| Fri 5 Sep 2003, 9:01 | | UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE |
|
BASIL READ HOLDINGS LIMITED - UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE
2003
Basil Read Holdings Limited
Incorporated in the Republic of South Africa
Registration number 1984/007758/07
Share code: BSR
ISIN: ZAE000029781
("the company")
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2003
SUMMARISED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2003 2002 2002
R"000 R"000 R"000
Revenue 294,602 241,249 612,128
Contract profit for the period 12,600 13,805 31,291
Dividends received 780 - 1,043
Net finance costs (5,704) (3,330) (11,191)
Profit for the period before taxation 7,676 10,475 21,143
Taxation (2,382) - (8,392)
Taxation (2,382) - (1,440)
Deferred taxation - - (6,952)
Profit for the period after taxation 5,294 10,475 12,751
Losses from associates (2,096) - (1,116)
Minority interests 290 86 (1)
Net profit for the period 3,488 10,561 11,634
-
Number of shares in issue ("000) 55,100 55,100 55,100
Earnings per share (cents) 6.33 19.17 21.11
Headline earnings per share (cents) 4.55 10.75 8.74
Diluted earnings per share (cents) 6.03 19.17 20.11
Depreciation for the year (R"000) 16,262 13,731 24,116
Reconciliation of basic earnings to
headline earnings
Basic earnings 3,488 10,561 11,634
Adjusted by - Profit on sale of
property, plant and equipment (980) (4,635) (6,821)
Headline earnings 2,508 5,926 4,813
STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2003 2002 2002
R"000 R"000 R"000
Issued capital
Ordinary share capital at beginning
and end of the period 58,264 58,264 58,264
Other reserves
Foreign currency translation reserve
Balance at end of the period 130 (8,052) (4,586)
Balance at beginning of year (4,586) (16,390) (16,390)
Movement for the period 4,716 8,338 11,804
Cash flow hedge reserve
Balance at end of the period 13,236 - 15,363
Balance at beginning of year 15,363 - -
Movement for the period (2,127) - 15,363
13,366 (8,052) 10,777
Accumulated loss
Balance at beginning of the year (10,551) (22,185) (22,185)
Movement for the period 3,488 10,561 11,634
Balance at end of the period (7,063) (11,624) (10,551)
SUMMARISED CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2003 2002 2002
R"000 R"000 R"000
ASSETS
Non-current assets 200,786 150,776 211,332
Property, plant and equipment 127,044 74,451 130,511
Investments and associates 51,492 47,327 58,862
Outside shareholders" interests 795 591 504
Deferred taxation 21,455 28,407 21,455
Current assets 215,579 227,321 271,305
416,365 378,097 482,637
EQUITY & LIABILITIES
Capital & reserves 64,567 38,588 58,490
Issued capital 58,264 58,264 58,264
Accumulated loss (7,063) (11,624) (10,551)
Other reserves 13,366 (8,052) 10,777
Non-current liabilities
Interest bearing borrowings 88,188 86,043 72,913
Current liabilities 263,610 253,466 351,234
416,365 378,097 482,637
Net asset value per share (cents) 117.18 70.03 106.15
Capital expenditure for the
year (R"000) 23,881 1,334 73,674
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Unaudited Unaudited Audited
6 months 6 months 12 months
30 June 30 June 31 December
2003 2002 2002
R"000 R"000 R"000
Net cash generated / (utilised)
by operations 4,077 (423) 67,103
Taxation refunded / (paid) 9,054 - (1,706)
Dividends received 780 - 1,043
Net finance costs (5,704) (3,330) (11,191)
Cash flow from operating
Activities 8,207 (3,753) 55,249
Cash flow from investing
activities (7,180) 5,779 (63,341)
Cash flow from financing
activities (24,925) (10,819) 12,913
Movement in cash & cash
equivalents (23,898) (8,793) 4,821
Cash & cash equivalents at the
beginning of the year 63,443 58,622 58,622
Cash & cash equivalents at the end
of the period 39,545 49,829 63,443
Structures
Roads and and facilities Plant and
Total opencast mining management head office
R"000 R"000 R"000 R"000
Revenue 294,602 275,909 18,693 -
Net profit / (loss)
before taxation 7,676 7,255 2,829 (2,408)
INTERIM RESULTS COMMENTARY
These results have been compiled in accordance with the South African statements
of Generally Accepted Accounting Practice and Schedule 4 of the South African
Companies Act. The same policies and methods of computation have been used in
the preparation of these interim financial statements as were used in the
preparation of the audited financial statements to 31 December 2002.
