| Fri 14 Nov 2003, 8:30 | | results for the year ended 30 September 2003 |
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Barloworld Limited - Audited results for the year ended 30 September 2003
Barloworld Limited
(Registration number 1918/000095/06)
JSE codes: BAW and BAWP
ISIN codes: ZAE000026639 and ZAE000026647
Audited results for the year ended 30 September 2003
Strong operating performance delivers solid results despite rand strength
Operating profits rise 19% to R2 455 million
- Strong operational performance in equipment, cement and coatings
- Headline earnings per share 593 cents (2002: 622 cents)
- Dividend increased 5% to 290 cents per share
- Sound prospects in improving economic conditions
Tony Phillips, CEO of Barloworld, said:
"This is our fifth consecutive year of good growth in operating profit and a
strong endorsement of our philosophy of Value Based Management. In the face of
the appreciation in the rand and despite having over half our revenues generated
outside South Africa, we have been able to achieve headline earnings of 593
cents compared with 622 cents last year.
"Macro-economic conditions are moving in our favour with lower interest rates
having a positive effect on the South African economy, the upturn in the United
States improving markets for our US businesses and a generally positive outlook
for Europe and Australia.
"The company is in great shape and we look forward to making further progress in
2004."
14 November 2003
Enquiries
Barloworld Limited: Mark Drewell Tel +27 11 445 1204, e-mail
invest@barloworld.com
College Hill South Africa: Nicholas Williams, Angela Parr, Sam Denoon-Stevens
Tel: +27 11 447 3030
College Hill London Matthew Gregorowski Tel: +44 207 457 2020.
For background information visit www.barloworld.com
Chairman and chief executive"s report
Pleasing results in 2003
Despite a 4% decline in revenues, operating profits rose 19% and our sustained
implementation of Value Based Management continued to deliver results. The
strengthening of the rand during the year resulted in negative IAS fair value
adjustments on financial instruments of R334 million (2002: R55 million
positive). Against this background we were pleased to hold headline earnings per
share at 5% below 2002. The total dividend for the year was increased by 5% to
290 cents per share (2002: 275 cents).
The mixed strength of the South African economy was seen in the strong operating
performance from our infrastructure-focused equipment, cement & lime and
coatings operations which contrasted with those from our steel tube and motor
businesses. These were affected for most of the year by a downturn in the
international steel cycle and high real interest rates respectively.
Our operations outside South Africa made a solid contribution to profits.
Improved results in local currency terms were achieved in depressed markets in
both the industrial distribution and scientific businesses which operate
primarily in the United Kingdom and United States, while the Iberian equipment
business performed at the same high level as the previous year. In Australia,
the coatings business did well and the motor operations performed satisfactorily
in the face of major site renovations.
Corporate activity to enhance value
During the year under review we acquired an additional Freightliner truck
dealership in the United States and a materials handling business in the United
Kingdom. We also increased our stakes in Pretoria Portland Cement Company
Limited (PPC) and Avis Southern Africa Pty Limited (Avis) to 67.4% and 34.7%
respectively. We disposed of our South African motor leasing book, our 49%
investment in the Schenectady coatings associate and certain motor dealerships
in terms of manufacturer rationalisation programmes.
Since 1 October 2003 we have acquired another Freightliner dealership in the
United States and the Hyster lift truck dealership for the Netherlands. The sale
of Henry Cooke, our UK paper business, is well advanced.
Amongst other Black Economic Empowerment initiatives, we concluded the largest
transaction to date in the motor industry through the formation of the NMI DSM
DaimlerChrysler joint venture in April 2003. We also initiated the sale of PPC"s
Afripack paper sack business to an empowerment and management consortium.
The outlook for 2004 is positive
In South Africa we expect continued growth in demand for most of our products
and services as the economy benefits from the progressive lowering of interest
rates. In the US the upturn is well under way and our prospects there are
brighter than they have been for the past two years. Trading conditions should
remain positive in Spain and Australia and we are seeing modest improvements in
the United Kingdom and Portugal.
A key uncertainty remains the current strength and future direction of the rand.
