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Bearing Man Limited - Group Interim Report And Dividend Declaration For The Six
Months Ended 30 September 2003
Bearing Man Limited
Africa"s foremost distributor of dynamic engineering consumables
(Incorporated in the Republic of South Africa)
(Registration number 1955/002109/06)
Share code: BRM ISIN: ZAE000001137
("Bearing Man")
HIGHLIGHTS:
- Revenue +2%
- Operating profit +11%
- Profit before tax +19%
- Earnings +14%
GROUP INTERIM REPORT AND DIVIDEND DECLARATION FOR THE SIX MONTHS ENDED 30
SEPTEMBER 2003
Income Statement
Unaudited Audited
Six months ended Year ended
30 September Inc/ 31 March
2003 2002 (Dec) 2003
R000 R000 % R000
Revenue 498 130 488 975 2 1 001 787
Operating profit 73 165 65 983 11 168 112
Interest and foreign
exchange costs 11 852 14 309 (17) 28 173
Profit before taxation 61 313 51 674 19 139 939
Taxation 21 634 16 904 28 44 486
Earnings for the period 39 679 34 770 14 95 453
Determination of
headline earnings
Earnings 39 679 34 770 14 95 453
Adjustments - after tax
where applicable
- Amortisation of 150 150 300
goodwill
- Profit on disposal of (16) (85) (111)
property, plant and
equipment
Headline earnings 39 813 34 835 14 95 642
Shares in issue
Weighted average (000"s) 110 322 105 641 4 105 641
At end of period (000"s) 113 155 105 641 7 105 641
Weighted average
including diluted shares (000"s) 111 872 114 206 (2) 114 336
Earnings per share (cents) 36,0 32,9 9 90,4
Headline earnings per (cents) 36,1 33,0 9 90,5
share
Diluted headline
earnings per share (cents) 35,6 30,7 16 83,7
Diluted earnings per (cents) 35,5 30,7 16 83,5
share
Dividends per share
Interim (cents) 11,0* 11,0 - 11,0
Final (cents) - - - 25,0
*An interim dividend for the period ended 30 September 2003 of 11 cents per
share has been declared by the directors.
Balance Sheet
Unaudited Audited
30 September 31 March
2003 2002 2003
R000 R000 R000
ASSETS
Non-current 99 437 86 124 102 632
Property, plant and equipment 87 693 69 567 86 165
Intangible assets 2 025 2 391 2 199
Long-term receivable - 304 -
Staff incentive scheme loan 5 687 10 508 11 252
Deferred tax asset 4 032 3 354 3 016
Current 458 275 418 199 451 247
Inventories 323 452 287 611 304 943
Trade and other receivables 134 823 130 588 146 304
557 712 504 323 553 879
EQUITY AND LIABILITIES
Shareholders" interest 298 195 232 642 282 074
Non-current liabilities 9 318 12 732 12 120
Long-term borrowings 7 102 8 793 8 891
Debentures 2 216 3 939 3 229
Current liabilities 250 199 258 949 259 685
Bank overdrafts 70 764 57 482 37 986
Short-term borrowings 1 781 1 695 1 597
Trade and other payables 177 654 199 772 220 102
557 712 504 323 553 879
Debt: equity (%) 27,5 30,9 18,3
Net tangible asset value per (cents) 261,7 218,0 264,9
share
Net asset value per share (cents) 263,5 220,2 267,0
Cash Flow Statement
Unaudited Audited
Six months ended Year ended
30 September 31 March
2003 2002 2003
R000 R000 R000
CASH FLOWS FROM OPERATING ACTIVITIES
Operating activities 47 903 56 912 157 472
Interest and foreign exchange costs (11 852) (14 309) (28 003)
Taxation paid (38 632) (3 809) (34 775)
Dividends paid (26 410) (15 846) (27 467)
Net cash (outflow)/inflow from operating
activities (28 991) 22 948 67 227
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and
equipment to maintain operations (12 308) (18 499) (43 511)
Proceeds on disposal of property, plant
and equipment 2 723 2 590 3 600
Net repayment of non-current receivable - 134 438
Net cash outflow from investing
activities (9 585) (15 775) (39 473)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of unsecured loans (1 605) (1 406) (1 406)
Repayment from share trust 5 564 - -
Debenture - net transactions 1 839 - (1 085)
Net cash inflow/(outflow) from financing
activities 5 798 (1 406) (2 491)
NET (DECREASE)/INCREASE IN CASH AND
CASH EQUIVALENTS (32 778) 5 767 25 263
Cash and cash equivalents at beginning of
period (37 986) (63 249) (63 249)
Cash and cash equivalents at end of
period (70 764) (57 482) (37 986)
Changes in Equity Statement
Unaudited Audited
Six months ended Year ended
30 September 31 March
2003 2002 2003
R000 R000 R000
Stated capital
Balance at beginning of period 57 031 57 031 57 031
Issued during the period on conversion of
debentures 5 730 - -
Share issue expenses (20) - -
Balance at end of period 62 741 57 031 57 031
Debentures
Balance at beginning of period 5 686 4 272 4 272
Transfer from debenture liabilty portion
on conversion 1 721 - -
Converted into shares (5 730) - -
Redemption of debentures (263) - -
Issued during the period 1 414 1 044 1 414
Balance at end of period 2 828 5 316 5 686
Retained income
Balance at beginning of period 219 357 151 371 151 371
Earnings for the period 39 679 34 770 95 453
Dividends - prior year final (26 410) (15 846) (15 846)
- current year interim - - (11 621)
