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DISTRIBUTION AND WAREHOUSING NETWORK LIMITED ACHIEVES ANNUAL SALES OF OVER
R1 BILLION
DISTRIBUTION AND WAREHOUSING NETWORK LIMITED
SHARE CODE: DAW
ISIN: ZAE000018834
18 August 2004
Distribution and Warehousing Network Limited (DAWN), the leading distributor
and supplier of quality plumbing, hardware and related materials to the retail
sector of the building and construction industries, today announced its results
for the year ended 30 June 2004. DAWN is listed in the Construction and Building
Materials sector of the JSE Securities Exchange South Africa.
Turnover from continuing operations increased by 13,9% with annual sales
exceeding R1 billion. This result was achieved without any growth from
acquisitions, as focus was applied to consolidation of existing businesses.
Operating profit from continuing operations increased by 30,8% to R62,5 million.
Operating profit as a percentage of turnover increased from 5,2% to 6%, whilst
profit before tax of R71 million (2003: R42 million) is 72% higher. Headline
earnings per share increased by 63,3% to 30,5 cents.
The Groups market capitalisation increased from R174 million to R405 million as
at 30 June 2004. A capital distribution of 7,5 cents per ordinary share has been
recommended by the DAWN board, subject to shareholders approval.
The above average performance was achieved as the Group is operating in a
favourable market environment, which resulted in buoyant trading conditions. As
a consequence, two important milestones were achieved, namely monthly sales in
excess of R100 million and annual sales of over R1 billion.
After the year-end, DAWN acquired a 76% interest in Amalgamated Fasteners and
Fittings Group (Pty) Limited (AFF), effective from 1 July 2004, at a P/E ratio
of 4 for a maximum purchase consideration of R15,2 million, payable over two
years on a warranted future earnings basis. AFF is involved in the wholesale
distribution of hardware fittings and components for the cabinet industry, on a
national basis.
DAWN acquired a 78% shareholding in Cobra, at a purchase consideration expected
to amount to R145 million for 100%, effective 1 January 2005 at the latest,
subject to certain suspensive conditions.
These acquisitions are in line with managements objective of making
acquisitions that further enhance the product and service scope of the Group,
both locally as well as in selected African countries.
DAWN anticipates the building, construction and property sectors to continue its
upward trend in the foreseeable future, especially in view of the latest
reduction in interest rates. Benefits from the AFF and Cobra acquisitions should
also become evident in the next year. As a result the Group is well positioned
to continue its strong improvement in earnings. The issue of Black Economic
Empowerment is also being addressed as a matter of great importance and urgency
and the Group expects to make an announcement in this regard in the near future.
Derek Tod, chief executive officer of DAWN, commented: The DAWN management team
delivered an exceptional performance in producing these results. At DAWN, we
believe our business is based on people and we value the contribution made to
these results.
- ends -
For further information please contact:
Derek Tod
Distribution and Warehousing Network Limited
Tel: 011 622 6680
Cell: 082 805 8230
Jan Beukes
Distribution and Warehousing Network Limited
Tel: 011 622 6680
Cell: 083 641 0011
Irene Botha
Basco Communications
Tel: 011 867 0500
Cell: 083 325 8388
Date: 18/08/2004 05:58:12 PM Produced by the JSE SENS Department