In South Africa our mining customers are earning lower income and a number of
projects have been put on hold as a consequence of the value of the rand. The
exchange rate has an impact on earnings through lower export volumes and/or
margins, the translation effects on profits earned outside South Africa and IAS
financial instrument adjustments. This is difficult to forecast but currency
stability, even at the current exchange rate levels, will be beneficial.
Our strategy remains focused on improving the quality of our existing operations
to generate sustainable higher margins and profits and to grow the business both
organically and through acquisition.
We look forward to making further progress in 2004.
WAM Clewlow AJ Phillips
Chairman Chief Executive Officer
Group financial review
Worldwide revenues decreased by 4% to R34 603 million primarily due to the
impact of the rand appreciation on the translation of offshore revenues which
accounted for 52% of total revenues (2002: 58%). Most geographic areas showed
revenue growth in local currency terms.
Operating profit rose 19% to R2 455 million notwithstanding the fact that the
profits from the offshore businesses were diluted on translation due to the
relative strength of the rand. Included in operating profit is a trading
benefit of approximately R218 million mainly in the equipment business in South
Africa. This arose primarily from higher gross margins resulting from the sale
of inventories at selling prices based on rates in forward cover contracts,
whereas cost of sales is recorded at average spot rates at the transaction date
(as required by IAS21). This favourable impact at the operating profit level,
however, is more than offset by the related IAS39 (Recognition and Measurement
of Financial Instruments) mark-to-market adjustments on financial instruments
referred to below.
In accordance with group policy, the South African operations cover all foreign
exchange trade commitments. In terms of IAS39, which was applied for the first
time in the 2002 financial year, derivative financial instruments must be
recorded at fair value with the resultant mark-to-market gain or loss taken to
income.
Due to the strengthening of the rand against the US dollar, the application of
IAS21 and IAS39 resulted in a charge to income of R334 million (2002: R55
million gain) as a result of marking-to-market financial instruments. The major
impact in the year under review was in the equipment business in South Africa
where forward exchange contracts were taken out to cover machine and parts
purchases denominated in US dollars. After taking into account the amount
recouped by the group at the operating profit level, the overall impact was to
decrease profit before tax by R116 million and after tax profit by R81 million.
This equates to approximately 41 cents at the headline earnings per share level.
Finance costs increased from R401 million to R531 million, mainly as a result of
higher average local borrowing costs when compared to the prior financial year.
Average borrowings were also slightly higher due to growth in the short term
rental business and working capital needs arising from increased activity levels
in certain operations.
Income from investments of R274 million (2002: R253 million) includes higher
interest received resulting mainly from strong operational cash flows at PPC.
Amortisation of goodwill decreased from R116 million to R102 million due to the
impact of goodwill impairments made at the end of the previous financial year
and the rand appreciation on the translation of offshore goodwill.
Taxation declined from R636 million to R604 million. The current year"s
effective tax rate excluding exceptional items, Secondary Tax on Companies,
prior year tax and goodwill amortisation is consistent with the prior year at
31.7% (2002: 31.9%).
Income from associates and joint ventures at R114 million is in line with the
prior year. The increased share of profits due to a higher shareholding in
Avis and the contribution from the NMI DSM joint venture were offset by the
exclusion of Natal Portland Cement (NPC) following its sale by PPC in the prior
year.
The minority interest in profits, which comprises mainly the PPC minorities,
increased from R207 million to R212 million. The prior year figure includes an
amount of R89 million relating to the minority share of the exceptional profit
arising on the sale of NPC.
Exceptional profits amount to R81 million (2002: R369 million) and include
profits on disposal of properties, investments and subsidiaries of R123 million,
partly offset by impairment losses of R45 million.
Headline earnings per share decreased by 5% from 622 cents to 593 cents. The
appreciation of the rand in the year under review was a significant factor
impacting headline earnings. In addition to the mark-to-market adjustments on
financial instruments, the strong currency also affected the translation of
profits from our offshore businesses to the extent of approximately 60 cents per
share.
