| Tue 28 Oct 2003, 13:08 | | UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGU |
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Astrapak - UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 AUGUST 2003
Astrapak Limited ("Astrapak" or "the Group")
ISIN: ZAE000030938
JSE Share code APK:
UNAUDITED RESULTS
FOR THE SIX MONTHS ENDED 31 AUGUST 2003
* Revenue up 7.8%
* Income before interest, taxation,
depreciation and amortisation up 13.3%
* Net debt down 18.2%equity ratio down to
74.2%
* Headline earnings per share up 20.2%
Actual Actual
(R "000) 2003 2002
Revenue 685,451 635,692
Cost of sales 472,377 445,183
Gross profit 213,074 190,509
Net operating expenses 103,704 93,956
Income before interest, taxation, 109,370 96,553
depreciation and amortisation
Depreciation 35,411 30,529
Amortisation of goodwill 1,915 1,792
Operating income before interest and 72,044 64,232
taxation
Exceptional item (1) 1,269 -
Net interest paid 24,690 22,490
Income before debenture interest 48,623 41,742
Debenture interest 3,915 3,671
Income before taxation 44,708 38,071
Taxation 8,845 7,511
Income after taxation 35,863 30,560
Share of associates net income after 795 1,187
taxation
Income attributable to minority 4,326 4,935
shareholders
Attributable income 32,332 26,812
Headline income 38,087 31,686
(1) Exceptional item
The exceptional item represents the net
gain from the insurance claim relating to
the fire that occurred at
Cinqplast Plastop (Proprietary) Limited -
Bronkhorstspruit on the 1st of August
2003.
Earnings per linked unit (cents) 37.9 31.8
Attributable income (cents) 33.8 28.0
Debenture interest (cents) 4.1 3.8
Headline earnings per linked unit (cents) 39.8 33.1
Headline income (cents) 35.7 29.3
Debenture interest (cents) 4.1 3.8
Headline earnings per linked unit - fully 36.0 30.3
diluted (cents)
Headline income (cents) 31.9 26.5
Debenture interest (cents) 4.1 3.8
Number of linked units in issue (000"s) 95,608 95,608
Number of linked units in issue - fully 105,776 105,776
diluted (000"s)
Reconciliation between attributable
income and headline income
Attributable income 32,332 26,812
Debenture interest 3,915 3,671
Amortisation of goodwill 1,915 1,792
Net profit after tax on disposal of (75) (589)
property, plant and equipment
Net profit on disposal of property, plant (107) (841)
and equipment
Taxation 32 252
Headline income 38,087 31,686
CONSOLIDATED BALANCE SHEETS
Actual Actual
(R "000) 2003 2002
Assets
Non-current assets 450,166 410,395
Property, plant and equipment 392,821 357,927
Deferred taxation 20,031 14,718
Goodwill 30,444 31,730
Loans and investments 6,870 6,020
Currents assets 440,626 448,971
Inventories 129,471 154,487
Trade and other receivables 216,547 211,922
Cash resources 94,608 82,562
Total assets 890,792 859,366
Equity and liabilities
Equity 275,495 216,524
Share capital 108 108
Retained income 245,915 184,937
Non-distributable reserves 4,679 6,016
Debentures 47,804 47,804
Treasury shares (23,011) (22,341)
Minority interest 48,607 45,050
Non-current liabilities 226,017 253,914
Long term interest-bearing debt 197,178 227,905
Deferred taxation 28,839 26,009
Current liabilities 340,673 343,878
Trade and other payables 234,921 243,854
Linked unitholders for debenture interest 3,915 3,671
Short term interest-bearing debt 101,837 96,353
Total equity and liabilities 890,792 859,366
Additional information
Capital expenditure (R "000) 45,099 46,778
Capital commitments (R" 000)
- contracted not spent 6,174 15,808
- authorised not contracted 4,128 1,165
Net asset value per linked unit (cents) 288 226
Net tangible asset value per linked unit 256 193
(cents)
Net interest bearing debt as a percentage 74 112
of equity (%)
