| Mon 22 Sep 2003, 17:09 | | Concor Limited - Preliminary Report For The Year E |
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Concor Limited - Preliminary Report For The Year Ended 30 June 2003
Release Date: 22/09/2003 17:04:28 Code(s): CNC
CONCOR LIMITED - PRELIMINARY REPORT FOR THE YEAR ENDED 30 JUNE 2003
Concor Limited
(Registration number 1969/003076/06)
(Incorporated in the Republic of South Africa)
Share code: CNC ISIN no: ZAE0000016616
Maintaining a strong cash flow
Record capex
Earnings per share 157 cents
Dividends per share 30 cents
Earnings per share up 32%
PRELIMINARY REPORT FOR THE YEAR ENDED 30 JUNE 2003
Summarised consolidated income statement
Audited Audited
year ended year ended
30 June 2003 30 June 2002
R"000 R"000
Revenue 1 402 718 1 279 572
Operating income before depreciation 73 204 56 933
Depreciation (50 089) (32 652)
Operating income from operations
before interest 23 115 24 281
Interest received 27 753 16 177
Interest paid (16 638) (13 763)
Income before taxation 34 230 26 695
Taxation (12 960) (9 170)
Income after taxation 21 270 17 525
Associates" losses after tax (325) (1 999)
Outside shareholders" interest - 348
Earnings attributable to ordinary
shareholders 20 945 15 874
Headline earnings attributable to
ordinary shareholders 20 945 15 874
Number of shares in issue 13 347 594 13 347 594
Earnings per share (cents) 156,9 118,9
Headline earnings per share (cents) 156,9 118,9
Dividend per share (cents) 30,0 30,0
Statement of changes in equity
Audited Restated
year ended Audited
30 June 2003 30 June 2002
R"000 R"000
Ordinary share capital
Opening and closing balance 6 674 6 674
Share premium
Opening and closing balance 51 640 51 640
Non-distributable reserve
Opening balance 1 701 -
Foreign currency translation reserve (3 072) 1 701
Closing balance (1 371) 1 701
Distributable reserve
Opening balance as previously
reported 104 307 88 433
Change in accounting policy 3 049 -
Restated opening balance 107 356 88 433
Earnings attributable to ordinary
shareholders 20 945 15 874
Dividend paid (4 009) -
Closing balance 124 292 104 307
Shareholders" equity 181 235 164 322
Summarised consolidated balance sheet
Restated
Audited Audited
30 June 2003 30 June 2002
R"000 R"000
Fixed assets 134 436 107 427
Unlisted investments 41 199 34 443
Deferred tax asset 29 512 12 753
Current assets 587 273 621 784
Deposits and cash 240 761 268 722
Other current assets 346 512 353 062
Total assets 792 420 776 407
Shareholders" equity 181 235 167 371
Outside shareholders" interest 18 18
Interest bearing debt 58 095 41 859
Current liabilities 553 072 567 159
Total equity and liabilities 792 420 776 407
Net asset value per share (Rand) 13,58 12,54
Gearing 32% 25%
Capital expenditure (R"000) 80 144 64 113
Capital commitments (R"000) 28 804 34 730
Segmental information
Year Year
ended ended
30 June 30 June
2003 2002
% R"000 % R"000
Turnover
Construction 81 1 132 404 82 1 040 847
Manufacturing 19 266 704 18 235 084
Discontinuing operations 0 3 610 0 3 641
100 1 402 718 100 1 279 572
Income before taxation
including associates
Construction 67 22 817 142 34 970
Manufacturing 47 15 751 21 5 332
Discontinuing operations (14) (4 663) (63) (15 606)
100 33 905 100 24 696
Geographical turnover
Republic of South Africa 84 1 174 466 80 1 018 746
Rest of Africa 16 228 252 20 260 826
100 1 402 718 100 1 279 572
Abridged cash flow statement
Audited Restated
year ended Audited
30 June 2003 30 June 2002
R"000 R"000
Operating activities
Cash receipts from customers 1 376 463 1 289 209
Cash paid to suppliers 1 342 782 1 054 011
Cash generated by operations 33 681 235 198
Net interest received 11 115 2 414
Dividends received 4 26
Dividends paid (4 009) -
Taxation paid (9 851) (8 670)
Cash inflow from operating
activities 30 940 228 968
Investment activities (75 137) (47 811)
Acquisition of fixed assets (80 144) (64 113)
Proceeds on disposal of associates 1 100 20 402
Proceeds on disposal of fixed
assets 10 714 5 736
Unlisted investments (6 807) (9 836)
Net cash (utilised)/generated (44 197) 181 157
Financing activities 16 236 (16 756)
Long-term liabilities
(repaid)/raised (1 370) 10 646
Short-term loans raised/(repaid) 17 606 (27 402)
(Decrease)/Increase in deposits
and cash (27 961) 164 401
Notes
1. Compliance with GAAP
These preliminary results have been compiled in accordance with South African
Statements of Generally Accepted Accounting Practice, and the listing
requirements of the JSE Securities Exchange in South Africa.