Cash generated from operations of R3 523 million (2002: R3 660 million)
continued to be strong. Net cash inflow from operating activities of R1 479
million (2002: R2 388 million) includes the impact of realised financial
instrument losses, higher finance costs, and the special centenary dividend paid
in January 2003.
Net cash applied to investing activities of R1 812 million (2002: R2 621
million) includes capital expenditure of R843 million, investment in rental
assets of R1 039 million, investment in lease receivables of R1 103 million, and
proceeds on disposal of the motor leasing book of R881 million. The investment
in lease receivables has been included under investment activities rather than
operating activities in the current year in order to be consistent with the
disclosure of our investment in long term rental fixed assets. Comparatives are
shown on a similar basis.
The balance sheet remains healthy. Total assets decreased by R3 457 million to
R23 640 million, primarily due to the impact of the rand appreciation on the
translation of international assets. Total interest-bearing borrowings
decreased to R6 143 million from R7 188 million last year and the debt:equity
ratio (including the leasing operations) decreased to 59.5% from 59.8%.
Excluding the leasing debt, this ratio increased to 26.7% from 23.3%.
CB Thomson
Finance Director
Segmental reviews
The segment result includes operating profit, fair value adjustments on
financial instruments and goodwill amortisation but is stated before investment
income, interest paid and taxation. In the case of the leasing businesses,
segment result is net of interest paid. The prior year numbers have been stated
on a consistent basis. Income from associates, which includes our share of
earnings from joint ventures, is shown at the profit after tax level.
Net assets comprise total assets less non-interest bearing liabilities, which
exclude current and deferred tax assets and liabilities respectively.
The commentaries in the segmental reviews reflect performance in local
currencies.
Equipment
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
- Europe 5 303 6,199 505 520 1 601 1 777
- South Africa 3 817 2 790 67 88 1 410 1 197
- Rest of Africa 1 501 1 141 170 136 145 190
Trading 10 621 10 130 742 744 3 156 3 164
- Europe 80 69 7 11 304 432
- South Africa 207 99 43 12 1 375 931
Leasing 287 168 50 23 1 679 1 363
Total trading & 10 908 10 298 792 767 4 835 4 527
leasing
Trading activity levels in Europe remained high against a background of the
continuing public sector infrastructure investment programme in Spain. This
programme ensured strong demand for our products and services and a firm order
book. In Portugal, business was downsized as a result of a clamp down on public
sector spending. A higher portion of parts and service in the revenue mix
compared to new and used equipment sales resulted in an overall margin
improvement in Europe. The Siberian business continued its satisfactory
development, posting a contribution to profits for the first time.
In a vibrant trading environment in our key mining and construction markets, the
South African business achieved improved operating margins and our materials
handling operation had a record year. In the rest of Africa, the highlight of
excellent growth in all territories was Angola where political stability
resulted in improved demand for infrastructure rehabilitation and mining
expansion. However, the strong operating performance in southern Africa was
offset in the segment result by R332 million in negative fair value adjustments
on financial instruments.
Our established South African equipment finance business performed well
achieving above average returns while the book in Spain continued to develop.
Industrial distribution
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
- North 3 135 3 812 10 28 1 029 1 545
America
- Europe 2 052 2 202 79 95 356 550
Trading 5 187 6 014 89 123 1 385 2 095
- North America 74 61 6 2 668 627
- Europe 383 521 40 33 1 660 2 132
Leasing 457 582 46 35 2 328 2 759
Total Trading & 5 644 6 596 135 158 3 713 4 854
Leasing
Share of associate (3)
income -
The US economy continued to struggle this year as reflected by a very modest
improvement in the lift truck market. The heavy-duty truck market continued in
recession and there was downward pressure on selling prices. The US lift truck
business showed an improvement in profitability year on year while our
Freightliner business performed below expectations and made a loss.
Our profits in Europe grew due to significantly better equipment deliveries
against only slightly improved demand. We experienced a much improved
performance in Belgium.
Net assets in the trading businesses declined despite two small acquisitions
during the year.
Our trading operations are strongly supported by our leasing business which
continued to achieve satisfactory returns. Leasing assets grew in both the US
and Europe due to our success in the Smart Partnership long-term maintenance
business.
