| Tue 18 May 2004, 10:56 | | GROUP AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT F |
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BEARING MAN LIMITED - GROUP AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT FOR THE
YEAR ENDED 31 MARCH 2004
Bearing Man Limited
Africa"s Foremost Distributor of Dynamic Engineering Consumables
JSE Share code: BRM
ISIN: ZAE000001137
(Reg No 1955/002109/06)
GROUP AUDITED RESULTS AND DIVIDEND ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH
2004
Income Statement
Year ended Year ended
31 March 31 March Inc/
2004 2003 (Dec)
R000 R000 %
Revenue 1 009 305 1 001 787 1
Operating profit 148 356 168 112 (12)
Interest and foreign exchange costs 20 025 28 173 (29)
Profit before taxation 128 331 139 939 (8)
Taxation 43 270 44 486 (3)
Earnings for the year 85 061 95 453 (11)
Determination of headline earnings
Earnings 85 061 95 453 (11)
Adjustments after tax
where applicable
Amortisation of goodwill 300 300
Profit on disposal of property,
plant and equipment (1 175) (111)
Headline earnings 84 186 95 642 (12)
Shares in issue
Weighted average (000"s) 111 739 105 641
At end of period (000"s) 113 155 105 641
Weighted average including
diluted shares (000"s) 114 798 114 336
Earnings per share (cents) 76,1 90,4 (16)
Headline earnings per share (cents) 75,3 90,5 (17)
Diluted earnings per share (cents) 73,5 83,5 (12)
Diluted headline earnings
per share (cents) 72,7 83,7 (13)
Dividends per share 36,0 36,0
Interim (cents) 11,0 11,0
Final* (cents) 25,0 25,0
*In accordance with Generally Accounting Practice Statement AC 107, the final
dividend of 25 cents per share has not been reflected in the financial
statements.
Cash Flow Statement
Year ended Year ended
31 March 31 March
2004 2003
R000 R000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from customers 1 154 586 1 125 410
Cash paid to suppliers and employees 1 005 616 967 938
Cash flows from operating activities 148 970 157 472
Interest paid (19 961) (28 003)
Taxation paid (68 621) (34 775)
Dividends paid (38 857) (27 467)
Net cash inflow from operating activities 21 531 67 227
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property, plant and equipment
to maintain operations (18 563) (43 511)
Proceeds on disposal of property,
plant and equipment 5 360 3 600
Net repayment by non-current receivable 438
Net cash outflow from investing activities (13 203) (39 473)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term borrowings (1 606) (1 406)
Proceeds on conversion of debentures 7 871
Staff incentive scheme net transactions (737) (1 085)
Net cash inflow/(outflow) from
financing activities 5 528 (2 491)
NET INCREASE IN CASH AND CASH EQUIVALENTS 13 856 25 263
Cash and cash equivalents at beginning of year (37 986) (63 249)
Cash and cash equivalents at end of year (24 130) (37 986)
Balance Sheet
31 March 31 March
2004 2003
R000 R000
ASSETS
Non-current 94 349 102 632
Property, plant and equipment 84 122 86 165
Intangible assets 1 875 2 199
Deferred tax asset 2 664 3 016
Loan to staff incentive trust participants 5 688 11 252
Current 440 676 452 580
Inventories 297 860 304 943
Trade and other receivables 140 042 146 304
Bank balances and cash 2 774 1 333
535 025 555 212
EQUITY AND LIABILITIES
Shareholders" interest 331 131 282 074
Non-current liabilities 9 005 12 120
Long-term borrowings 7 058 8 891
Debentures 1 947 3 229
Current liabilities 194 889 261 018
Bank overdrafts and bankers acceptances 26 904 39 319
Short-term borrowings 1 824 1 597
Trade and other payables 161 667 190 202
Taxation 4 494 29 900
535 025 555 212
Debt: equity (%) 11 19
Net asset value per share (cents) 293 267
Net tangible asset value per share (cents) 291 265
Changes in Equity Statement
Year ended Year ended
31 March 31 March
2004 2003
R000 R000
Stated capital
Balance at beginning of year 57 031 57 031
Issued during the year on
conversion of debentures 5 730
Share issue expenses (19)
Balance at end of year 62 742 57 031
Retained income
Balance at beginning of year 219 357 151 371
Earnings for the year 85 061 95 453
Dividends prior year final (26 410) (15 846)
current year interim (12 447) (11 621)
Balance at end of year 265 561 219 357
Debentures
Balance at beginning of year 5 686 4 272
Transferred from debenture
liability on conversion 1 721
Converted into shares (5 730)
Redeemed (263)
Issued during the year 1 414 1 414
Balance at end of year 2 828 5 686
Total shareholders" interest 331 131 282 074
*In accordance with Generally Accounting Practice Statement AC 107, the final
dividend of 25 cents per share has not been reflected in the financial
statements.
