| Fri 28 May 2004, 15:23 | | Audited Final Results For The Year Ended 29 Februa |
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Intertrading Limited - Audited Final Results For The Year Ended 29 February 2004
INTERTRADING LIMITED
(Registration number 1987/004777/06)
(`Intertrading` or `the company`)
Share code: ITR ISIN code: ZAE000015566
AUDITED FINAL RESULTS FOR THE YEAR ENDED 29 FEBRUARY 2004
CONSOLIDATED INCOME STATEMENT
2004 2003
R`000 R`000
Revenue 363 024 637 298
Continuing operations 333 110 364 467
Discontinuing operations 29 914 272 831
Operating profit before interest and
amortisation of goodwill (74) 13 216
Continuing operations 6 410 9 845
Discontinuing operations (6 484) 3 371
Net interest received 898 1 733
Net interest (paid) (1 341) (1 387)
Amortisation of goodwill (2 182) (2 182)
Net (loss)/income before taxation (2 699) 11 380
Taxation (1 615) (5 584)
Continuing operations (1 615) (4 646)
Discontinuing operations - (938)
Net (loss)/income attributable
to shareholders (4 314) 5 796
Continuing operations 3 401 3 608
Discontinuing operations (7 715) 2 188
STATEMENT OF CHANGES IN EQUITY
2004 2003
R`000 R`000
Equity at the beginning of the period 75 741 74 351
Net (loss)/profit for the year (4 314) 5 796
Foreign currency translation reserve - (2 406)
Capitalisation distribution - (2 000)
Dividend declared in respect of prior year (1 000) -
Equity at the end of the period 70 427 75 741
FINANCIAL HIGHLIGHTS
2004 2003
R`000 R`000
Continuing operations
Headline earnings 5 583 5 790
Less amortisation of goodwill (2 182) (2 182)
Earnings 3 401 3 608
Number of ordinary shares (`000) 50 000 50 000
Weighted average number of shares in issue 50 000 50 000
Headline (loss)/earnings per share (cents) (4,2) 16,0
Continuing operations 11,2 11,6
Discontinuing operations (15,4) 4,4
Less amortisation of goodwill (4,4) (4,4)
(Loss)/earnings per share (cents) (8,6) 11,6
Net asset value per share excluding
goodwill (cents) 74,6 80,9
CONSOLIDATED BALANCE SHEET
2004 2003
R`000 R`000
ASSETS
Non-current assets
- Property, plant, equipment and trademarks 6 785 4 989
- Goodwill 33 126 35 308
- Investments 1 613 2 594
- Deferred taxation 720 -
Current assets 42 436 90 250
84 680 133 141
EQUITY AND LIABILITIES
Share capital 5 000 5 000
Share premium 42 452 42 452
Distributable reserves 22 975 28 289
Shareholders` interest 70 427 75 741
Long-term liabilities 1 225
Deferred taxation - 81
Current liabilities 14 252 57 094
84 680 133 141
Discontinuing grain trading operation
Total assets 6 637 44 201
Total liabilities 7 375 37 224
CASHFLOW STATEMENT
2004 2003
R`000 R`000
Cash generated by operations 10 212 12 649
Net interest (paid)/received (443) 346
Taxation paid (6 771) (6 404)
Dividend paid (1 000) -
Cash generated from operating activities 1 998 6 591
Net cash flow from investing activities (1 934) (1 657)
Net cash flow from financing activities (233) (2 821)
Net movement in cash (169) 2 113
Net cash resources at the beginning
of the year 11 319 9 206
11 150 11 319
NATURE OF BUSINESS
Intertrading is an international agri-business service company focusing on the
procurement of Southern African fresh fruit, vegetables and macadamia nuts;
marketing such internationally via sea and air freight. Intertrading also
provides freight forwarding and logistics services for in-house and third party
agricultural produce.
OPERATIONAL REVIEW
In the prevailing circumstances the continuing operations have delivered a
reasonable performance but margins were impaired by the strengthening and
sometimes volatile Rand in the highly competitive environment in which the Group
operates. The business has been segmented between its Fruit and Grain trading
as disclosed. A review of the divisional operations is as follows:
DECIDUOUS FRUIT - Our product base in the Western Cape expanded and additional
volumes improved the bottom line.
