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Putco Properties Limited - Audited Results For The Year Ended 30 June 2003.
Release Date: 26/09/2003 17:39:41 Code(s): PPR
PUTCO PROPERTIES LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2003.
Putco Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 1988/001085/06)
Share code: PPR ISIN: ZAE000005567
("Putprop")
Audited results for the year ended 30 June 2003.
INCOME STATEMENTS
for the year ended 30 June 2003
Group Company
2003 2002 2003 2002
R"000 R"000 R"000 R"000
Rent received 29 084 28 380 29 084 27 238
Interest received 2 476 1 534 2 476 1 611
Investment income - - 12 530 -
Revenue 31 560 29 914 44 090 28 849
Operating expenses 7 787 2 284 7 777 1 775
Profit before finance costs 23 773 27 630 36 313 27 074
Finance cost 61 2 59 2
Profit before taxation 23 712 27 628 36 254 27 072
Taxation 11 684 11 715 11 684 11 411
Net profit for year 12 028 15 913 24 570 15 661
Earnings per share (cents) 41,8 55,3
Headline earnings per
share (cents) 64,4 56,3
Dividend per share (cents) 55,0 96,0
- interim paid - April 2003/(2002) 25,0 70,0
- final paid - October 2002/(2001) 30,0 26,0
- final declared - October 2003 30,0
Reconciliation of headline earnings
Net profit for the year 12 028 15 913
(Profit)/loss on sale of
investment properties (199) 290
Fair value adjustments on
investment properties 6 703 -
Headline earnings 18 532 16 203
BALANCE SHEETS
at 30 June 2003
Group Company
2003 2002 2003 2002
R"000 R"000 R"000 R"000
ASSETS
Non-current assets
Tangible assets 90 900 106 953 90 900 106 953
Investment in subsidiaries - - 73 1 696
90 900 106 953 90 973 108 649
Current assets
Accounts receivable 6 406 379 6 274 250
Amounts owing by subsidiary - - 66 -
Cash and cash equivalents 23 976 15 744 23 976 15 744
30 382 16 123 30 316 15 994
Total assets 121 282 123 076 121 289 124 643
EQUITY AND LIABILITIES
Capital and reserves
Stated capital 4 146 4 146 4 146 4 146
Non-distributable reserves - - - 1 623
Distributable reserves 111 873 115 681 111 877 103 143
116 019 119 827 116 023 108 912
Non-current liabilities
Deferred taxation 646 622 646 622
646 622 646 622
Current liabilities
Taxation payable 1 256 2 096 1 267 2 100
Accounts payable 3 361 531 3 353 520
Amounts owing to subsidiary - 12 489
4 617 2 627 4 620 15 109
Total equity and liabilities 121 282 123 076 121 289 124 643
STATEMENTS OF CHANGES IN EQUITY
at 30 June 2003
Non
distri- Distri-
Stated butable butable
Capital reserves reserves Total
R"000 R"000 R"000 R"000
GROUP
Balance at 30 June 2001 4 146 - 125 574 129 720
Fair value adjustment of
investment properties 1 835 1 835
Balance at 30 June 2001
restated 4 146 - 127 409 131 555
Net profit for the year 15 913 15 913
Dividends paid (27 641) (27 641)
Balance at 30 June 2002 4 146 - 115 681 119 827
Net profit for the year 12 028 12 028
Dividends paid (15 836) (15 836)
Balance at 30 June 2003 4 146 - 111 873 116 019
COMPANY
Balance at 30 June 2001 4 146 1 623 109 359 115 128
Fair value adjustment of
investment properties 5 764 5 764
Balance at 30 June 2001
restated 4 146 1 623 115 123 120 892
Net profit for the year 15 661 15 661
Dividends paid (27 641) (27 641)
Balance at 30 June 2002 4 146 1 623 103 143 108 912
Net profit for the year 24 570 24 570
Reversal of NDR (1 623) (1 623)
Dividends paid (15 836) (15 836)
Balance at 30 June 2003 4 146 - 111 877 116 023
CASH FLOW STATEMENTS
for the year to 30 June 2003
Group Company
2003 2002 2003 2002
R"000 R"000 R"000 R"000
Cash (outflow)/inflow from
operating activities (1 317) (9 345) 11 238 (9 626)
Cash receipts from customers 29 084 28 380 29 084 27 238
Cash paid to suppliers (4 480) (182) (4 464) 104
Net cash generated from
operations 24 604 28 198 24 620 27 342
Interest received 2 476 1 534 2 476 1 611
Investment income - - 12 530 -
Finance costs (61) (2) (59) (2)
Taxation paid (12 500) (11 434) (12 493) (10 936)
Dividend paid (15 836) (27 641) (15 836) (27 641)
