| Mon 23 Aug 2004, 8:38 | | Audited Results For The Year Ended 30 June 2004 |
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Gencor Limited - Consolidated Audited Results For The Year Ended 30 June 2004
GENCOR LIMITED
Incorporated in the Republic of South Africa
Registration number 1895/001232/06
Share code: GMF
ISIN code: ZAE000013066
GENCOR
CONSOLIDATED AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
INCOME STATEMENT
Year ended Year ended
30 June 30 June
(Rm) Notes 2004 2003
Ordinary dividends from 1 - 1 071.2
Implats
Share of Implats` income net 1 - 1 389.2
of dividends and adjustments
Equity accounted income - 2 460.4
Net interest income 7.6 46.9
Net corporate costs (4.8) (12.5)
Operating income 2.8 2 494.8
Forfeited dividends 0.6 0.4
Provisions no longer required 16.5 -
Corporate activities - (16.0)
Asbestos settlements - (460.5)
Income before taxation 19.9 2 018.7
Taxation on equity accounted - (890.4)
income
Ordinary taxation on company 2 (1.6) (12.8)
Attributable income 18.3 1 115.5
Earnings per share (cents)
Earnings per share is 348.6 348.6
calculated on the weighted
average number of shares in
issue (m)
and is based on attributable 18.3 1 115.5
income of (Rm)
and after deducting corporate - 476.5
activities and the asbestos
settlements (Rm)
for the calculation of 18.3 1 592.0
headline earnings (Rm)
Basic and diluted earnings 5.2 320.0
(cents)
Headline earnings (cents) 5.2 456.7
Dividends declared and paid 3.0 264.0
per share (cents)
BALANCE SHEET
As at As at
30 June 30 June
(Rm) Notes 2004 2003
Non-current assets 0.1 0.2
Current assets 3 89.9 105.0
Total assets 90.0 105.2
Capital and reserves 80.5 72.7
Current liabilities and provisions 4 9.5 32.5
Total equity and liabilities 90.0 105.2
STATEMENT OF CHANGES IN EQUITY
Year ended Year ended
30 June 30 June
(Rm) 2004 2003
Opening balance 72.7 4 646.1
Attributable income 18.3 1 115.5
Ordinary dividends for year (10.5) (920.3)
Equity portion of investments - (233.0)
revalued by Implats
Dividend in specie - (4 535.6)
Total shareholders` equity 80.5 72.7
CASH FLOW STATEMENT
Year ended Year ended
30 June 30 June
(Rm) 2004 2003
Operating cash flows (5.4) 18.7
Dividends received - 1 071.2
Dividends paid (10.5) (920.3)
Net cash from operating activities (15.9) 169.6
Other corporate activities 0.7 (476.1)
Net decrease in cash (15.2) (306.5)
Closing cash balance 87.3 102.5
VALUATION
As at As at
30 June 30 June
(Rm) 2004 2003
Number of Gencor shares in issue (m) 348.6 348.6
Ruling share price on the JSE at year-end 13 11
(cents)
Gencor`s market capitalisation (Rm) 45.3 38.3
Net asset value per share (cents) 23 21
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.
3. R35 million of Gencor`s cash is set aside as security for a rehabilitation
claim as indicated under the commentary.
4. Gencor had certain obligations relating to the closure of the Prima Lirang
gold mine in Indonesia that expired in 2002. The Indonesian authorities issued
the appropriate closure certificate on 11 May 2004. Amounts provided were
sufficient for Gencor to meet its commitments.
5. The accounting policies used by the group are in accordance with Statements
of South African Generally Accepted Accounting Practice and are consistent with
those used in the previous year.
6. Gencor`s annual financial statements have been audited by its auditors,
PricewaterhouseCoopers Inc, and a copy of their unqualified report is available
for inspection at the company`s registered office.
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. Settlements: 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 (`ART`) and an amount of R42.5 million into a trust
account kept by United Kingdom lawyers representing a defined group of
claimants. In addition, Gencor paid R40 million into its lawyers` trust account
to cover any potential rehabilitation claims that may be made over the three
years following the settlement agreements, after which any residual amount will
revert to the ART. Payment of the settlement amounts was contingent on the
successful unbundling in every respect of Gencor`s entire investment in Implats.