Balance at end of period 232 626 170 295 219 357
Total shareholders" interest 298 195 232 642 282 074
Comments
We are pleased to announce another solid performance for the six month period to
30 September 2003.
After the strong performance of the last financial year, the pace of increase
has slowed, mainly as a result of the Rand"s strength and the concomitant impact
on the economy. In the announcement of the 2003 year-end results we indicated
that we did not anticipate earnings to reach those of the 2003 year and budgeted
accordingly.
Financial Review
The increase in revenue was restricted to 2%, operating profit was 11% up at
R73,2 million and earnings for the period amounted to R39,7 million, an increase
of 14%. Earnings and headline earnings per share increased by 9% to 36,0 and
36,1 cents respectively.
During the period, 7,5 million shares were issued on conversion of convertible
debentures in terms of the staff incentive scheme, which reduced earnings per
share by 1,6 cents for this period.
Operational Review
Two further branches were opened during the period, one in South Africa and one
in Mozambique, increasing the number of trading outlets to 92 in Southern
Africa.
The Power Drives division performed exceptionally well during the period. In
particular the Fenner Motoline range of electric motors has grown strongly.
The Belting division benefited from increased unit sales.
The Bearings, Seals and Power Transmission divisions suffered from sustained
price pressures and were not able to offset the reduction in prices with
increased sales of product.
The Fasteners division commenced trading in the period.
Black Empowerment
The search for a black empowerment shareholder referred to in our Chairman"s
Statement in the annual report continues to receive our urgent attention.
Consultants have been appointed to manage the process. Progress has been made
and we are hopeful that a black empowerment partner will be in place by the end
of the financial year.
Accounting Policies
The principal accounting policies as outlined in the 2003 annual report, have
been consistently applied and comply with South African Statements of Generally
Accepted Accounting Practice.
Prospects
As highlighted in the Prospects Statement included in our annual report for the
year ended 31 March 2003, we anticipated that the substantial strengthening of
the Rand would have a negative impact on the markets that we serve. Whilst the
earnings for the first half have exceeded the corresponding prior period, we
still hold the view that earnings for the full year will not reach those
achieved in 2003.
For and on behalf of the board
DI Samuels GJ Till
Chairman Managing Director
29 October 2003
Dividends
A final dividend of 25 cents in respect of the year ended 31 March 2003 was
declared and paid during the period. The directors have, subsequent to the half-
year end, declared an interim dividend (number 31) of 11 cents per share.
The following dates are applicable:
Last date to trade "cum" the dividend Friday, 14 November 2003
Date trading commences "ex" the dividend Monday, 17 November 2003
Record date Friday, 21 November 2003
Date of payment Monday, 24 November 2003
Shareholders may not dematerialise or rematerialise their shares between Monday,
17 November 2003 and Friday 21 November 2003, both dates inclusive.
By order of the board
DC Bassett
Company Secretary
29 October 2003
Registered Office
6 Tetford Circle, Millennium Bridge Business Park, La Lucia Ridge 4320
Sponsor
Nedbank Corporate
Auditors
PricewaterhouseCoopers
Transfer Secretaries
Computershare Limited, 70 Marshall Street, Johannesburg 2001
Directors
DI Samuels* (Chairman), GJ Till (Managing), A Bekker (Alternate),
A Goldstone*, LJ Marais, M Rose-Innes*, RE Sherrell*, WR Taylor
*(Non-executive directors)
Company Secretary
DC Bassett
Results are available on: www.bearingman.co.za
Date: 29/10/2003 05:15:07 PM Produced by the JSE SENS Department
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