CITRUS - Good marketing delivered pleasing results from export
programmes to the Middle East and Far East. The hot European
summer was good for our juicing programmes and our
reputation as a provider of high quality grapefruit supply
was enhanced.
MACADAMIA NUTS - Volumes were up in Southern Africa as new plantings are
coming into production. High overseas prices due to
undersupply caused by the Australian drought have been
beneficial but local competition is intense.
AGRILINK - Diversified products supply has been the airfreight
strength, and avocado airfreight programmes now contribute
meaningfully to this division. The strong Rand has eroded
the competitive advantage in some product lines.
SKYSERVICES - Ambitious and costly expansion into the Cape and the
disappointing airfreight grape season, due to market
changes, caused margins to narrow but new business from meat
exports now contributes significantly to our bottom line.
GRAIN - This division was closed in 2003 and residual stocks of
grain have now been written off which closes the chapter on
this discontinued business. The Group is, however, glad to
have moved away from the large bank/liability exposure from
these operations.
COMMENT ON RESULTS
Revenues from continuing operations amounted to R333 110 million (2003: R364 467
million) and realised a net income after taxation of R3401 million (2003: R3 608
million). As mentioned above the remnants of our grain trading division closed
in 2003 realised higher than expected losses due to write off of stocks
amounting to R7 715 million caused by the deterioration in grain quality,
exchange losses as stocks are valued in Dollars and storage costs. The write off
of grain stocks has had minimal effect on the Group`s cash resources and the net
current asset position remains strong.
DIRECTORATE
The board welcomes Cornel van der Merwe as an executive director with effect
from 8 October 2003. Cornel is responsible for the Group`s sea freight exports.
He is joined by two non-executives - Chris Jousse and Richard Wells - both of
whom have extensive knowledge in agricultural trade - both appointed on 3
December 2003.
As announced on 4 November 2003, Conafex Holdings SA and an associate have
purchased a total of 34,9% of Intertrading Limited, and Conafex has a further
option to purchase 15,6% of Intertrading`s shares at 60 cents. This option
expires on 30 November 2004.
PROSPECTS
The weak Dollar base of some of our competing countries and our abiding Rand
strength will impact our margins going forward. Local competition is intense but
we remain positive and expect to see growth from our citrus and macadamia nut
operations in the year ahead. We are currently investing in improving systems
and support to enhance our service to both overseas customers and growers. Our
realignment back to core business after the grain trading debacle will result in
better long-term returns to shareholders.
AUDIT OPINION
The financial information contained in this announcement has been audited by
Fisher Hoffman PKF, the company`s independent auditors. Acopy of their
unmodified audit report is available for inspection at the company`s registered
office.
ACCOUNTING POLICIES
These results were prepared in accordance with statements of Generally Accepted
Accounting Practice and are consistent with the accounting policies adopted by
the Group in the previous financial year except for the implementation of AC133
Financial Instruments: Recognition and Measurement.
DIVIDENDS
A dividend of 1 cent per share (2003: 2 cents) has been declared. The last day
to trade cumdividend is Friday, 16 July 2004. The share will trade ex dividend
on Monday, 19 July 2004, with the record date being Friday, 23 July 2004 and the
pay date will be Monday, 26 July 2004. Share certificates may not be
dematerialised or rematerialised between Monday, 19 July 2004 and Friday, 23
July 2004, both dates inclusive.
By order of the board
T Swart
(Chairman)
G F M van Rooyen
(Managing director)
Woodmead
28 May 2004
Registered office
Block 3, Harrowdene Office Park
Western Service Road
Woodmead, 2148
(PO Box 100, Woodlands, 2080)
Transfer secretaries
Computershare Investor Services 2004 (Pty) Limited
70 Marshall Street
Johannesburg, 2001
(PO Box 61051, Marshalltown, 2107)
Directors
Non-executive:T J Swart, C Jousse, R Wells
Executive: G F M van Rooyen, A J de Kovel*, B Julicher, C van der Merwe, T Woods
*Netherlands
Date: 28/05/2004 03:00:07 PM
Produced by the JSE SENS Department