Motor
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
- South Africa 6 652 6 851 72 146 1 008 799
- Rest of Africa 302 357 (7) 10 36 24
- Australia 1 393 1 656 17 28 412 472
Trading 8 347 8 864 82 184 1 456 1 295
Leasing* 75 112 10 19 8 870
Total Trading & 8 422 8 976 92 203 1 464 2 165
Leasing
Share of associate 76 46
income
*South Africa
The South African operations did well to hold revenues in a weak market despite
our relative under representation in the Toyota brand, which dominated the
market with a range of new products. Revenues were lower due to the effect of
the transfer of our DaimlerChrysler dealerships in Kwazulu Natal into a 50%
owned empowerment joint venture, NMI DSM. The earnings of this joint venture
were reported as associate income for the second half of the year. High interest
rates, weaker demand at dealer level and an industry overstocked situation
resulted in depressed margins.
Namibia produced another satisfactory result but the Botswana operations
experienced a poor trading period.
The Australian operations performed well considering the disruptive effect on
trading of building improvements in progress at our largest dealership.
The leasing book, which was sold in April 2003, produced a satisfactory result
for the period. Our associate company Avis and our Mercedes Benz of Melbourne
and NMI DSM joint ventures, performed strongly.
Cement & lime
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
South Africa 2 776 2 226 845 586 2 687 2 591
Rest of Africa 240 345 28 44 320 635
3 016 2 571 873 630 3 007 3 226
Share of associate 6 34
income
Domestic cement sales volumes in South Africa ended the year ahead of
expectations due to higher than anticipated growth in retail and infrastructure
spending. The Coega harbour development, which came on stream during the year,
also contributed to the year-on-year increase. South African based export
volumes rose by 22.5%, but the recovery of the rand reduced export margins.
Volumes in the lime operations fell 3% but margins increased due to the benefits
of re-negotiated long-term prices and higher levels of activity at the PPC
Saldanha material handling facility.
Our Zimbabwean cement business reported a small operating profit in the face of
continued economic difficulties severely depressing demand and problems relating
to the regular supply of power, diesel, coal and foreign exchange.
Coatings
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
South Africa 1 104 1 071 107 78 359 445
Rest of Africa 121 114 15 14 26 23
Europe 81 3 7 16
Australia & Asia 1 028 1 235 33 36 262 312
2 253 2 501 155 131 654 796
Share of associate 30 28
income
In South Africa, a record profit was driven by an improved product mix with
growth in the premium brand segments and further market share gains in
automotive coatings. Combined with continuing efficiency gains throughout the
business, profits rose 37%. With the exception of Zambia, the rest of Africa
produced results in line with expectations and sustained a high level of
returns. Our Australian operations were ahead of the prior year with a good
performance in both the retail and trade sectors.
Scientific
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
Europe 1 167 1 459 46 57 784 1 171
North America 466 720 (34) (52) 370 601
Asia 135 157 - 4 100 133
1 768 2 336 12 9 1 254 1 905
Revenues were unchanged in soft trading conditions in all the major markets for
our scientific products. Against this background we did well to increase
profits. Reduced operating losses in our primarily US-based Melles Griot laser
and optics business reflected the extensive restructuring actions which have
significantly reduced the cost base. In Europe, demand for our laboratory
products from the state-funded scientific research and education sectors in the
larger Euro-zone markets fell due to budget cuts. Spending on R&D by the
pharmaceutical industry in many key markets was also depressed and overall weak
demand was exacerbated by distributor destocking.
Steel tube
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
South Africa 1 736 1 720 38 84 514 486
Share of associate 5 11
income
Turnover and market share were maintained in our steel tube business. However a
sharp downturn in the international steel cycle in the second half and the
strength of the rand resulted in substantially reduced margins in both domestic
and export markets. In South Africa volumes in the second half were negatively
impacted by the postponement of mining industry capital projects as result of
the strong rand and concerns over higher royalty charges proposed by the
government.
