| Wed 26 Nov 2003, 17:51 | | Audited Abridged Consolidated Results |
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Inmins Limited - Audited Abridged Consolidated Results
INMINS LIMITED
(Registration number 1969/004321/06)
(Incorporated in the Republic of South Africa)
(Share code: INM ISIN number: ZAE000003588)
FINANCIAL HIGHLIGHTS
Net profit after taxation Up 35%
Dividend per share Up 55%
Headline earnings per share Up 39%
Earnings per share Up 43%
STATEMENT OF RESULTS
The board announces the audited abridged consolidated results of the Group for
the year ended 30 September 2003.
CONSOLIDATED INCOME STATEMENT
Year ended Year ended
30 September 30 September
2003 2002
R"000 R"000
Revenue 461 947 387 415
Operating profit 23 743 14 725
Goodwill amortisation - (314)
Net finance costs (1 070) (600)
Profit before taxation 22 673 13 811
Taxation (7 693) (2 711)
Net profit after taxation 14 980 11 100
Share of earnings of associate company 61 -
Outside shareholders" profit (4) (9)
Ordinary shareholders" profit 15 037 11 091
Headline earnings 14 879 11 235
Headline earnings per share (cents)* 40,5 29,1
Earnings per share (cents)* 40,9 28,7
Net asset value per share (cents) 167,1 134,5
Weighted average shares in issue (000"s)* 36 778 38 579
Shares in issue (000"s) 33 427 38 579
Dividend per share (cents) 17,1 11,0
Reconciliation of headline earnings
Ordinary shareholders" profit 15 037 11 091
Amortisation of goodwill - 314
Net profit on disposal of assets (225) (201)
Taxation effect thereon 67 31
14 879 11 235
Supplementary information
Capital expenditure 1 953 2 870
Depreciation 2 349 2 135
Interest bearing borrowings 10 729 6 460
*The weighted number of shares in issue was taken into account in determining
the earnings and headline earnings per share.
SUMMARISED CONSOLIDATED BALANCE SHEET
30 September 30 September
2003 2002
R"000 R"000
ASSETS
Fixed and other non-current assets 9 608 9 942
Current assets
- Inventory 50 016 48 776
- Receivables 70 499 66 733
- Bank and cash 29 26
Total assets 130 152 125 477
EQUITY AND LIABILITIES
Share capital and premium 39 471 44 887
Retained income 16 365 7 021
Shareholders" interest 55 836 51 908
Outside shareholders" interest 14 10
Total equity 55 850 51 918
Non-current liabilities
- interest bearing 2 083 2 523
- deferred taxation 9 43
Current liabilities
- interest bearing
- bank overdraft 7 589 2 982
- short term borrowings 1 057 955
- non-interest bearing
- payables 56 537 65 113
- taxation 7 027 1 943
Total equity and liabilities 130 152 125 477
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
30 September 30 September
2003 2002
R"000 R"000
Cash flow from operating activities 2 845 8 699
Profit before interest, tax and non-cash items 25 857 16 404
Increase in inventory (1 240) (9 577)
Increase in receivables (3 736) (6 332)
(Decrease)/increase in payables (10 079) 14 421
Cash flow from operations 10 802 14 916
Finance costs paid (net) (1 070) (600)
Taxation paid (2 643) (2 376)
Dividends paid (4 244) (3 241)
Cash flow used in investing activities (1 696) (2 533)
Cash flow (used in)/from financing activities (5 753) 1 263
Buyback of own ordinary shares (5 416) -
Interest bearing borrowings (repaid)/raised (337) 1 309
Loans advanced - (46)
Net (decrease)/increase in cash and cash (4 604) 7 429
equivalents
Cash and cash equivalents at beginning of year (2 956) (10 385)
Cash and cash equivalents at end of year (7 560) (2 956)
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
30 September 30 September
2003 2002
R"000 R"000
Total shareholders" equity at beginning of year 51 908 45 061
Share buyback (5 416) -
Changes in retained income 15 037 11 091
Dividend declared (5 693) (4 244)
Total shareholders" equity at end of year 55 836 51 908
SEGMENT INFORMATION
Turnover Turnover Operating Operating Total Total Total
profit profit assets assets liabilities
2003 2002 2003 2002 2003 2002 2003
(R"000) (R"000) (R"000) (R"000) (R"000) (R"000) (R"000)
Business
segments
(summary)
Mining 343 676 288 161 16 909 9 684 91 703 88 592 45 532
consumables
Industrial 118 271 99 254 6 353 5 059 32 169 32 524 20 359
consumables
Other - - 481 (18) 6 280 4 361 8 411
461 947 387 415 23 743 14 725 130 152 125 477 74 302
COMMENTS
OPERATIONAL OVERVIEW
The Group performed exceptionally well, with most operations out-performing
their previous years" result, leading to a new record performance for the Group.
The added value division operating predominantly in certain niche markets in the
mining sector continued its high growth trend and produced an all time operating
profit record, improving year-on-year by 85%. This division, as in the previous
year, contributed a substantial portion of the Group"s operating profit.
The mining supplies division, with its strategically placed branches throughout
the country, again produced excellent results with a year-on-year operating
profit growth of 61%.
The Group"s expansion policy into the industrial sector continues with the
industrial supplies division having increased its operating profit by 26% on the
previous year. The specialised businesses introduced four years ago, have been a
major contributor.
REVIEW OF RESULTS
Revenue rose by 19% to R462 million (2002: R387 million). Operating profit and
profit before tax both grew in excess of 60%. Net finance cost increased year-on
year by R0,4 million to R1,07 million. With the Group now in a full tax paying
position, after a taxation charge of R7,7 million (2002: R2,7 million), profit
after tax grew by 35%. Headline earnings per share ("HEPS"), using the weighted
average number of shares in issue during the year, increased by 39% to 40,5
cents (2002: 29,1 cents). If the HEPS was calculated for the full year on the
current number of shares in issue, the HEPS would have been 44,5 cents.