2. Accounting policies
The same accounting policies and methods of computation have been used in the
preparation of these preliminary financial statements as were used in the annual
financial statements to 30 June 2002, except for the adoption of AC133,
Financial Instruments: Recognition and measurement, where investments held for
resale have been restated to market value at 30 June 2002 and 30 June 2003
respectively. The effect of this change in the basis of accounting has been to
increase distributable reserves at 30 June 2002 by R3 049 000 and current
earnings before tax by R1 550 000.
3. Audit opinion
The results for the year ended 30 June 2003 have been audited by KPMG Inc.
Their unqualified opinion is available for inspection at the company"s
registered office.
COMMENTS
The Group has increased earnings attributable to its shareholders by 32% in the
year under review. The Group is well positioned in a number of areas and is
cautiously optimistic for the year ahead.
OPERATIONAL REVIEW
A number of major contracts were secured, which enabled the Group to acquire new
plant and equipment, recruit and train staff, implement new systems and build
the resource and organisational capacity of the Group.
The Technicrete Division implemented a functional based organisational
structure, which contributed to an improved focus on sales, manufacturing and
product development. This, together with stable market conditions in both mining
and commercial markets resulted in a significant improvement over budget.
The Civils Division"s loss making operations in Mozambique were closed during
the year and the remaining contracts transferred to the Building Division.
Projects in Zambia and South Africa did well, but overall mainly due to the
Mozambique operations, the division ended the year with a loss.
In spite of a difficult environment, the Building Division has performed well
and improved on last year"s result. We are well advanced with the USHAKA Theme
park in Durban.
The Roads Division was active in Mozambique, Zambia, Botswana and South Africa.
A substantial loss was incurred on a contract in Botswana; it is fully provided
for and is due for completion in October 2003. Measures have been introduced to
manage more effectively the logistical risks associated with road contracts
beyond our borders. The Bakwena Toll Road is due for completion in October 2004
and is ahead of programme.
The Engineering Division recovered well from the setback on a contract in
Polokwane during the first half of the year. Workload remains low due to
cutbacks on capital expenditure by the mining industry.
Both the Underground and Opencast Mining are involved in long-term mining
contracts; good progress has been made to improve safety and efficiency. Both
divisions improved on budget and tabled excellent results for the year.
The Facility Management Division achieved financial closure of the Chapman"s
Peak concession contract. Construction is progressing well and the toll road is
scheduled to open in December 2003. During the year, 50% of the Cape Point
concession was sold to an empowerment group.
The Group has a small and limited property portfolio, which will be sold when a
suitable buyer can be secured.
The Ngqura Harbour Project in joint venture with Hochtief and empowerment
partners is progressing well and is scheduled for completion in October 2005.
This is truly an international project of huge proportions of which South Africa
can be proud. Hochtief is playing an invaluable role as project leader.
CASH FLOW AND WORKING CAPITAL
Capital expenditure for the year amounted to a record R80 million, which
resulted in an increase in asset based interest-bearing debt to R58 million.
Deposits and cash reduced by R28 million to R241 million mainly due to capital
expenditure and the reduction of advanced payments received on contracts.
PROSPECTS
The prospects for the year ahead for the building and construction sector appear
to the directors to be reasonably positive. Our mining clients are investing in
new facilities; the public sector is providing funds for new roads, harbours,
airports and other infrastructure. A number of opportunities exist in the SADC
region. Each division is firmly focused on exceeding its client"s expectations
and through the Group"s multi-disciplinary capacity can clearly add value.
As a whole Concor is well positioned to respond to an improved economic
environment and have the teams and capacity to provide our clients" with
superior service.
DIVIDEND
Notice is hereby given that the board has maintained the dividend of last year
and declared a final dividend of 30c (cents) per ordinary share for the year to
30 June 2003. The dividend will be payable on Monday 27 October 2003.
In terms of the requirements of STRATE the last day to trade cum dividend will
be Friday, 17 October 2003. The shares will trade ex dividend as from Monday, 20
October 2003. The record date is Friday, 24 October 2003.
Share certificates may not be dematerialised or rematerialised between Monday,
20 October 2003 and Friday, 24 October 2003, both dates inclusive.
On behalf of the board
J V WILLMOTT F W KELLER
Chief Executive Chairman
22 September 2003
Directors: F W Keller (Chairman), J V Willmott (Chief Executive Officer), A J
Bester, C Sevillano-Barredo, M Lommatzsch
Secretary: R C Davies
Registered office: Concor House, 13 Church Street Ext., Crown Industria,
Johannesburg 2001 (PO Box 8259, Johannesburg 2000)
Transfer secretaries: Computershare Limited, 70 Marshall Street, Johannesburg
2001 (PO Box 61051, Marshalltown, 2107)
Sponsor: Investec Bank Limited