Cash inflow/(outflow) from
investment activities 9 549 13 769 (3 006) 14 050
Proceeds on disposal of properties 9 629 15 566 9 629 3 572
Additions to tangible assets (80) (1 797) (80) (1 797)
(Decrease)/increase in investment
in subsidiary (12 555) 12 275
Net increase in cash and cash
equivalents 8 232 4 424 8 232 4 424
Cash and cash equivalents at
beginning of year 15 744 11 320 15 744 11 320
Cash and cash equivalents at
end of year 23 976 15 744 23 976 15 744
CHAIRMAN"S STATEMENT
OVERVIEW
Gross rentals increased by 2%, from R 28,4 million to R29,1 million, compared
to the same period last year. The annual increase in rentals is 9%. The reason
for the lower increase in gross rentals was brought about by the loss of rental
from the sale of our Prospecton property, in KwaZulu Natal, last year (5%), and
the non-escalation of rentals for the unoccupied premises; Boksburg, Lea Glen
Stores, Wembly and Garthdale (2%), as previously reported.
The following transactions were concluded during the financial year.
We realised an amount of R9,6 million, excluding VAT, on the disposal of our
Wynberg and Baragwanath properties. An agreement has been entered into for the
sale of our Boksburg property, the transfer of which is imminent. The sale of
our Baragwanath and Boksburg properties could result in a decrease in our rental
income in the next financial year, unless substitute rental-bearing property has
been acquired.
The maintenance expenditure on our properties amounted to R0,26 million,
which was in line with the amount estimated in our interim statement.
Cost of operating increased from R2,3 million to R7,8 million. Included in the
R7,8 million is an amount of R6,7 million being a downward adjustment to fair
value on our properties. R1,7 million of the adjustment was already taken into
account in our interim results. Excluding the above, the costs of operating
decreased from R2,3 million to R1,1 million year-on-year.
Profit before taxation was R23,7 million (2002: R27,6 million). After applying
STC on dividends the net profit after tax was R12,0 million
(2002: R15,9 million).
Interest received increased from R1,5 million to R2,5 million as a result of
more effective cash management in which a higher interest rate was received
until the financial year end, thus avoiding expected interest rate declines in
the latter part of the year. This, coupled with increased cash resources, due to
property sales has led to a much improved cash position at the end of the year.
Cash and cash equivalents as at the end of the financial year was R24,0 million
(2002: R15,7 million). Accounts receivable was R6,4 million (2002: R0,4
million).
Valuations of property
The properties were revalued on 30 June 2003 by a registered valuator,
P. Randal-Smith. The report was used to adjust property values as required by
"AC 135 - Investment Property".
The assessment indicated a write down in fair value of R6,7 million which was
accounted for in the income statement.
Loans
Your company has no loans.
Capital commitments
The Group has no capital commitments at year-end (2002: nil).
Future prospects
We are continuing with our marketing efforts to find tenants for any vacant
premises, or alternatively, to find buyers.
As reported in the interim statement the directors stated that the time is
right to investigate diversification into other property development projects in
industrial, commercial and/or residential markets.
A plan has been developed, the aim of which is to grow Putco Properties into
a fully-fledged property investment company by acquiring quality, income-
producing retail and office parks throughout South Africa and at the same time
disposing of the currently owned properties that do not fall into the long-term
plans of Putco Limited. Developments into the middle/upper residential market
will also be considered. Our sound cash position will allow us to pursue our new
strategy.
