| Wed 18 Feb 2004, 17:14 | | GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 200 |
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TRANSPACO LIMITED - GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2003 AND
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
TRANSPACO LIMITED
Reg.No.1951/000799/06
ISIN: ZAE000007480
Share Code: TPC
GROUP RESULTS FOR THE PERIOD ENDED 31 DECEMBER 2003 AND WITHDRAWAL OF CAUTIONARY
ANNOUNCEMENT
NATURE OF BUSINESSTranspaco manufactures, distributes and recycles plastic and
packaging products focusing on business activities mainly in South Africa and on
exports into Africa.BUSINESS REVIEWThe group faced a number of challenges during
the period under review particularly with regard to the plastic bag regulations.
The board is however, pleased to report improved results reflecting an increase
in headline earnings per share of 13% to 42,3 cents (Dec 2002 - 37,6 cents).
Turnover decreased by 10% to R 158 million (Dec 2002 - R 176 million) mainly
attributable to the deflationary environment and the decline in sales of plastic
bags as a result of the new regulations which became effective on 9 May 2003.
Notwithstanding the decrease in turnover, operating income increased to R 17,8
million (Dec 2002 - R 17,4 million) as a result of improved gross profit margins
and an 8% reduction in operating costs.
Due to good working capital management and lower interest rates, net interest
paid decreased by 42% to R 1,54 million (Dec 2002 - R 2,67 million). This
reduction has had the effect of improving income before taxation by 10% to R
16,3 million (Dec 2002 - R 14,7 million). Interest cover increased to 11,6 times
(Dec 2002 - 6,5 times).
The number of ranking shares in issue has been reduced as a result of the group
repurchasing 321 701 shares at an average price of R 3,03 per share for a total
consideration of R 975 685.
The net asset value per share increased by 9% to 331 cents (June 2003 - 303
cents).PROSPECTSTranspaco remains cautiously optimistic. The two remaining
plastic bag factories are operating at acceptable levels. There will be further
benefits from the expansion programme in the Rigid and Recycling divisions as
the plant was commissioned in the latter part of the period under review.
Stronger cash flows are anticipated for the second half of the financial
year.WITHDRAWAL OF CAUTIONARY ANNOUNCEMENTShareholders are referred to the
trading statement and cautionary announcement dated 30 January 2004, and as a
result of the publication of the interim results announcement, caution is no
longer required when dealing in Transpaco shares.DIVIDENDThe board has declared
an interim dividend of 7 cents per share to shareholders recorded in the
register on Friday 26 March 2004 payable on Monday 29 March 2004.
The last day to trade "cum" dividend will be Thursday 18 March 2004. Shares will
commence trading "ex" dividend from the commencement of business on Friday 19
March 2004. The record date will be Friday 26 March 2004. Share certificates may
not be dematerialised or rematerialised between Friday 19 and Friday 26 March
2004, both days inclusive.THE BOARDWe are pleased to announce that Archie Aaron
a non-executive director since Transpaco listed in 1987, has been appointed non-
executive chairman. Phil Abelheim retains his position as chief executive
officer. Louis Weinberg previously group financial manager has been appointed
financial director. The above appointments are effective from 18 February 2004.
