| Mon 29 Sep 2003, 18:04 | | Interim Report for Six months ended 30 June 2003 |
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The Cementation Company (africa) Limited - Interim Report For The Six Months
Release Date: 29/09/2003 17:46:11 Code(s): CMT CMTP
The Cementation Company (Africa) Limited - Interim Report for the Six Months
ended 30 June 2003
The Cementation Company (Africa) Limited
(Incorporated in the Republic of South Africa)
(Registration number 1926/008840/06)
Share code CMT/CMTP
ISIN ZAE000001582 / ZAE000001590
("the company" or "the Group")
INTERIM REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2003
ABRIDGED CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
six months six months year
to 30 June to 30 June to 31 December
2003 2002 2002
R"000 R"000 R"000
Turnover 603 710 522 340 1 109 558
Cost of sales 571 528 493 160 1 044 921
Gross profit for period 32 182 29 180 64 637
Other operating (expense)/income (53) 2 090 6 381
Mining and Construction (621) 2 090 5 630
Property 568 - 751
Admistrative expenses (14 696) (12 112) (31 655)
Mining and Construction (14 129) (11 224) (28 580)
Property (567) (888) (3 075)
Net profit from operations 17 433 19 158 39 363
Mining and Construction 17 432 20 046 41 677
Property 1 (888) (2 314)
Net finance (cost)/income (1 463) 318 1 232
Net profit before taxation 15 970 19 476 40 595
Taxation (4 816) (6 264) (13 363)
Net profit for period 11 154 13 212 27 232
CONSOLIDATED CASH FLOW STATEMENT
Cash flows from operating activities (67 680) (4 530) 32 296
Cash flows from investing activities (21 662) (16 343) (63 502)
Cash flows from financing activities 4 900 (1 124) 3 181
Net change in cash and cash
equivalents (84 442) (21 997) (28 025)
Cash and cash equivalents at beginning
of period 43 183 71 208 71 208
Cash and cash equivalents at end of
period (41 259) 49 211 43 183
Number of ordinary shares in
issue ("000) 18 952 8 955 18 952
Net asset value per ordinary
share (cents) 487,4 434,2 428,6
Net asset value per ordinary share
- fully diluted (cents) 487,4 358,4 428,6
Attributable earnings per ordinary
share (cents) 58,8 147,5 195,0
Attributable earnings per ordinary share
- fully diluted (cents) 58,8 69,7 151,6
Headline earnings per ordinary share
- before exceptional items (cents) 58,8 147,5 190,0
Headline earnings per ordinary share
- fully diluted before exceptional
items (cents) 58,8 69,7 147,8
Dividends per ordinary share
- no dividend declared
Capital expenditure 22 362 16 343 66 616
Depreciation 20 279 25 625 45 174
Capital expenditure committed or
authorised 35 941 19 997 58 303
CONSOLIDATED BALANCE SHEET
30 June 30 June 31 December
2003 2002 2002
R"000 R"000 R"000
ASSETS
Non-current assets 95 306 69 568 93 923
Tangible assets 95 306 63 851 93 923
Deferred taxation - 5 717 -
Current assets 230 183 133 109 271 913
Inventories 25 605 29 525 24 722
Trade and other receivables 204 578 53 979 201 025
Cash and cash equivalents - 49 605 46 166
Total assets 325 489 202 677 365 836
EQUITY AND LIABILITIES
Capital and reserves 92 678 67 928 81 533
Ordinary share capital and premium 40 076 11 328 40 076
Cumulative preference share capital
and premium 300 29 048 300
Non-distributable reserves 3 424 4 553 3 424
Accumulated profit 48 878 22 999 37 733
Non-current liabilities 10 779 254 5 879
Interest-bearing borrowings 9 205 - 4 305
Deferred taxation 1 574 254 1 574
Current liabilities 222 032 134 495 278 424
Trade and other payables 178 379 129 450 265 449
Provisions 2 394 1 141 9 992
Short-term borrowings 41 259 3 904 2 983
Total equity and liabilities 325 489 202 677 365 836
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Ordinary Preference Non- share share Share distributable Accumulated
capital capital premium reserves profit/(loss) Total
R"000 R"000 R"000 R"000 R"000 R"000
Balance at 30 June 2002 4 478 5 298 30 600 4 553 22 999 67 928
Conversion of preference
shares 4 998 (4 998) -
Net profit for period 14 020 14 020
Realisation of non-
distributable reserves (406) (406)
Transfer to accumulated
profits (723) 723 -
Preference dividends (9) (9)
Balance at
31 December 2002 9 476 300 30 600 3 424 37 733 81 533
Net profit for period 11 154 11 154
Preference dividends (9) (9)
Balance at
30 June 2003 9 476 300 30 600 3 424 48 878 92 678
ACCOUNTING POLICIES
The financial statements are prepared on the historical cost basis and in
accordance with South African Statements of Generally Accepted Accounting
Practice. The accounting policies are, in all material respects, consistent
with the annual financial statements for the year ended 31 December 2002.
COMMENT
Group results
The board is pleased to again report a positive return for the first half of
the year. Turnover for the Group grew 15,6% against the comparative period and
2,8% on the six months to 31 December 2002. As a result of operational
difficulties on some contracts, Group operating margins declined from 3,6% to
2,9%. These losses have now been arrested.
Borrowings increased from December, affected by unforeseeable delays in the
finalisation of increased guarantee facilities. This impacted on finance costs,
but has now been resolved and an improvement in borrowing levels is anticipated.
Our clients are suffering from the strength of the Rand and this is permeating
through all aspects of the mining industry.
Outlook and prospects
The Group has undergone substantial growth over the past three years and, while
it continues to achieve success obtaining new work, the focus is now on a period
of consolidation and improvement of earnings through operational efficiency and
improved levels of service to our existing clients. The board considers that the
benefit of this will not be fully realised until 2004.
The order book has been maintained year-on-year at R1,77 billion.
DIVIDENDS
Preference
Notice is hereby given that the board has declared the following preference
dividend to be paid on Monday, 27 October 2003:
Dividend number 64 of 6 cents per 6% cumulative preference share, for the six
months ended 30 June 2003.
To comply with the procedures of STRATE, the last day to trade in the shares for
the purposes of the dividend is Friday, 17 October 2003. The shares will
commence trading ex-dividend from Monday, 20 October 2003 and the record date
will be Friday, 24 October 2003.
Share certificates may not be dematerialised or rematerialised between Monday,
20 October 2003 and Friday, 24 October 2003, both days inclusive.
Ordinary
The directors have agreed not to declare an ordinary dividend. The board
continues to review the dividend policy on a regular basis.
DIRECTORATE
There were no changes to the directorate during the period under review.
For and on behalf of the board
S Keeble (Chairman)
A A B Douglas (Chief Executive Officer)
29 September 2003
Executive directors: A A B Douglas, B J Hancock
Non-executive directors: S Keeble, D G Fison, G Hancock
Independent non-executive directors: T J Motlatsi, B R van Rooyen
Company Secretary: B J Hancock
Date: 29/09/2003 05:46:16 PM
Produced by the JSE SENS Department