3. Rehabilitation Claims: Subsequent to the execution of the two asbestos
settlements referred to above, Gencor also concluded an agreement with the
Government. In terms of this arrangement 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 Mineral and Energy Affairs in full and final
settlement of any rehabilitation claims that the Government may have against
Gencor.
Gencor and others received a claim in July 2003 for rehabilitation (either to
rehabilitate certain areas of land or to pay R63.4 million therefor) from the
Bareki Tribal Authority and the Nkululeko Environmental and Development Group.
The directors do not believe that Gencor is liable for this claim but, to
facilitate the unbundling, Gencor agreed to set aside an amount of R35 million
of its cash resources by way of security for the claim. Gencor is dealing with
the claim in the ordinary course of business.
4. Prima Lirang: The obligations to the Indonesian authorities relating to the
closure of the Prima Lirang gold mine on Wetar Island expired at the end of
2002. The Indonesian authorities issued the appropriate closure certificate on
11 May 2004. The amounts provided by Gencor to cover environmental issues were
sufficient to meet the company`s obligations for Prima Lirang`s rehabilitation
and closure.
Gencor sold its interest in Prima Lirang `voetstoots` to the minority
shareholder for a nominal sum. The sale was completed in every respect on 11
August 2004.
5. Cash: Subsequent to the unbundling and the settlements Gencor`s major asset
comprises cash of R87 million (2003: R103 million), of which R35 million has
been set aside by way of security for a rehabilitation claim (see above).
6. Results: Due primarily to the unbundling of its interest in Implats, Gencor`s
attributable income for the financial year ended 30 June 2004 amounted to R18.3
million, a decrease of 98% on the R1 115.5 million reported in the previous
financial year.
Interest revenue totalled R7.6 million compared to the R46.9 million posted last
year and net corporate costs of R4.8 million were recorded (R12.5 million in
2003). R16.5 million other income arose mainly from provisions no longer
required.
7. Listing: The JSE has agreed that Gencor`s listing continue, but will review
the situation again in December 2004.
8. The Way Ahead: Much progress has been made in the last year in dealing with
outstanding matters. The Prima Lirang obligations have been resolved and the
retirement funding matters have largely been put to bed. The resolution of the
outstanding rehabilitation claims are also in process. The Board will advise
shareholders of future plans regarding the possible voluntary liquidation of
Gencor as soon as finality is reached on the few outstanding issues reported
above.
9. Dividends: In the light of the positive developments outlined above, a final
dividend of 3 cents per share has been declared.
For and on behalf of the Board:
A S du Plessis W E Buhrmann
Chairman Director
23 August 2004
ANNOUNCEMENT OF FINAL DIVIDEND NO 156 0F 3 CENTS PER SHARE
Final dividend No. 156 of 3 cents (2003: Nil cents) per ordinary share was
declared on 23 August 2004:
- Last day to trade cum-dividend Thursday, 16 September 2004
- Trading ex-dividend commences Friday, 17 September 2004
- Record date Thursday, 23 September 2004
- Payment date Monday, 27 September 2004
The dividend is payable in the currency of the Republic of South Africa.
Share certificates may not be dematerialised or rematerialised between Friday,
17 September 2004 and Thursday, 23 September 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
Registrars
Computershare Investor Services 2004 (Pty) Ltd, 70 Marshall Street,
Johannesburg, 2001, P O Box 61051, Johannesburg, 2000
JSE Sponsor
Investec Bank Limited
UK shareholder administration
Project Consultants Limited, Walnut House, Walnut GardensClaydon, Banbury, Oxon
OX17 1NA
Sponsor
INVESTEC
The Annual Report will be mailed to shareholders on or about 27 August 2004 and
copies may be obtained from:
Registrars: Computershare Investor Services 2004 (Pty) Ltd, PO Box 61051,
Johannesburg 2000. (Tel) (011) 370-5000 (Fax) (011) 688-5216
UK Shareholder Administration: Project Consultants Limited, Walnut House, Walnut
Gardens, Claydon, Banbury Oxon OX17 1NA. (Tel) +44 (01295) 690180 (Fax) +44
(01295) 690181/2
Date: 23/08/2004 07:00:08 AM Produced by the JSE SENS Department