ACCOUNTING POLICYThese results are prepared in accordance with South African
statements of Generally Accepted Accounting Practice and the South African
Companies Act. The accounting policies used are consistent with those in audited
financial statements for the year ended June 2003.ON BEHALF OF THE BOARD
AJ Aaron* Chairman
PN Abelheim Chief Executive
L Weinberg Financial Director
DATE: 18 February 2004
DIRECTORS: AJ Aaron* (Chairman); PN Abelheim (Chief Executive); HA Botha; JS
Botha; SR Bouzaglou; SL Chaitel; DR Hilewitz*; SI Jacobson*; AC Salomon*; SP van
der Linde*; L Weinberg
*non-executive
AUDITORS: Ernst & Young
SPONSOR: Investec Bank Limited
REGISTERED OFFICE331 Sixth Street
Wynberg, Sandton
TRANSFER SECRETARIES
Computershare Limited
70 Marshall Street, Johannesburg
CONSOLIDATED INCOME STATEMENT
Unaudited Unaudited Audited
6 months 6 months % 12 months
R"000 Dec 2003 Dec 2002 Change Jun 2003
Turnover 157 904 175 580 (10) 319 607
Cost of sales 101 578 117 141 (13) 209 891
Gross Profit 56 326 58 439 (4) 109 716
Operating Costs 33 585 36 383 (8) 72 504
Depreciation 4 915 4 648 6 9 545
Operating Income 17 826 17 408 2 27 667
Net interest paid 1 542 2 669 (42) 4 680
Income before taxation 16 284 14 739 10 22 987
Taxation 4 254 3 426 24 5 212
- Current taxation 2 577 2 746 3 525
- Deferred taxation 1 102 680 1 476
- Secondary taxation on 575 - 211
companies
Income after taxation 12 030 11 313 6 17 775
Weighted average number of 27 823 30 108 (8) 29 746
ranking ordinary shares in
issue (`000)
Earnings per share (cents) 43,2 37,6 15 59,8
Headline earnings per share 42,3 37,6 13 60,5
(cents)
Dividend per share (cents)* 7,0 - 15,0
Reconciliation of headline
earnings (R"000)
Basic earnings 12 030 11 313 17 775
Impairment cost of assets - - 187
(Profit)/Loss on disposal of (263) - 41
plant and equipment
Headline earnings 11 767 11 313 18 003
* Dividend declared after the period
CONSOLIDATED BALANCE SHEET
Unaudited Unaudited Audited
6 months 6 months 12 months
R"000 Dec 2003 Dec 2002 Jun 2003
ASSETS
Non-current assets 67 598 56 659 54 888
Property, plant and equipment 66 984 55 953 54 259
Intangibles 614 706 629
Current assets 97 927 97 147 98 675
Inventories 22 932 24 113 26 389
Accounts receivable 73 513 71 406 60 949
Taxation 1 436 1 585 3 226
Cash resources 46 43 8 111
TOTAL ASSETS 165 525 153 806 153 563
EQUITY AND LIABILITIES
Capital and reserves 91 980 83 909 85 091
Issued capital 278 301 281
Reserves 1 688 5 525 1 688
Accumulated profit 90 014 78 083 83 122
Non-current liabilities 25 300 15 889 14 653
Interest bearing borrowings 22 253 14 741 12 709
Deferred taxation 3 047 1 148 1 944
Current liabilities 48 245 54 008 53 819
Trade and other payables 37 566 42 196 47 039
Bank overdraft 738 6 243 -
Current portion of interest 9 941 5 569 6 780
bearing borrowings
TOTAL EQUITY AND LIABILITIES 165 525 153 806 153 563
Number of shares in issue `000 `000 `000
Number of shares in issue 28 089 30 108 30 108
(net of 2 602 777 treasury
shares)
Shares repurchased and - - (2 019)
cancelled
Shares repurchased (322) - -
Ranking number of shares 27 767 30 108 28 089
Salient features
Net asset value per share 331 279 303
(cents)
Gearing ratio % 36 32 13
Shareholders Funds: Total 56 55 58
assets %
Interest cover (x) 11,6 6,5 5,9
Operating margin % 11,3 9,9 8,7
ABRIDGED CONSOLIDATED CASH FLOW
Unaudited Unaudited Audited
6 months 6 months 12 months
R"000 Dec 2003 Dec 2002 Jun 2003
Cash flow from operating
activities
Cash generated from operations 3 898 11 546 40 003
Dividend paid (4 165) - -
Net interest paid (1 542) (2 669) (4 680)
Taxation paid (1 362) (2 801) (5 367)
Net cash flow from operating (3 171) 6 076 29 956
activities
Cash flow from investing
activities
Proceeds on disposal of plant 870 - 294
and equipment
Acquisition of plant and (18 231) (5 164) (8 877)
equipment
Net cash flow from investing (17 361) (5 164) (8 583)
activities
Cash flow from financing
activities
Increase/(Decrease) in long 9 544 (780) (2 812)
term borrowings
Increase/(Decrease) in short 3 161 (296) 915
term borrowings
Repurchase of share capital (976) - (5 329)
Net cash flow from financing 11 729 (1 076) (7 226)
activities
Net movement in cash for the (8 803) (164) 14 147
period
Cash and cash equivalents at 8 111 (6 036) (6 036)
the beginning of the period
Cash and cash equivalents at (692) (6 200) 8 111
the end of the period
STATEMENT OF CHANGES IN EQUITY
Unaudited Unaudited Audited
6 months 6 months 12 months
R"000 Dec 2003 Dec 2002 Jun 2003
Opening balance 85 091 72 596 72 596
Earnings attributable to 12 030 11 313 17 775
shareholders
Dividend paid (4 165) - -
Repurchase of share capital (976) - (5 280)
Closing balance 91 980 83 909 85 091
Date: 18/02/2004 05:11:06 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