Corporate operations and other
R million Revenue Segment result Net assets
Year ended 30 Sept Year ended 30 Sept 30 Sept
2003 2002 2003 2002 2003 2002
South Africa 234 176 (72) (33) 232 173
Rest of Africa 39 80 (4) 6 273 287
Europe 583 745 (2) 51 1 077 1 438
856 1 001 (78) 24 1 582 1 898
Our South African logistics business was profitable and remained focused on
investing in its intellectual base for future growth. In Europe, the profits in
our Spanish logistics business suffered as a result of difficult trading
conditions in its markets and lower warehouse capacity utilisation. Henry
Cooke, our UK based speciality paper business, produced good results.
Other activities include the costs of corporate operations, primarily in South
Africa and the United Kingdom. The current year included negative fair value
adjustments on financial instruments of R14 million compared to a prior year
gain of R13 million. The prior year also included a R48 million profit on the
sale of assets.
Dividend declaration for the year ended 30 September 2003: Dividend Number 149
Notice is hereby given that the following dividend has been declared in respect
of the year ended 30 September 2003:
- Number 149 (final dividend) of 200 cents per ordinary share (2002:185 cents
per ordinary share)
In compliance with the requirements of the JSE Securities Exchange South Africa,
the following dates are applicable:
Last day to trade cum dividend Friday 2 January 2004
Shares trade ex dividend Monday 5 January 2004
Record date Friday 9 January 2004
Payment date Monday 12 January 2004
Share certificates may not be dematerialised or rematerialised between Monday, 5
January 2004 and Friday, 9 January 2004, both days inclusive.
On behalf of the Board, M J Barnett, Secretary
Directors
Non executive: WAM Clewlow (Chairman) RKJ Chambers# MJ Levett DB Ntsebeza# SB
Pfeiffer** LA Tager# EP Theron# RC Tomkinson* #
Executive: A J Phillips (Chief Executive)* MD Coward LS Day* BP Diamond JE
Gomersall* AJ Lamprecht PJ Maybury* PM Surgey CB Thomson
* British **American
# Independent
Group income statement
R million Year ended 30 September % change
2003 2002
Revenue 34 603 35 999 (4)
Operating profit 2 455 2 067 19
Fair value adjustments on financial (334) 55
instruments
Finance costs (531) (401)
Income from investments 274 253
Goodwill amortisation (102) (116)
Profit before exceptional items 1 762 1 858 (5)
Exceptional items 81 369
Profit before taxation 1 843 2 227
Taxation 604 636
Profit after taxation 1 239 1 591
Income from associates and joint ventures 114 119
Minority interest and 6% preference (212) (207)
shareholders in Barloworld Limited
Net profit 1 141 1 503
Reconciliation of net profit to headline
earnings
Net profit 1 141 1 503
Net exceptional profits (refer note 1) (91) (347)
Net post retirement benefit settlement 7 (70)
costs
Goodwill amortisation 102 116
Interest in associate goodwill 9 11
amortisation
(Profit)/loss on sale of plant and (6) 1
equipment excluding rental assets
Headline earnings 1 162 1 214
Weighted average number of ordinary
shares in issue during the year (000)
- basic 196 028 195 284
- fully diluted 202 460 199 755
Net profit per share (cents)
- basic 582 770
- fully diluted 571 751
Headline earnings per share (cents)
- basic 593 622 (5)
- fully diluted 581 608 (4)
Dividends per share (cents) 290 275 5
- interim 90 90
- final 200 185
- special centenary dividend 100
Group balance sheet
R million 30 September
2003 2002
Assets
Non-current assets 12 093 13 872
Property, plant and equipment 6 672 7 565
Other non-current assets 699 971
Goodwill and intangible assets 1 464 1 903
Investment in associates and joint ventures 535 373
Finance lease receivables 2 267 2 675
Deferred tax assets 456 385
Current assets 11 547 13 225
Inventories 5 010 5 895
Trade and other receivables 4 924 5 509
Taxation 66 67
Cash and cash equivalents 1 547 1 754
Total assets 23 640 27 097
Equity and Liabilities
Capital and reserves
Share capital and premium 712 682
Other reserves 1 727 3 789
