| Mon 1 Dec 2003, 13:50 | | STATEMENT OF RESULTS |
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WINHOLD LIMITED - STATEMENT OF RESULTS
WINHOLD LIMITED
(Registration number 1945/019679/06)
(Incorporated in the Republic of South Africa)
(Share code: WNH/WNHP)
(ISIN number: ZAE000033916/ZAE000008041)
FINANCIAL HIGHLIGHTS
Turnover Up 13%
Profit after tax Up 88%
Dividends (ordinary) Up 59%
Headline earnings per ordinary share Up 91%
Earnings per ordinary share Up 130%
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 720 188 639 371
Operating profit 40 834 22 541
Goodwill amortised (net) 20 (813)
Net finance costs (7 290) (5 748)
Profit before taxation 33 564 15 980
Taxation (9 666) (3 258)
Net profit after taxation 23 898 12 722
Attributable to:
- Outside shareholders (6 637) (5 171)
Ordinary shareholders" profit 17 261 7 551
Ordinary shareholders" earnings 17 117 7 407
Headline earnings 15 471 8 080
Headline earnings per ordinary share (cents) 16,4 8,6
Earnings per ordinary share (cents) 18,2 7,9
Net asset value per ordinary share (cents) 84,1 69,4
Net tangible asset value per ordinary share
(cents) 91,6 75,2
Ordinary shares in issue (000"s) 94 197 94 197
Dividend per ordinary share (cents) 3,5 2,2
Reconciliation of headline earnings
Ordinary shareholders" profit 17 261 7 551
Net profit on disposal of assets (1 859) (234)
Taxation effect thereon 171 163
Amortisation of goodwill (net) (20) 813
Minority share of goodwill amortisation
and profit on sale of assets 62 (69)
Preference dividend (144) (144)
15 471 8 080
Supplementary information
Capital commitments 8 300 2 900
Capital expenditure 9 230 7 177
Depreciation 10 456 9 560
Interest bearing borrowings 41 105 47 385
Interest earning deposits 6 513 4 553
SUMMARISED CONSOLIDATED BALANCE SHEET
30 September 30 September
2003 2002
R"000 R"000
ASSETS
Fixed and other non-current assets 65 760 67 876
Negative goodwill (7 322) (5 939)
Deferred taxation 2 708 1 686
Current assets
- Inventory 74 112 74 309
- Receivables 112 675 119 564
- Bank and cash 6 572 4 605
Total assets 254 505 262 101
EQUITY AND LIABILITIES
Stated capital 68 060 68 060
Preference share capital and premium 1 602 1 602
Non-distributable reserves 17 838 17 838
Accumulated deficit (6 686) (20 506)
Shareholders" interest 80 814 66 994
Outside shareholders" interest 22 162 24 783
Total equity 102 976 91 777
Non-current liabilities
- interest bearing 9 061 14 730
- interest free 1 502 1 170
- deferred taxation 1 467 1 015
Current liabilities
- interest bearing
- bank overdraft 19 746 22 776
- short term borrowings 12 298 9 879
Current liabilities
- interest free
- payables 96 683 117 175
- taxation 10 772 3 579
Total equity and liabilities 254 505 262 101
SUMMARISED CONSOLIDATED CASH FLOW STATEMENT
Year ended Year ended
30 September 30 September
2003 2002
R"000 R"000
Cash flow from operating activities 19 789 8 162
Profit before interest, tax and
non cash items 49 306 30 068
Decrease/(increase) in inventory 197 (10 693)
Decrease/(increase) in receivables 6 888 (14 410)
(Decease)/increase in payables (22 028) 14 561
Cash flow from operations 34 363 19 526
Finance costs paid (net) (7 290) (5 747)
Taxation paid (3 042) (2 220)
Dividends paid (4 242) (3 397)
Cash flow used in investing activities (11 801) (5 207)
Increase in holding in subsidiary - (1 614)
Buyback by subsidiary of own shares (5 416) -
Investment in fixed assets net of disposals (6 385) (3 593)
Cash flow used in financing activities (2 991) (1 705)
Interest bearing borrowings repaid
net of new loans (2 895) (1 666)
Loans advanced (96) (39)
Net increase in cash and cash equivalents 4 997 1 250
Cash and cash equivalents at beginning of year (18 171) (19 421)
Cash and cash equivalents at end of year (13 174) (18 171)
SUMMARISED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
30 September 30
September
2003 2002
R"000 R"000
Shareholders" interests at beginning of year 66 994 58 606
Changes in share capital and premium - 3 053
Changes in accumulated deficit 17 261 7 551
Preference dividend declared (144) (144)
Ordinary dividend declared (3 297) (2 072)
Shareholders" interests at end of year 80 814 66 994
SEGMENT INFORMATION
Turn- Turn- Opera- Opera- Total Total Total Total
over over ting ting assets assets liabili liabili
profit profit ties ties
2003 2002 2003 2002 2003 2002 2003 2002
(R"000) (R"000) (R"000) (R"000) (R"000) (R"000) (R"000) (R"000)
Business
segments
(summary)
Flexible 258 241 251 956 17 213 7 896 121 684 132 895 73 451 92 460
plastics
(Gundle)
Mining 343 676 288 161 16 909 9 684 91 703 88 592 45 532 49 105
consuma-
bles
(Inmins)
Industrial 118 271 99 254 6 353 5 059 32 169 32 524 20 359 17 884
consuma-
bles
(Inmins)
Other - - 359 (98) 8 949 8 090 12 187 10 875
720 188 639 371 40 834 22 541 254 505 262 101 151 529 170 324
COMMENTS
REVIEW OF RESULTS
The financial year of 2003 was the best ever year in the history of the group.
