| Tue 9 Sep 2003, 17:05 | | INTERIM REPORT FOR THE SIX MONTHS ENDING 30 JUNE |
|
MASONITE (AFRICA) LIMITED - INTERIM REPORT FOR THE SIX MONTHS ENDING 30 JUNE
2003
MASONITE (AFRICA) LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1942/015502/06)
Share code: MAS ISIN: ZAE000004289
("Masonite" or "the company")
Interim Report for the six months ending June 30, 2003
TRADING RESULTS
INCOME STATEMENTS
6 months to 12 months to
June 30, June 30, December 31,
2003 2002 2002
(unaudited) (unaudited) (audited)
Note (R"000) (R"000) (R"000)
Revenue 148 159 159 544 347 882
Cost of sales (102 354) (100 236) (222 015)
Gross profit 45 805 59 308 125 867
Other operating income 6 824 11 540 3 025
Distribution expenses
and allowances (33 750) (38 953) (82 206)
Selling and general
administrative expenses (10 347) (9 780) (22 754)
Other operating expenses (11 193) (14 091) (8 957)
Net plantation income 2 504 2 108 4 190
Trading (loss)/ income (157) 10 132 19 165
Movement in fair value of
standing timber and sugar
cane as a result of AC 137 2 13 269 2 837 2 837
Profit from operations 13 112 12 969 22 002
Net financing cost (1 236) (402) (340)
Profit before taxation 11 876 12 567 21 662
Income tax expense (3 538) (3 668) (6 395)
Net profit after tax 8 338 8 899 15 267
HEADLINE EARNINGS RECONCILIATION
Total net profit 8 338 8 899 15 267
Adjusted for:
Profit on sale of assets (238) (265) (140)
Tax effect of adjustments 71 80 42
Headline earnings 8 171 8 714 15 169
Number of shares in issue 6 819 224 6 817 558 6 817 558
Earnings per share (cents)
Attributable basis 122c 131c 224c
Headline basis 120c 128c 222c
Fully diluted basis 119c 128c 218c
Dividend per share
- Interim - - -
- Final - - -
BALANCE SHEETS
ASSETS
Non-current assets
Property, plant and equipment 3 175 335 154 355 158 848
Investments 946 890 946
Loans receivable 132 157 145
Total non-current assets 176 413 155 402 159 939
Current assets
Inventories 43 349 32 291 32 868
Trade accounts receivables
less discounts 46 929 56 985 43 390
Other receivables 10 080 9 392 5 241
Amounts due from group companies 4 942 998 6 689
Cash and cash equivalents 3 107 22 714 26 008
Total current assets 108 407 122 380 114 196
Total assets 284 820 277 782 274 135
EQUITY AND LIABILITIES
Capital and reserves
Share capital 5 477 5 471 5 471
Non-distributable reserves 700 700 700
Distributable reserves 175 661 160 955 167 323
Total shareholders" investment 181 838 167 126 173 494
Non-current liabilities
Long-term liabilities 92 345 92
Deferred taxation 29 108 26 656 25 622
Deferred investment allowances 47 118 73
Retirement benefit obligation 14 208 13 087 14 055
Total non-current liabilities 43 455 40 206 39 842
Current liabilities
Trade accounts and other payables 46 776 49 265 56 847
Provisions 3 269 1 400 2 164
Short-term borrowings 12 417 16 988 -
Taxation (2 955) 2 775 1 788
Payable to holding company 20 22 -
Shareholders for dividends - - -
Total current liabilities 59 527 70 450 60 799
Total equity and liabilities 284 820 277 782 274 135
STATEMENT OF CHANGES IN EQUITY
Non-
distri- Accu-
Share butable mulated
Capital reserve profit Total
(R"000) (R"000) (R"000) (R"000)
Balance at December 31, 2001 5 471 700 152 056 158227
As previously reported 102 676
Adjustment - Impact of AC 137 49 380
Net profit for the year 8 899 8 899
Balance at June 30, 2002 5 471 700 160 955 167 126
Balance at June 30, 2002 5 471 700 160 955 167 126
Net profit for the year 6 368 6 368
Balance at December 31, 2002 5 471 700 167 323 173 494
Issue of share capital 6 6
Net profit for the year 8 338 8 338
Dividends paid - -
Balance at June 30, 2003 5 477 700 175 661 181 838
CASH FLOW INFORMATION
June 30, June 30, December 31,
2003 2002 2002
(unaudited) (unaudited) (audited)
(R"000) (R"000) (R"000)
Cash flows from operating activities
Operating profit before
working capital changes 18 317 17 953 32 970
Working capital changes (26 060) (2 907) 16 896
Cash generated/(utilised)
by operations (7 743) 15 046 49 866
Interest received 93 113 895
Interest paid (1 429) (515) (1 235)
Taxation paid (4 820) (4 951) (9 744)
Dividends paid - (2 113) (2 113)
Net cash inflow/(outflow) from
operating activities (13 799) 7 580 37 669
Cash flows from investing activities
