| Mon 20 Sep 2004, 14:08 | | RESULTS FOR THE YEAR ENDED 30 JUNE 2004 |
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CONCOR LIMITED - AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
CONCOR LIMITED
(Registration number 1969/003076/06)
(Incorporated in the Republic of South Africa)
Share code: CNC
ISIN: ZAE000001616
AUDITED RESULTS FOR THE YEAR ENDED 30 JUNE 2004
Salient features Change (%) 2004 2003
Revenue (1,1) 1 387m 1 403m
Operating Income before interest 6,4 24,6m 23,1m
Earnings per share - cents 6,2 166,6 156,9
Headline earnings per share - cents (15,3) 132,9 156,9
Dividend per share - cents 0 30c 30c
SUMMARISED CONSOLIDATED INCOME STATEMENT
Audited Audited
year ended year ended
30 June 30 June
2004 2003
R`000 R`000
Revenue 1 386 954 1 402 718
Operating income before depreciation 80 207 73 204
Depreciation (55 626) (50 089)
Operating income before interest 24 581 23 115
Interest received 13 608 27 753
Interest paid (12 975) (16 638)
Income before taxation 25 214 34 230
Taxation (1 163) (12 960)
Income after taxation 24 051 21 270
Associates losses after tax (1 781) (325)
Outside shareholders interest (35) -
Earnings attributable to ordinary shareholders 22 235 20 945
Impairment of loans to associates 2 641 -
Revaluation of properties (5 004) -
Profit on sale of fixed property (2 132) -
Headline earnings attributable to
ordinary shareholders 17 740 20 945
Number of shares in issue 13 347 594 13 347 594
Earnings per share (cents) 166,6 156,9
Headline earnings per share (cents) 132,9 156,9
Dividend per share (cents) 30,0 30,0
Summarised consolidated balance sheet
Audited Audited
30 June 30 June
2004 2003
R`000 R`000
Non-current assets 224 449 206 426
Property, plant and equipment 129 699 134 436
Unlisted investments 49 335 42 478
Investment property 16 371 -
Deferred tax asset 29 044 29 512
Current assets 449 512 587 273
Other current assets 264 242 346 512
Deposits and cash 185 270 240 761
Total assets 673 961 793 699
Shareholders equity 203 802 182 514
Outside shareholders interest 53 18
Interest bearing debt 49 870 58 095
Current liabilities 420 236 553 072
Total equity and liabilities 673 961 793 699
Net asset value per share (Rand) 15,27 13,67
Gearing (%) 24 32
Capital expenditure (R`000) 55 400 80 144
Capital commitments (R`000) 9 697 28 804
Abridged cash flow statement
Audited Audited
year ended year ended
30 June 30 June
2004 2003
R`000 R`000
Operating activities
Cash receipts from customers 1 452 312 1 376 463
Cash paid to suppliers 1 422 617 1 342 782
Cash generated by operations 29 695 33 681
Net interest received 633 11 115
Dividends received 11 4
Dividends paid (4 004) (4 009)
Taxation paid (15 482) (9 851)
Cash inflow from operating activities 10 853 30 940
Cash outflow from investment activities (58 119) (75 137)
Acquisition of property plant and equipment (55 400) (80 144)
Acquisition of investment property (12 553) -
Proceeds on disposal of associates - 1 100
Movement in loans to associate companies 107 (547)
Proceeds on disposal of property, plant
and equipment 14 229 10 714
Acquisition of unlisted investments (4 502) (6 260)
Net cash utilised (47 266) (44 197)
Cash (outflow)/inflow from financing activities (8 225) 16 236
Long term liabilities repaid (5 366) (1 370)
Short term loans (repaid)/raised (2 859) 17 606
Decrease in deposits and cash (55 491) (27 961)
Segmental information
Audited Audited
year ended year ended
30 June 30 June
2004 2003
% R`000 % R`000
Revenue
Construction 78 1 084 568 81 1 132 404
Manufacturing 21 293 116 19 266 704
Discontinuing operations 1 9 270 0 3 610
100 1 386 954 100 1 402 718
Income before taxation including
associates
Construction 22 5 284 67 22 817
Manufacturing 81 18 923 47 15 751
Discontinuing Operations (3) (774) (14) (4 663)
100 23 433 100 33 905
Geographical Revenue
Republic of South Africa 91 1 268 502 84 1 174 465
Rest of Africa 9 118 452 16 228 253
100 1 386 954 100 1 402 718
Statement of changes in equity
Audited Audited
year ended year ended
30 June 30 June
2004 2003
R`000 R`000
Ordinary share capital
Opening and closing balance 6 674 6 674
Share premium
Opening and closing balance 51 640 51 640
Non-distributable reserve
Foreign currency translation reserve/(deficit)
Opening balance (1 371) 1 701
Movement 3 057 (3 072)
Closing balance 1 686 (1 371)
Distributable reserve
Opening balance as previously reported 124 292 104 307
Change in accounting policy - 3 049
Revaluation of property by associate 1 279 -
Restated opening balance 125 571 107 356
Earnings attributable to ordinary shareholders 22 235 20 945
Dividend paid (4 004) (4 009)
Closing balance 143 802 124 292
Shareholders` equity 203 802 181 235
Notes
1. Compliance with GAAP
These audited results have been compiled in accordance with South African
Statements of Generally Accepted Accounting Practice, and the listing
requirements of the JSE Securities Exchange in South Africa.