Both subsidiaries, Inmins Limited and Gundle Limited, obtained record results.
Revenue increased by 13% to R720 million, operating profit increased by 81%,
profit before taxation increased by 110%. Profit after tax increased by 88%.
Headline earnings per ordinary share increased by 91% and earnings per ordinary
share increased by 130%. Dividends per ordinary share were up by 59%.
Gearing improved to 51,9% from 72,5%.
Improved results led to a positive Group cash flow for the year of
R5 million (2002: R1,25 million), after:
* reducing payables by R22 million;
* buyback by subsidiary of own shares to a value of R5,4 million; and
* net investment of R6,4 million in fixed assets, mainly in the Gundle
subsidiary.
Overall a very rewarding financial year.
DIVISIONAL OVERVIEW
Inmins Limited
Inmins performed exceptionally well, with most operations out-performing their
previous years" results, leading to a new record performance.
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 another excellent year with a 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.
Gundle Limited
The Gundle group (wholly owned), continued to benefit significantly from the
turnaround strategies implemented, resulting in an excellent profit performance
when compared to the last financial year. Focused products in each plant.
focused management teams, improved services, technological advancements and
improvements, product innovation and new investments all contributed to the best
ever results in Gundle"s history. The inherent potential of the Group is now
becoming a reality.
Turnover during the past year increased by only 2,5%, but major efficiency and
cost control improvements resulted in a tenfold profit after tax increase when
compared to the previous year. Three of the four manufacturing units obtained
best ever profits, as did two of the four trading branches. A major turnaround
occurred in one of the other trading branches. The broadened management team is
performing well and is already focusing on new challenges.
PROSPECTS
Inmins Limited and Gundle Limited are well positioned to continue on their
current growth paths, and with prospects of a black empowerment investment
further potential exists for both.
The diversification of Inmins bodes well for the future however, the added value
division relies heavily on the capital expenditire of the mining sector any
change therein could have an influence on its profitability.
Gundle"s excellent performance for the past year is expected to improve further
under its enthusiastic focused team.
DIVIDENDS
Notice is hereby given that a dividend of 3,5 cents (2002: 2,2 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/re-materialised 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 IN SUBSIDIARY
During the second half of the year, Inmins Limited bought back approximately 13%
of its issued ordinary capital. Consequently, the controlling interest by
Winhold Limited increased from 52% to 60%.
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 requirements of the South African Companies Act and the Listings
Requirements of the JSE Securities Exchange South Africa and with those applied
in previous annual financial statements.
AUDIT
The financial information set out in these abridged consolidated results of the
Group have 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
Various options are being considered by the Group to explore more business
opportunities with black empowerment groups. The directorate realises the
potential to grow the Group by exploring investment deals with the right black
empowerment group.
Discussions are continuing and during 2004 an empowerment deal should be
announced.
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 J H Henderson
Chairman Deputy Chairman
1 December 2003
Directors:
W A R Wenteler (Chairman), J H Henderson* (Deputy Chairman),
W Fourie (Financial), P J Kruger, D B Mostert*, C J Pallas*
(*Non-executive)
Company secretary and registered office:
D J de Villiers
884 Linton Jones Street,
Industries East, Germiston
(PO Box 5324, Johannesburg 2000)
E-mail: winholdsec@inmins.co.za
Website: www.winhold.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: 01/12/2003 01:45:07 PM Produced by the JSE SENS Department