Certain comparative figures have been restated in compliance with changes made
to Generally Accepted Accounting Practice.
Overall review
While the overall results are satisfactory, an international contract has posted
lower results than expected. Revenue is up by approximately R53 million as
compared to the same period in 2002. We are still in the development phase of
our empowerment strategy having invested a further R2 million in support of our
empowerment companies. These companies are expected to perform well having
secured R370 million worth of contracts since their inception.
We have continued to invest in plant and equipment in support of new contracts.
New contracts awarded amount to R500 million.
Activity in the Civil Engineering sector in South Africa has been lower than
anticipated in the previous reporting period. In addition, delays in the
awarding of projects where we were the lowest tenderer have resulted in workload
not meeting our expectations. We have, however, seen an improvement during the
second half of the year with a number of contracts being awarded over the June
to September period.
Operational review
The Opencast Mining Division continues to operate successfully on the ramp
scavenging project for Palabora Mining Company which is due for completion by
the end of the year. This Division also has substantial medium term projects on
the platinum fields with the recent award of a further two contracts for the
openpit mining of platinum ore for Lonmin. The Division is also operational on
the Zambian copper belt.
The Roads Division continues to operate profitably. Two of its contracts, namely
N3 Hilton Rehabilitation and Bethal P30-1 Portion D, are to be completed before
the end of the year. Recent awards include the rehabilitation of 116 kilometres
of road in Namibia.
The Structures Division successfully completed the casthouse and potline project
at Hillside Aluminium Smelter in Richards Bay, and our Building Division has
handed over the final section of Phase 1 of a housing development in Alexandra
as well as the construction of the second phase of Medscheme"s regional
processing center in Roodepoort.
Quality and safety awards
The Group"s commitment to excellence in quality and safety has been recognised
by the following awards: being selected out of 40 contractors for the BHP
Biliton Safety Award on the Hillside Smelter Project in May, and the General
Manager"s Safety Award on our Palabora Project in July. The company is also the
recipient of the International Trophy for Quality awarded by the Trade Leader"s
Club, an association of international businesses with some 14 000 member
companies in 120 countries.
Governance
As an indication of the Group"s commitment to good corporate governance, this is
a permanent agenda item at Board meetings. Basil Read endorses the
recommendations of the King Commission and complies with the recommendations in
a manner which is appropriate having regard to the size of the Group. Mr Arthur
Coy resigned from the company"s Board due to his secondment as CEO of Trans
African Concessions (TRAC). With effect from 1 September 2003, Mr Christian
Gazaignes was appointed non-executive Chairman, while Mr Albert Bernardo
continues to act as CEO.
Dividends
No interim dividend has been declared for the period.
By order of the Board
A Bernardo (CEO)
5 September 2003
Directors: CJ Gazaignes* (Chairman); A Bernardo (Chief Executive Officer); A
Brunet *; NMJ Canca*#; BEG Johansson; JM Kiviatkowski*; O Montfort*; HP Maury*;
OM Racine* ( French; * Non-executive; # Independent)
Group Secretary: HJ Power
Registered office: Block D, Gillooly"s View Office Park, 5 Osborne Road,
Bedfordview, 2008
Transfer Secretary: Computershare Investor Services (Pty) Limited
Sponsor: Bridge Capital Services (Pty) Limited
Auditors: PricewaterhouseCoopers Inc
Date: 05/09/2003 08:54:33 AM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