2. Accounting policies
The same accounting policies and methods of computation have been used in the
preparation of these audited financial statements as were used in the annual
financial statements to 30 June 2003.
3. Audit opinion
The results for the year ended 30 June 2004 have been audited by KPMG Inc.
Their unqualified opinion is available for inspection at the company`s
registered office.
Financial overview
Although revenue decreased by 1% to R1,387bn, operating income before interest
increased by 6,4% to R24,6m. Earnings per share increased by 6.2% to 166,6c,
however, headline earnings per share reduced by 15.3% to 132,9c.
The strength of the Rand adversely affected capital expenditure in the Mining
sector, which had a negative impact on the workload in our Civils and
Engineering divisions.
Cash resources were, as a result, depleted during the year with net interest
income reducing to R633 000 for the year.
The effective tax rate for the year was 5% (2003 - 38%), due primarily to
profits earned in Botswana and Mozambique where the Group was able to utilise
accumulated tax losses.
Capital expenditure amounted to R55,4m (2003 - R80,1m).
The Board has decided to declare a dividend of 30c per share.
Operational review
The Civils division had an extremely difficult year with very little work
secured from the Mining sector. The Chapmans Peak Drive contract, except for the
permanent toll plazas, was completed during the year, as was the 880m Katimo
Mulilo incrementally launched bridge over the Zambezi River. The Sand Bypass
project at Ngqura Harbour had a detrimental effect on Group results, as sea
conditions have proved more difficult than anticipated, resulting in a revision
of construction methods from tender stage.
The Building division has a full order book for the coming year and has steadily
enhanced its reputation and exposure over the last few years. The impressive
Ushaka Marine Theme Park in Durban opened during April 2004.
Market conditions in the Roads sector remain tough and no major contracts were
awarded during the year. The division, however, was successful in securing and
completing several small contracts in South Africa and Mozambique, and completed
the loss making Zambian contract. All the toll plazas on the Bakwena Platinum
Toll Road are now open and the Rustenburg Bypass section will be completed by
April 2005.
All the contracts in the Engineering division performed above tender
expectations, but overall the division made a small loss due to reduced revenue
and consequent under recovery of fixed costs.
The Plant capacity was improved and increased in the Opencast Mining division in
order to maintain production levels. The division delivered a strong performance
for the year and has a good order book going forward.
The Underground Mining division has felt the effects of the strengthening
exchange rate as the mining groups tightened their operations, but has
nevertheless produced a satisfactory result for the year.
Our Technicrete division produced an excellent result for the year based not
only on the positive effect of a low interest rate, but also on further
organisational efficiencies and procedures implemented during the year. The
division is well placed to benefit from the boom in the residential housing
market.
The Chapmans Peak concession contract, under the control of the Facility
Management division, was completed during the year and the road opened in
December 2003. Good results were achieved on all the facilities managed by this
division.
A significant milestone in the Coega Harbour project, in joint venture with
Hochtief and empowerment partners, was reached on 30 June with the flooding of
the inner harbour basin, thus allowing access for the berthing of ships. This
milestone also represents effective handover of the major portion of bulk
earthworks and the mass gravity concrete quay walls. The project is due for
completion in October 2005.
Prospects
The construction industry is expected to benefit from the Government`s promised
infrastructure spending, including the 2010 World Cup. However, delivery of
projects, due to government capacity constraints, remains a concern.
The Group is tendering cautiously and selectively on contracts in Africa.
It is expected that Technicrete, Mining and Facility Management will continue to
build on good past performances whilst margins in the construction divisions
remain tight.
The current order book stands at R900m, excluding the Coega contract.
Dividend declaration
The Board has declared a final dividend of 30 cents per share (2003 - 30 cents)
payable to shareholders.
In order to comply with the requirements of STRATE, the relevant details are:
Event Date
Last date to trade cum dividend Friday, 22 October 2004
Shares to commence trading ex dividend Monday, 25 October 2004
Record date (date shareholders recorded in books) Friday, 29 October 2004
Payment date Monday, 1 November 2004
No share certificates may be dematerialised or rematerialised between Monday, 25
October 2004 and Friday, 29 October 2004, both dates inclusive.
Composition of the board
Mr JV Willmott resigned from the board on 5 August 2004 and Mr JH Engelbrecht
was appointed as acting Chief Executive Officer.
On behalf of the board
FW Keller JH Engelbrecht
Chairman Acting Chief Executive
20 September 2004
Date: 20/09/2004 02:02:30 PM Produced by the JSE SENS Department