Growth in distributable income will be a primary focus.
Dividend declaration
The directors have decided to declare a final dividend of 30 cents per share.
Including the interim dividend of 25 cents, the total for the year will be 55
cents (2002: 100 cents).
This dividend will be paid on 27 October 2003, to shareholders recorded in
the register on 24 October 2003.
Conclusion
I wish to thank my fellow directors and management for their contribution to
the year"s results.
A Carleo
(Chairman/CEO)
16 September 2003
NOTICE OF ANNUAL GENERAL MEETING
Notice is hereby given that the 16th annual general meeting of members of the
Company will be held at 12h30 on Tuesday, 25 November 2003, at the registered
office of the Company, "Mimosa Park", Mimosa Way, Gallo Manor, Sandton.
DIRECTORS" STATEMENT OF RESPONSIBILITY
for the year ended 30 June 2003
The directors are responsible for the preparation, integrity and fair
presentation of the annual financial statements of Putco Properties Limited. The
annual financial statements, presented on pages 10 to 21 have been prepared in
accordance with South African Statements of Generally Accepted Accounting
Practice and include amounts based on judgments and estimates made by
management. The directors also prepared the other information included in the
financial report and are responsible for both its accuracy and its consistency
with the group financial statements.
The going-concern basis has been adopted in preparing the financial
statements. The directors have no reason to believe that the company or the
group will not be going concerns in the foreseeable future, based on forecasts
and available cash resources. The viability of the company and the group are
supported by the financial statements.
The directors are satisfied that the group financial statements fairly
present the state of affairs of the group and that there was no material
breakdown in the system of internal control during the year.
The group financial statements have been audited by independent auditors,
Ernst & Young, who were given unrestricted access to all financial records and
related data, including minutes of all meetings of shareholders, the board of
directors and committees of the board. The directors believe that all
representations made to the independent auditors during their audit were valid
and appropriate. It is the responsibility of the auditors to report on the group
financial statements in conformity with South African Auditing Standards.
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF PUTCO PROPERTIES LIMITED
We have audited the annual financial statements and group annual financial
statements of Putco Properties Limited set out on pages 9 to
22 for the year ended 30 June 2003.
These financial statements are the responsibility of the company"s directors.
Our responsibility is to express our opinion on these financial statements based
on our audit.
Scope
We conducted our audit in accordance with South African Auditing Standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance that the financial statements are free of material misstatements.
An audit includes:
* examining, on a test basis, evidence supporting the amounts and disclosure in
the financial statements;
* assessing the accounting principles used and significant estimates made by
management; and
* evaluating the overall financial statements presentation.
We believe that our audit provides a reasonable basis for our opinion.
Audit opinion
In our opinion these financial statements fairly present in all material
respects the financial position of the company and of the group at 30 June 2003
and the results of their operations and cash flow information for the year then
ended in conformity with South African Statements of Generally Accepted
Accounting Practice and in the manner required by the Companies Act of 1973 in
South Africa.
Ernst & Young
Registered Accountants and Auditors
Chartered Accountants (SA)
Johannesburg
16 September 2003
DIVIDEND ANNOUNCEMENT
ORDINARY DIVIDEND NO 27
The board of directors has resolved to declare a final dividend of
30 cents per share to all ordinary shareholders. The dividend is declared out of
current year profits before tax of R23,7 million.
In compliance with the requirements of STRATE, the following dates are
applicable:
Last day to trade cum the dividend Friday, 17 October 2003
Date trading commences ex the dividend Monday, 20 October 2003
Record date Friday, 24 October 2003
Date of payment on Monday 27 October 2003
Share certificates may not be dematerialized or rematerialised between Monday,
20 October 2003 and Friday, 24 October 2003, both dates inclusive.
By order of the board
A S J Nel
Secretary
Johannesburg
26 September 2003
Registered Office: Transfer Secretaries:
Mimosa Park Computershare Limited
5 Mimosa Way 70 Marshall Street
Gallo Manor Johannesburg, 2001
Sandton, 2052 PO Box 61051
Marshalltown, 2107