Net interest bearing debt (R "000) 204,407 241,696
Long term interest-bearing debt 197,178 227,905
Short term interest-bearing debt 101,837 96,353
Cash resources (94,608) (82,562)
ABRIDGED CONSOLIDATED CASH FLOW
STATEMENTS
Actual Actual
(R "000) 2003 2002
Cash generated from operations 110,425 94,860
Reduction in working capital 27,323 15,767
Non cash transactions - profit on 107 846
disposal of assets
Net financing costs and taxation paid (30,843) (32,680)
Net cash inflow before distribution to 107,012 78,793
linked unitholders
Interest and dividend distribution to (11,149) (11,049)
linked unitholders
Net cash inflow from operating activities 95,863 67,744
Capital expenditure (45,099) (46,778)
Acquisition of subsidiaries and minority (3,947) (165,453)
interests
Proceeds on the disposal of assets 4,228 1,816
Cash outflow from investing activities (44,818) (210,415)
Net cash (outflow) / inflow from (13,060) 125,254
financing activities
Net increase / (decrease) in cash 37,985 (17,417)
equivalents
STATEMENT OF CHANGES IN EQUITY
Actual Actual
(R "000) 2003 2002
Equity as at 1 March 247,273 193,822
Equity as previously reported 248,681 200,052
Financial instruments : recognition and (1,408) -
measurement (AC133)
Depreciation of investment properties (AC - (6,230)
135)
Attributable income 32,332 26,812
Transfer to deferred tax asset (668) (668)
Ordinary dividends paid to linked (3,442) (3,442)
unitholders
Equity as at 31 August 275,495 216,524
SEGMENTAL ANALYSIS
(R "000) Films Rigids Flexibles Group
Revenue - 2003 290,159 275,624 119,668 685,451
Revenue - 2002 266,995 252,845 115,852 635,692
Operating income before 24,396 35,768 11,880 72,044
interest and taxation - 2003
Operating income before 20,436 26,698 17,098 64,232
interest and taxation - 2002
Depreciation - 2003 11,387 18,494 5,530 35,411
Depreciation - 2002 10,425 16,450 3,654 30,529
Capital expenditure - 2003 9,527 23,859 11,713 45,099
Capital expenditure - 2002 6,766 22,114 17,898 46,778
Total assets - 2003 349,310 385,933 155,549 890,792
Total assets - 2002 342,001 361,607 155,758 859,366
Total liabilities - 2003 190,259 270,805 105,626 566,690
Total liabilites - 2002 202,412 296,725 98,655 597,792
GROUP PROFILE
Astrapak Limited ("Astrapak" or "the Group") manufactures and supplies a wide
range of plastic packaging products from sophisticated flexible packaging to
specialised rigid containers.
The Group has manufacturing facilities in all the main centres of South Africa
and a joint venture in Mauritius. The operations are grouped into three
divisions, namely Films, Rigids and Flexibles and supplies the food, beverage,
confectionery, agricultural, consumer, cosmetic, personal care, petrochemical,
pharmaceutical, textile and industrial markets.
Astrapak has, since inception, invested in businesses that are market leaders or
have significant technological advantages to exploit the global move towards
plastic packaging. The Group focuses on service, innovation and technology in
order to achieve superior returns and growth in earnings for linked unitholders.
MESSAGE TO LINKED UNITHOLDERS
Astrapak remains focused on exploiting the innovation-led growth in plastic
packaging, which it believes will continue to gain an increasing share of the
packaging market. The Group plans to expand through continued organic and
acquisitive growth as well as through the implementation of new and
opportunistic business initiatives.
On the evening of the 1st of August 2003 a fire caused extensive damage to the
finished goods and to a lesser extent the production areas of Cinqplast Plastops
- Bronkhorstspruit, a plant in the Rigids division of the Group. In response
the management team secured an adjacent factory, equipment and services.