Retained income 7 137 6 727
Equity portion of convertible bond 36 36
Interest of shareholders of Barloworld Limited 9 612 11 234
Minority interest 708 791
Interest of all shareholders 10 320 12 025
Non-current liabilities 4 870 5 195
Interest-bearing 3 404 3 248
Deferred tax liabilities 621 617
Convertible bond - 263
Non-interest bearing 845 1 067
Current liabilities 8 450 9 877
Amounts due to bankers and short-term loans 2 559 3 677
Convertible bond 180 -
Taxation 461 479
Trade and other payables 4 746 5 168
Provisions 504 553
Total equity and liabilities 23 640 27 097
Group cash flow statement
R million Year ended 30 Sept
2003 2002
Cash flow from operating activities
Operating cash flows before movements in working 3 798 3 244
capital
(Increase) / decrease in working capital (275) 416
Cash generated from operations 3 523 3 660
Realised adjustments on financial instruments (320) 55
Finance costs and investment income (218) (111)
Taxation paid (566) (567)
Cash flow from operations 2 419 3 037
Dividends paid (940) (649)
Net cash inflow from operating activities 1 479 2 388
Net cash applied to investing activities (1 812) (2 621)
Acquisition of subsidiaries and investments (294) (431)
Acquisition of property, plant and equipment (843) (1 281)
Investment in rental assets (1 039) (1 041)
Investment in instalment sale and leasing (1 103) (828)
receivables
Proceeds on disposal of lease receivable book,
subsidiaries, investments and property, plant and 1467 960
equipment
Net cash outflow before financing activities (333) (233)
Net cash available from financing activities 487 (24)
Ordinary shares issued, net of buyback 26 -
Increase/(decrease) in interest-bearing liabilities 461 (24)
Net increase/(decrease) in cash and cash 154 (257)
equivalents
Cash and cash equivalents at beginning of year 1 754 1 781
Effect of foreign exchange rate movements on cash (361) 230
balance
Cash and cash equivalents at end of year 1 547 1 754
Other group salient features
Year ended 30 Sept
2003 2002
Number of ordinary shares in issue (000) 196 339 195 284
Net asset value per share including investments at
fair value (cents) 5 063 5 872
Return on net assets excluding leasing operations (%) 18.9 16.0
Total liabilities to total shareholders" funds (%) 123.1 120.2
Total borrowings to total shareholders" funds
- gross excluding leasing operations (%) 26.7 23.3
- gross including leasing operations (%) 59.5 59.8
Interest cover
- excluding leasing operations(times) 4.1 6.1
- including leasing operations(times) 3.1 3.8
Statement of changes in equity
R million Year ended 30 Sept
2003 2002
Interest of Barloworld Limited shareholders
Balance at the beginning of the year 11 9 061
234
Net movements not recognised through the income (2 030) 1 160
statement
Buy-back of Barloworld Limited shares (4) -
Barloworld Limited ordinary shares issued 30 -
Movement on foreign currency translation reserve (2 1
072) 359
Other reserve movements 16 (199)
Net movements recognised through the income statement 408
1 013
Net profit for the year 1 141 1 503
Hedge reserve released to income (30)
-
Reserve released on disposal of available-for-sale 3 (1)
investments
Dividends on ordinary shares (736) (459)
Interest of Barloworld Limited shareholders at end of 9 612 11
year 234
Segmental Summary
R million Revenue Operating profit
Year ended 30 Sept Year ended 30 Sept
2003 2002 2003 2002
Equipment 10 908 10 298 1 125 737
Industrial 5 644 6 596 159 201
distribution
Motor 8 422 8 976 128 224
Cement & lime 3 016 2 571 866 613
Coatings 2 253 2 501 164 129
Scientific 1 768 2 336 34 38
Steel tube 1 736 1 720 10 84
Corporate operations & 856 (31) 41
other 1 001
34 603 35 999 2 455 2 067
Segmental Summary
R million Fair value adjustment Goodwill
on financial instruments amortisation
Year ended 30 Sept Year ended 30 Sept
2003 2002 2003 2002
Equipment (332) (1) (2)
32
Industrial (24) (30)
distribution (13)
Motor (16) (20) (21)
Cement & lime 7 (3)
20
Coatings (8) (1) (1)
3
Scientific 1 (23) (29)
Steel tube 28