Nature of Business
The group is Southern Africa"s largest distributor of a comprehensive range of
ball and roller bearings, seals, power transmission products, geared motors,
belting and related products. Its base of customers covers a broad spectrum of
industry, including mining, steel, paper and pulp, and agriculture.
Financial Review
The group has once again had a successful year, notwithstanding the relatively
small decrease in earnings. In order to maintain its leading position in the
market, and in terms of many of its contractual obligations, it was necessary to
substantially reduce prices.
Notwithstanding this, the group was able to achieve turnover of R1 009 million,
representing real growth.
Operating profit decreased by 11,8% to R148,4 million, and earnings by 10,9% to
R85,1 million.
Despite the reduced earnings, cash flow was positive, which enabled the group to
reduce borrowings by R15,3 million to R38 million. In the result, and due to
reduced interest rates, financing costs decreased by 29% to R20 million.
The balance sheet remains healthy with working capital at satisfactory levels.
Net asset value per share is 292,6 cents.
During the year 7,5 million shares were issued in terms of a staff incentive
scheme, which has contributed to the dilution in earnings per share to 76,1c, a
decrease of 15,8%.
Operational Review
The number of branches increased to 93 during the year with two new branches
being opened outside South Africa and one within South Africa. There are now 84
branches within South Africa and nine in neighbouring countries.
The Power Drives division continued its strong performance during the second
half of the year with the Fenner Motoline range of electric motors performing
particularly strongly. Similarly the Belting division continued to show strong
growth. The Bearings division suffered from sustained pricing pressures and was
not able to fully offset the reduction in prices with increased volumes. The
Seals and Power Transmission divisions similarly suffered from pricing pressures
but were largely able to offset this with increased volumes. The Fasteners
division made progress off a low base.
Directorate
Subsequent to year end Louis Marais, who has been acting MD during Greg Till"s
illness, has been appointed as MD. We are delighted to advise that Greg Till has
had a successful bone marrow transplant and is now well on the way to a full
recovery. We anticipate Greg returning to work during the course of the next few
months. However, Greg will on his return assume the position of executive vice-
chairman, with responsibility for the strategic growth of the group.
Black Economic Empowerment
Good progress has been made in identifying potential investors so as to
introduce a Black Empowerment Partner into the group. We anticipate being able
to make an official announcement in this regard in the near future.
Accounting Policies
The principal accounting policies, as outlined in the 2003 annual report, have
been consistently applied and comply with South African Statements of Generally
Accepted Accounting Practice.
Audit Opinion
Our auditors, PricewaterhouseCoopers Inc, have issued their opinion on the
group"s financial statements for the year ended 31 March 2004. A copy of their
unqualified report is available for inspection at the company"s registered
office.
Prospects
The group is budgeting to show real growth in the current year. The likely
growth in the South African economy augers well for the group, which is well
positioned to take full advantage of the opportunities presented.
For and on behalf of the board
D I Samuels
L J Marais
Chairman
Managing Director
18 May 2004
Dividends
An interim dividend of 11 cents was declared during the period and paid on 24
November 2003. The directors have, subsequent to the year end, declared a
further dividend (number 32) of 25 cents per share. The following dates are
applicable:
Last date to trade "cum" dividend Friday, 4 June 2004
Date trading commences "ex" dividend Monday, 7 June 2004
Record date Friday, 11 June 2004
Date of payment Monday, 14 June 2004
Shareholders may not dematerialise or rematerialise their shares between Monday,
7 June 2004 and Friday, 11 June 2004, both days inclusive.
By order of the board
D C Bassett
Company Secretary
18 May 2004
Registered office
Bearing Man Ltd, 6 Tetford Circle, Millennium Bridge Business Park, La Lucia
Ridge, 4320, South Africa
Auditors
PriceWaterhouseCoopers
Transfer secretaries
Computershare Limited, 70 Marshall Street, Johannesburg, 2001
Directors
DI Samuels* (Chairman), LJ Marais (Managing), A Bekker (Alternate), A
Goldstone*, M Rose-Innes*, RE Sherrell*, WR Taylor, GJ Till (Non-executive*)
Company Secretary
DC Bassett
Results are available on: www.bearingman.co.za
Date: 18/05/2004 10:00:10 AM Produced by the JSE SENS Department
