markets means that prospects for the second half
of 2003 are good, despite the current difficult industry and economic
conditions.
The sale of a number of new products for the OEM (Original Equipment
Manufacture) automotive industry, including instrument clusters, new OBD2
compliant engine management systems and various other electronic modules for
Bentley, Toyota, Volkswagen, Nissan, MG Rover and Proton have commenced.
An aggressive sales campaign aimed at increasing market share in the vehicle
security aftermarket in Southern Africa was launched in June 2003 and this will
be extended internationally during the second half of the year.
A new and technically advanced vehicle and fleet telematics product, which has
been undergoing market testing during the first half of the year, will be
launched commercially in South Africa during the third quarter and globally in
the last quarter of 2003.
The Group also expects ongoing growth in the domestic and African markets for
Siemens VDO products.
DECLARATION OF INTERIM DIVIDEND
Notice is hereby given that the board has declared an interim dividend of 1.5
cents per share in respect of the six months ended 30 June 2003, payable to
shareholders recorded in the Company"s register on Friday 5 September 2003.
(Interim 2002: 1 cent per share).
The last day to trade cum dividend will be Friday, 29 August 2003. The shares
will commence trading ex dividend as from Monday, 1 September 2003 and the
record date will be Friday, 5 September 2003. The dividend will be paid on
Monday, 8 September 2003. Share certificates may not be dematerialised or
rematerialised between Monday, 1 September 2003 and Friday, 5 September 2003,
both days inclusive.
On behalf of the Board of Directors
H.V. Hefer Chairman
R. Friedman Managing Director
13 August 2003
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2003
SHARE SHARE TREASURY RETAINED
CAPITAL PREMIUM SHARES RESERVES EARNINGS TOTAL
R 000 R 000 R 000 R 000 R 000 R 000
Balance at
1 January 2002 4,424 47,603 170 18,853 71,050
As previously
reported 4,424 47,603 170 19,861 72,058
Change in
accounting policy (1,008) (1,008)
Net profit 5,757 5,757
Balance at
30 June 2002 4,424 47,603 170 24,610 76,807
Net losses not
recognised in the
income statement:
Utilisation of
currency
translation
reserve (97) (97)
Net profit 2,085 2,085
Dividend paid (885) (885)
Balance at
31 December 2002 4,424 47,603 73 25,810 77,910
Net losses not
recognised in the
income statement:
Utilisation of
currency
translation
reserve (115) (115)
Net profit 13,269 13,269
Shares bought back
and cancelled (111) (2,112) (2,223)
Purchase of
treasury shares (8,392) (8,392)
Dividend paid (863) (863)
Balance at
30 June 2003 4,313 45,491 (8,392) (42) 38,216 79,586
CONSOLIDATED BALANCE SHEET
AT 30 JUNE 2003
30/06/03 30/06/02 31/12/02
R 000 R 000 R 000
ASSETS
Non-current assets 83,249 73,376 72,902
Property, plant and equipment 49,804 36,293 41,894
Intangible assets 13,323 11,715 13,635
Investment in joint ventures 2,643 782 3,341
Other investments and
non-current receivables 10,588 24,586 13,608
Deferred tax 6,891 - 424
Current assets 84,550 82,930 92,561
Inventories 36,084 33,837 31,239
Receivables and prepayments 44,532 49,077 43,550
South African Revenue Services 16 16 31
Cash and cash equivalents 3,918 - 17,741
Total assets 167,799 156,306 165,463
EQUITY AND LIABILITIES
Capital and reserves 79,586 76,807 77,910
Non-current liabilities 18,805 13,742 14,610
Current liabilities 69,408 65,757 72,943
Trade and other payables, provisions
and current borrowings 68,572 61,895 71,535
South African Revenue Services 836 - 1,408
Bank overdraft - 3,862 -
Total equity and liabilities 167,799 156,306 165,463
Net asset value per share (Rand) 1.02 0.87 0.88
CONSOLIDATED CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
6 MONTHS 6 MONTHS 12 MONTHS
ENDED ENDED ENDED
30/06/03 30/06/02 31/12/02
R 000 R 000 R 000
Cash flows from operating activities
Operating profit before working
capital changes 18,698 14,541 27,967
Working capital changes (11,429) (3,473) 17,170
Cash generated from operations 7,269 11,068 45,137
Interest received 22 3 205
Interest paid (2,480) (1,911) (4,287)
Dividends paid (863) - (885)
Tax (paid)/received (1,350) 177 (70)
2,598 9,337 40,100
Cash flows from investing activities