Corporate operations & (14) (33) (30)
other 13
(334) (102) (116)
55
Segmental Summary
R million Segment result Net assets
Year ended 30 Sept Year ended 30 Sep
2003 2002 2003 2002
Equipment 793 767 4 835 4 527
Industrial 135 158 3 713 4 854
distribution
Motor 92 203 1 464 2 165
Cement & lime 873 630 3 007 3 226
Coatings 155 131 654 796
Scientific 12 9 1 254 1 905
Steel tube 38 84 514 486
Corporate operations & (78) 24 1 582 1 898
other
2 019 2 006 17 023 19 857
Notes
R Million 2003 2002
1. Exceptional items
Profit on disposal of properties, investments 123 352
and subsidiaries
Impairment losses (45) (131)
Realisation of translation reserve on 201
liquidation of offshore subsidiaries
Post retirement benefit settlement costs 7 (100)
Gain arising on PPC share issue to acquire 60
Portland Holdings
Attributable exceptional items of associates (10)
Other (4) (3)
Exceptional profits 81 369
Taxation 11 32
Interest of outside shareholders (1) (54)
Net exceptional profits 91 347
2. Contingent liabilities
Other guarantees and claims 284 394
3. Accounting policies and disclosures
The annual financial statements have been prepared in accordance with
International Financial Reporting Standards (IFRS) on a basis consistent
with the prior year. There have been no changes in accounting policies
during the year. In the current year, capitalised software development
and other software costs have been reclassified from Property, Plant &
Equipment to Intangible assets, as required by International Financial
Reporting Standards. The prior year numbers have been stated on a
consistent basis, which has resulted in R246 million in capitalised
software costs being reclassified to Intangible assets.
4. Audit opinion
The auditors, Deloitte & Touche, have issued their opinion on the group"s
financial statements for the year ended 30 September 2003. A copy of
their unqualified report is available for inspection at the company"s
registered office
About Barloworld
Barloworld is an international industrial brand management company. We have
operations in thirty-two countries around the world and approximately half of
our 23 000 people are in South Africa where we were founded in 1902. We offer
our global customer base business solutions backed by leading industrial brands,
supported by service, relationships and attention to detail. These include both
rental options and the sale of products and services. We operate under a
philosophy of Value Based Management which focuses on creating sustainable value
for all our stakeholders.
We market and distribute leading international brands on behalf of principals as
well as offering our own market leading brands. Our principals include
Caterpillar (machines and engines), Hyster (lift trucks), Freightliner (trucks),
and many of the world"s leading motor vehicle brands. We also offer a finance
solution to many of our capital goods customers. We manufacture, market and
distribute our own brand products and services under brand names such as PPC
(cement and lime), Plascon, Taubmans, Bristol and White Knight (coatings), Robor
(steel tube), Melles Griot (photonics) and Bibby Sterilin (laboratory
equipment). We are also developing logistics businesses in southern Africa and
Europe.
Striving for market leadership, the Barloworld team thrives on taking on
difficult business challenges. We do things differently and we use our diversity
to deliver value to our customers.
Addresses
Registered office and business address
Barloworld Limited
180 Katherine Street
PO Box 782248
Sandton
2146, South Africa
Ph: +27 11 445 1000
E mail: invest@barloworld.com
United Kingdom registrar
Lloyds TSB Registrars
The Causeway, Worthing
West Sussex, BN99 6DA, England
Ph: +44 190 350 2541
Transfer secretaries
Ultra Registrars (Pty) Ltd
Physical address:
5th Floor,
11 Diagonal Street
Johannesburg
2000, South Africa
Postal address:
P O Box 4844
Johannesburg
2000, South Africa
Ph: +27 11 834 2266
E mail: info@ultrareg.co.za
Date: 14/11/2003 07:00:55 AM Produced by the JSE SENS Department