Employees and contractors worked around the clock to resume production within
days of the fire. Insurers have agreed to pay out under the insurance policies
and have made an interim payment in respect thereof. Consequently, the results
for the period under review have been affected by a loss of turnover, a
reduction in inventory and fixed assets written off. The increased cost of
workings, write-off of inventory and fixed assets are included in trade and
other receivables (insurance) as being fully recoverable. The recognition of a
loss of profit claim has been shown as an exceptional item in the income
statement. We believe that due to the swift action taken to resume production,
co-operation from Insurers" and constant communication with customers, Astrapak
expects to incur limited net financial loss.
Trading conditions since February 2003 have seen an overall reduction in input
costs on account of lower oil prices and the strengthening Rand. The local
economy has been steady in most areas serviced by Astrapak. However, the strong
Rand has impacted negatively on the performance of the Flexibles and Rigids
division where indirect exports have reduced considerably.
FINANCIAL RESULTS
The Group achieved growth in turnover of 7,8%, representing real volume growth
of 4,5% and price increases of 3.3% (overhead recovery offset by raw material
price reductions).
Coupled with tight control of overheads, improved production efficiencies and
extraction of Group synergies Astrapak has managed to improve operating margins
from 10.1% to 10.5%, reporting a 13.3% increase in income before interest,
taxation, depreciation and amortisation.
Cash flow from operating activities of approximately R96 million (R68 million)
was principally applied to the Group"s capital expenditure and expansion
programs and the reduction of debt levels. Net debt decreased by R37.5 million
to R204.4 million (R241.7 million). The Group"s debt equity ratio is 74.2%
compared to 111.6% in the comparative period.
Income amounting to R1,3m has been included in the income statement as an
exceptional item and relates to a loss of profit claim for the month of August
linked to the fire.
Net interest paid increased by 9,8% due to higher average interest rates in the
reporting period together with higher levels of net debt.
An effective taxation rate of 19,9% (19,7%) was achieved due to the utilisation
of government incentives and tax losses.
Headline earnings per linked unit increased by 20,2% to39.8 cents (33.1 cents).
PROSPECTS
The markets serviced by Astrapak are expected to remain steady for the balance
of the year.
JSE SECURITIES EXCHANGE SOUTH AFRICA ("JSE") REQUIREMENTS
The directors of the company ensured compliance with the requirements of the JSE
Listing Requirements during the six months under review.
BASIS OF ACCOUNTING
These consolidated results for the six months were drawn up in compliance with
South African Statements of Generally Accepted Accounting Practice and the
company has complied with the requirements of the Companies Act 1973 (Act 61 of
1973) as amended.
ACCOUNTING POLICIES
The accounting policies as set out in the 2003 annual report have been
consistently applied in producing these results, except for a change in
accounting policy as detailed below.
During the period the Group changed its accounting policy in respect of
financial instruments in order to comply with AC133 Financial Instruments:
recognition and measurement. Accordingly an adjustment has been made to the
Group"s reserves at the beginning of the period and no adjustments have been
made to prior year"s results.
DISTRIBUTION TO LINKED UNITHOLDERS
A provision for debenture interest of R3.9 million has been made which
approximates the average prime rate of interest for the six months ended 31
August 2003. Debenture interest for the full year ended 29 February 2004 will be
declared and payable in May 2004.
CHANGES TO THE BOARD OF DIRECTORS
The following appointment was made and resignation accepted:
Appointment:
Mr P C Botha on 23 September 2003.
Resignation:
Mr W F Hirzebruch on 11 July 2003.
ACKNOWLEDGEMENTS
The Board would like to express its appreciation to management and staff for
their efforts during the six months, which has been a significant factor in the
successful results achieved by the Group.
For and on behalf of the Board
R Crewe-Brown H A Todd
(Chief Executive Officer) (Financial Director)
Sandton
28 October 2003
Date: 28/10/2003 01:00:09 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
