| Tue 10 Feb 2004, 9:31 | | Interim Results For The Six Months Ended 31 Decemb |
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Gencor Limited - Interim Results For The Six Months Ended 31 December 2003
Release Date: 10/02/2004 08:30:02 Code(s): GMF
Gencor Limited - Interim results for the six months ended 31 December 2003
GENCOR LIMITED
Incorporated in the Republic of South Africa
Registration number 1895/001232/06
ISIN code: ZAE000013066
Share code: GMF
INTERIM results for the six months ended 31 December 2003
INCOME STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2003 2002 2003
(R million) Notes Unaudited Unaudited Audited
Dividend income from Implats 1 - 795.8 1 071.2
Share of Implats" income net 1 - 661.9 1 389.2
of dividends and adjustments
Equity accounted income from - 1 457.7 2 460.4
Implats
Net interest income 4.5 27.0 46.9
Net corporate costs (2.7) (7.3) (12.5)
Forfeited dividends 0.2 0.4 0.4
Provisions no longer 5.0 - -
required
Corporate restructuring - (8.7) (16.0)
costs
Asbestos settlement - - (460.5)
Profit before taxation 7.0 1 469.1 2 018.7
Taxation on Implats" equity 1 - (533.5) (890.4)
earnings
Ordinary taxation on company 2 (1.0) (8.8) (12.8)
Attributable income 6.0 926.8 1 115.5
Earnings per share
Earnings per share is 348.6 348.6 348.6
calculated on the weighted
average number of shares in
issue (m)
and is based on attributable 6.0 926.8 1 115.5
income of (Rm)
and after deducting - 8.7 476.5
corporate restructuring
costs and the asbestos
settlement (Rm)
for the calculation of 6.0 935.5 1 592.0
headline earnings (Rm)
Basic and diluted earnings 2 266 320
(cps)
Headline earnings (cps) 2 268 457
Dividends per share (cps)
Dividends declared and paid - 228 264
STATEMENT OF CHANGES IN SHAREHOLDERS" EQUITY
6 months to 6 months to 12 months to
31 December 31 December 30 June
2003 2002 2003
(R million) Notes Unaudited Unaudited Audited
Opening balance 72.7 4 646.1 4 646.1
Attributable income 6.0 926.8 1 115.5
Gencor"s equity portion of 1 - (191.8) (233.0)
the revaluation of
investments by Implats
Distributions to ordinary - (794.8) (920.3)
shareholders
Distributions in specie - - (4 535.6)
Total shareholders" equity 78.7 4 586.3 72.7
BALANCE SHEET
As at As at As at
31 December 31 December 30 June
2003 2002 2003
(R million) Unaudited Unaudited Audited
Investments - 4 206.3 -
Current assets 101.4 416.3 105.2
Total assets 101.4 4 622.6 105.2
Capital and reserves 78.7 4 586.3 72.7
Current liabilities and 22.7 36.3 32.5
provisions
Total equity and liabilities 101.4 4 622.6 105.2
CASH FLOW STATEMENT
6 months to 6 months to 12 months to
31 December 31 December 30 June
2003 2002 2003
(R million) Notes Unaudited Unaudited Audited
Operating cash flows (4.0) 5.8 18.7
Dividends received - 795.8 1 071.2
Dividends paid - (794.8) (920.3)
Net cash from operating (4.0) 6.8 169.6
activities
Other corporate activities 0.3 (8.1) (476.1)
Net increase/ (decrease) in (3.7) (1.3) (306.5)
cash
Closing cash balance 3 98.8 407.7 102.5
VALUATION
As at As at As at
31 December 31 December 30 June
2003 2002 2003
Unaudited Unaudited Audited
Market value of investment in - 16 680 -
Implats (Rm)
Interest in Implats (%) - 46.1 -
Number of Gencor shares in issue 348.6 348.6 348.6
(m)
Gencor"s closing share price on JSE 13 4 325 11
(cents)
Gencor"s market capitalisation (Rm) 45 15 077 38
Net asset value per Gencor share 23 1 316 21
(cents)
NOTES TO THE FINANCIAL STATEMENTS
1. Implats was equity accounted for the full 2003 financial year.
2. A substantial portion of Gencor"s costs are not deductible for tax purposes
due to the nature of its business. This accounts for the high tax charged
against net interest income less net corporate costs.
3. R35 million of Gencor"s cash was set aside as security for a rehabilitation
claim from a tribal authority and an environmental group, in order to facilitate
the unbundling of Gencor"s interest in Implats. The summons was received in July
2003 and negotiations on the claim are in process. The directors believe that
Gencor is not liable for this claim.