Dividends per share increased by 55% to 17,1 cents (2002: 11,0 cents).
Inventory at R50,0 million (2002: R48,8 million) and trade receivables at R67,1
million (2002: R62,6 million) were in line with the increased activities,
slightly higher than the previous year, but with both at under 50 days trading,
these levels are considered to be healthy. The gearing of the Group, at 19,2%
(2002: 12,4%), slightly higher than the previous year end, is still very
satisfactory considering the nature of the cash outflows as referred to below.
During the current year, the positive cash flow from operations of R10,8 million
after reducing trade creditors by R10 million, was pleasing, and after the
abnormal payment of R5,4 million for the buy-back of shares, the overall net
outflow for the year of R4,6 million (2002: net inflow of R7,4 million) was a
good achievement.
PROSPECTS
The Group surpassed all expectations in 2003 and is well positioned to continue
on its growth path.
With the prospects of a black empowerment partner, further potential exists.
The Groups" value added division relies heavily on the capital expenditure of
the mining sector and any change therein could have an influence on its
profitability.
DIVIDENDS
The Group"s policy is to declare one dividend per annum, payable in January each
year.
Notice is hereby given that a dividend of 17,1 cents (2002: 11,0 cents) per
ordinary share for the year ended 30 September 2003 has been declared to holders
of ordinary shares recorded in the share register of the company at the close of
business on 16 January 2004.
Last day to trade "cum" dividend is: Friday, 09 January 2004
Shares commence trading "ex" dividend from: Monday, 12 January 2004
Record date is: Friday, 16 January 2004
Payment date is: Monday, 19 January 2004
Share certificates may not be dematerialised/rematerialised between Monday, 12
January 2004 and Friday, 16 January 2004, both dates inclusive.
Dividends due to certificated holders will either be transferred electronically
to shareholders bank accounts,if so mandated, or cheques will be posted to their
registered addresses. Dividends due to holders of dematerialised shares will be
credited to shareholders accounts with their Central Securities Depository
Participant (CSDP) or broker.
SHARE BUYBACK
During the period May to September 2003, in terms of the general authority
granted to the directors, the company acquired 5 152 756 of its shares at an
average price of approximately 104 cents per share, reducing the number of its
issued shares to 33 426 785. The material purchases included in these
transactions were reported in the press on 12 May 2003 and 3 June 2003.
ACCOUNTING POLICIES
The results for the year ended 30 September 2003 have been prepared in
accordance with the South African Statements of Generally Accepted Accounting
Practice, the requiremnts of the South African Companies Act and the Listing
Requirements of the JSE Securities Exchange South Africa and with those applied
in previous financial periods.
AUDIT
The financial information set out in these abridged consolidated results of the
Group has been audited by BDO Spencer Steward (Johannesburg) Inc. Their
unqualified report is available for inspection at the company"s registered
office.
CORPORATE GOVERNANCE
The Group subscribes to the value of good corporate governance and is committed
to continued implementation of the recommendations of the King II Report and the
requirements of the JSE Securities Exchange of South Africa. The Group
endeavours to conduct its business in accordance with the principles of
accountability, transparency and integrity.
BLACK EMPOWERMENT
The Group recognises the need for the continued promotion and upliftment of
previously disadvantaged persons and communities, and to this end has already
formed three joint venture operations as a stepping stone towards Black Economic
Empowerment ("BEE") shareholdings in this company or in major subsidiaries. The
policy is to promote BEE through shareholdings in the various Group companies,
whereby previously disadvantaged companies and individuals, who can add value to
the Group, are encouraged to invest risk capital in the Group.
Inmins Limited is currently involved in discussions whereby it is proposed that
an empowerment company or individuals become significant shareholders. It is
expected that a BEE agreement will be concluded by the end of 2004.
DIRECTORATE
Having been an executive director of Inmins since 1996 and after 17 years"
service with the Group, Mr D G Clarke has resigned, but will remain on the board
as a non-executive director.
DEMATERIALISATION OF SHARES
STRATE, the electronic settlement system for shares on the JSE Securities
Exchange of South Africa ("JSE") implemented a system that requires all paper
certificates to be converted into an electronic format (dematerialisation)
before they can be traded on the JSE and settled in STRATE. It would appear that
many shareholders are still unaware of the importance of converting to the
electronic record and continue to hold share certificates. All shareholders are
therefore advised to dematerialise their shares and surrender all share
certificates to their CSDP or broker as soon as possible.
On behalf of the board
W A R Wenteler P J Kruger
Chairman Managing Director
27 November 2003
Directors
W A R Wenteler (Chairman), J H Henderson* (Deputy Chairman),
P J Kruger (Managing), D G Clarke*, W Fourie (Financial), D B Mostert*,
C J Pallas* *(Non-executive)
Company secretaries
Winhold Limited (Registration number 1945/019679/06)
Business address and registered office
884 Linton Jones Street, Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
E-mail: winholdsec@inmins.co.za
Website: www.inmins.co.za
Transfer secretaries
Computershare Limited
70 Marshall Street, Johannesburg 2001
(PO Box 61051, Marshalltown 2107)
E-mail: it@registrar.co.za
Auditors
BDO Spencer Steward (Johannesburg) Inc.
13 Wellington Road, Parktown 2193
(Private Bag X60500, Houghton 2041)
E-mail: bdojhb@bdo.co.za
Date: 26/11/2003 05:45:08 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