Purchase of property, plant
and equipment
Expansion (2 371) (2 948) (6 245)
Replacement (19 377) (5 263) (11 638)
Proceeds from disposal of property,
plant and equipment 210 376 538
Increase in investments - - (56)
Decrease in loans receivable 13 13 25
Net cash outflow from
investing activities (21 525) (7 822) (17 376)
Cash flows from financing activities
Increase in long-term borrowings - - (253)
Proceeds from issue
of ordinary shares 6
Net cash inflow from
financing activities 6 - (253)
Net (decrease)/increase in cash
and cash equivalents (35 318) (242) 20 040
Net cash and cash equivalents
at beginning of year 26 008 5 968 5 968
Net cash and cash equivalents
at end of year (9 310) 5 726 26 008
NOTES
1. Accounting policies
This interim financial report has been prepared using the same accounting
policies as those detailed in the December 2002 Annual Report except as detailed
below and complies with the South African Statement of Generally Accepted
Accounting Practice.
2. Changes in accounting policy
The group has adopted accounting statement AC 137, which requires that
timber and sugar cane be measured at fair value (market price less harvesting
and felling costs), and these values are set out below:
June 30, December 31,
2003 2002
(R"000) (R"000)
Timber & Sugar Cane Plantations - immature 29 525 23 935
Timber & Sugar Cane Plantations - mature 68 903 61 224
Total 98 428 85 159
The impact has been the restatement of earnings, after the effect of deferred
tax, in prior years (FY 2002: R1.9 million, FY 2001 and prior: R49.4 million).
3. Non-current assets
June 30, December 31,
2003 2002
(R"000) (R"000)
Property, plant and equipment
Balance as previously reported 80 975 85 468
Prior year adjustment (Impact of
accounting statement AC 137) 73 380 73 380
154 355 158 848
4. Comparative figures
When an accounting policy is changed or figures are reclassified,
comparative figures are restated accordingly.
COMMENTARY
As forewarned in our trading updates of 25 April and 22 July 2003, the results
for the six month period to June 2003 are substantially lower than for the
corresponding period in 2002. Before adjustments resulting from the application
of AC 137, Agriculture, the company incurred a trading loss of R0.157 million
for the period to 30 June 2003 (2002: R10.1 million profit).
In comparing the period"s results with those of 2002, the value of the Rand has
to be considered. At the end of June 2002, the Rand/US Dollar exchange rate was
R10.25, whereas at the end of June 2003 it was R7.49. Competitive pressures in
export markets have kept US Dollar prices at 2002 levels, while costs have moved
in line with domestic inflation. As a result, export margins have been
substantially reduced.
The stronger Rand has also influenced our pricing strategy in the domestic
market in order to compete against cheap imported products.
The operating divisions of the company continue to focus on superior performance
and cost reduction. Environmental and quality performance has been enhanced by
the achievement of FSC certification and ISO 9002.
The second half of the year should show some improvement due to seasonal demand
for the company"s products.
The impact of adopting accounting statement AC 137 has had the effect of
notionally enhancing operating profit in the current period by R13.2 million
(2002: R2.8 million). We do not expect a further enhancement during the second
half of the year.
The Directors have not declared a dividend for the period.
For and on behalf of the Board
MJ Slater DS Cooper
Managing Director Financial Director
September 9, 2003
DIRECTORS: AH Wilson (Chairman), MJ Slater **(Managing),
PA Bernards***, WP Coetzee, DS Cooper, DG Ellis*,
JU Morrison*, KMP Spencer, RV Tubbesing*, AG Venton
*USA ** British ***Canadian
Company Secretary: B van Maarseveen
Investment Bank and Sponsor: Nedbank Corporate
TRANSFER SECRETARIES: Computershare Limited
PO Box 61051, Marshalltown, 2107
70 Marshall Street, Johannesburg, 2001,
Republic of South Africa
Telephone (011) 370 5000
MASONITE (AFRICA) LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1942/015502/06)
Share code: MAS ISIN: ZAE000004289
("Masonite" or "the company")
Date: 09/09/2003 04:48:24 PM Produced by the JSE SENS Department