4. Gencor had certain obligations relating to the closure of the Prima Lirang
gold mine in Indonesia that expired in 2002. Negotiations are in progress with
the authorities on the issue of the appropriate closure certificate. The
directors believe that amounts provided are sufficient to meet Gencor"s
commitments.
5. The accounting policies used by the group are in accordance with South
African Generally Accepted Accounting Practice and are consistent with those
used in the previous year. Where necessary, comparative figures have been
adjusted to conform to changes in presentation in the current year.
COMMENTARY
1. Unbundling: The shares that Gencor held in Impala Platinum Holdings Limited
("Implats") represented the major portion of Gencor"s value. This entire
interest of 30.6 million Implats shares was distributed to ordinary shareholders
on 18 June 2003 and was effected by way of a reduction in the share premium
account and a dividend in specie.
2. Settlement: Two settlement agreements were reached with potential claimants
for compensation for asbestos-related diseases that arose or that may arise as a
result of exposure to asbestos from mines operated by companies in which Gencor
had previously had an interest. Without any admission of liability, and in full
and final settlement, Gencor last year paid an amount of R378 million into the
Asbestos Relief Trust and an amount of R42.5 million into a trust account kept
by the United Kingdom lawyers representing a defined group of claimants. In
addition, Gencor paid R40 million into its lawyers"s trust account to cover any
potential rehabilitation claims that may be made over the 3 years following the
settlement agreements, after which any residual amount will revert to the
Asbestos Relief Trust. Payment of the settlement amounts was contingent on the
successful unbundling in every respect of Gencor"s entire investment in Implats.
Subsequent to the execution of the two settlements, Gencor also concluded an
agreement with the Government. In terms of this latter agreement Gencor will,
subject to certain conditions and without any admission of liability, transfer
R35 million of the R40 million set aside for rehabilitation claims to a separate
trust to be administered by the Department of Minerals and Energy, in full and
final settlement of any rehabilitation claims that the Government may have
against Gencor.
Gencor (and others) have also received a claim for rehabilitation (either to
rehabilitate certain areas of land or to pay R64.3 million therefor) from a
tribal authority and an environmental group. The directors do not believe that
Gencor is liable for this claim but, to facilitate the unbundling, Gencor
reached an agreement with those claimants and has set aside an amount of R35
million of its cash resources by way of security. Summons for this claim was
received in July 2003 and it is being dealt with in the ordinary course.
3. Cash: Subsequent to the unbundling and the settlements Gencor"s major asset
comprises cash of R99 million, of which R35 million has been set aside by way of
security for a rehabilitation claim (see above).
4. Results: Gencor"s attributable income for the six months ended 31 December
2003 amounted to R6 million, substantially different from the R927 million
attributable income reported last year as a result of the unbundling and the
settlement referred to above.
Net interest of R5 million was received compared to the R27 million posted in
2003 and net corporate costs of R3 million were recorded for the six-month
period (R7 million in 2003).
5. Listing: The JSE agreed that Gencor"s listing continue, but will review the
situation again in June 2004.
6. Way forward and dividend: Much progress has been made in the last 6 months in
dealing with outstanding issues and it is anticipated that the position will
advance further in the next 6 months. In the light of these positive
developments an interim dividend of 3 cents per share has been declared.
For and on behalf of the Board
AS du Plessis (Chairman) Johannesburg
WE Buhrmann (Director) 9 February 2004
ANNOUNCEMENT OF INTERIM DIVIDEND NO. 155 OF 3 CENTS PER ORDINARY SHARE
An interim dividend no. 155 of 3 cents (2003: 36 cents) per ordinary share was
declared on 9 February 2004:
- Last day to trade cum-dividend Friday,27 February 2004
- Trading ex-dividend commences Monday,1 March 2004
- Record date Friday,5 March 2004
- Date of payment Monday,8 March 2004
The dividend is payable in the currency of the Republic of South Africa.
Share certificates may not be dematerialised or rematerialised between Monday, 1
March 2004 and Friday, 5 March 2004, both days inclusive.
REGISTERED OFFICE
KPMG Crescent, North Wing, First Floor 85 Empire Road, Parktown 2193
POSTAL ADDRESS
Postnet Suite 222, Private Bag X30500 Houghton 2041
COMPANY SECRETARY
J Marais
JSE SPONSOR
Investec Bank Limited
REGISTRARS
Computershare Limited
70 Marshall Street, Johannesburg 2001
P O Box 1053, Johannesburg 2000
UK SHAREHOLDER ADMINISTRATION
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Walnut House, Walnut Gardens, Claydon, Banbury, Oxon OX17 1NA