Purchase of property, plant, equipment (12,081) (7,977) (16,964)
Increase in intangible assets (2,648) (599) (5,132)
Decrease/(increase) in investments
in joint ventures 170 22 147
Proceeds from disposal of investments 2,500 - 6,360
Disposal of operations, net of cash - (2,851) (2,851)
Acquisition of operation, net of cash - (6,000) (6,000)
Decrease in investments
and non-current receivables - 329 (2,219)
(12,059) (17,076) (26,659)
Cash flow from financing activities
Increase in long-term borrowings 6,253 2,953 3,376
Purchase of treasury shares (8,392) - -
Shares cancelled (111) - -
Share premium on cancelled shares (2,112) - -
(4,362) 2,953 3,376
Net cash (outflow)/inflow
for the period (13,823) (4,786) 16,817
Cash and cash equivalents at the
beginning of the period 17,741 924 924
Cash and cash equivalents at the end
of the period 3,918 (3,862) 17,741
CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2003
%
NOTES 6 MONTHS 6 MONTHS VARIANCE 12 MONTHS
ENDED ENDED ENDED
30/06/03 30/06/02 31/12/02
R 000 R 000 R 000
Revenue 174,540 153,871 13.4 335,097
Continuing operations 174,540 153,221 334,256
Discontinuing
operations - 650 841
Cost of sales (112,642) (101,534) (221,119)
Gross profit 61,898 52,337 18.3 113,978
Continuing operations 61,898 51,932 113,605
Discontinuing
operations - 405 373
Other operating income 6,880 7,624 8,026
68,778 59,961 122,004
Operating expenses (50,468) (45,442) 11.1 (94,393)
Continuing operations (50,068) (43,355) (91,117)
Discontinuing
operations (400) (2,087) (3,276)
Profit from operations
before amortization
depreciation,
interest and tax 1 18,310 14,519 26.1 27,611
Continuing operations 18,704 16,166 15.7 30,511
Discontinuing
operations (394) (1,647) (2,900)
Depreciation and
mortisation of other
intangible assets (6,262) (4,507) (9,622)
Amortisation of
goodwill (869) (887) (1,773)
Profit from operations 11,179 9,125 22.5 16,216
Net interest (2,458) (1,908) (4,082)
Amortisation of
goodwill from joint
venture (528) (22) (482)
Net write down of
investments (598) - (1,920)
Profit before tax 7,595 7,195 5.6 9,732
Tax 5,674 (1,438) (1,890)
Current tax (793) (1,438) (1,624)
Deferred tax 6,467 - (266)
Net profit 13,269 5,757 130.5 7,842
Weighted average
number of shares in
issue (000) 78,268 88,486 88,486
Earnings per share
(cents) 16.95 6.51 160.4 8.86
Headline earnings
(Rand) 15,106 6,644 127.4 12,063
Headline earnings per
share (cents) 2 19.30 7.51 157.0 13.63
Dividend per share
(cents) 3 1.00 0.00 1.00
Excluding deferred
tax:
Weighted average
number of shares
in issue (000) 78,268 88,486 88,486
Earnings per share
(cents) 8.69 6.51 33.5 9.16
Headline earnings
(Rand) 8,639 6,644 30.0 12,329
Headline earnings per
share (cents) 11.04 7.51 47.0 13.93
NOTES TO THE INCOME STATEMENT
1. Profit from operations
Profit from operations is stated after taking into account the following:
Profit on sale of investment 58 - -
Depreciation and
amortisation of
other intangible assets 6,262 4,507 9,622
2. Reconciliation of EPS
to Headline EPS
Earnings per share (cents) 16.95 6.51 8.86
Net write down of
investments 0.77 - 2.17
Profit on disposal of
investment (0.20) - -
Goodwill amortised 1.78 1.00 2.60
Headline earnings per
share (cents) 19.30 7.51 13.63
Due to a change in accounting policy in order to conform with AC123 and AC135
(regarding the treatment of land and buildings), EPS and Headline EPS for 30
June 2002 have been restated.
3. Dividends paid
Interim dividend declared in respect of six months ended
30 June 2002
One cent per ordinary share - - 885
Final dividend declared in
respect of year ended
31 December 2002
One cent per ordinary
share 863 - -
Total dividends paid
in respect of 2002 863 - 885
REGISTERED OFFICE: Philips Office Park, 195 - 215 Main Road, Martindale 2092 *
PO Box 114, Franschhoek 7690 * TRANSFER SECRETARIES: Computershare Investor
Services Limited 70 Marshall Street, Johannesburg, 2001 * PO Box 61051,
Marshalltown 2107
REGISTRATION NUMBER: 1964/003987/06 * ALPHA CODE: CNL * ISIN CODE:
ZAE000001665 * DIRECTORS: HV Hefer (Chairman)* R Friedman (Managing) EPH
Bieber* SV Bromfield* TE Buzer (British) RB Forrester RJ Fraenkel JPS
O"Leary* (Irish) *non-executive
www.ci.co.za
| 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 ] | |||||||||||||
|
|||||||||||||
